March 27, 2023Posted by Vietnam BriefingWritten by Pritesh SamuelReading Time:
An opinion piece in Bloomberg titled ‘Trying to Replace China’s Supply Chains? Don’t Bother?’, published March 1, 2023, claims that ‘Vietnamese factories were supposed to save globalization’ but that they cannot. This is incorrect and here’s why, writes Dezan Shira and Associates, Head of Business Intelligence, Pritesh Samuel.
Vietnam’s factories were never supposed to save globalization. They offer businesses an alternate location for manufacturing – in line with a China+1 strategy that myriad companies now pursue due to rising costs in China.
Globalization is shaped by several factors, including geopolitics, national interests of governments, regional trade and investment initiatives, public policymaking directives by key trade bodies, and so on. It cannot be trivialized into the assumption that a single country can save it.
China’s advanced supply chain and supplier network, driven by the government’s long-term national policies, make it a manufacturing giant. At present, no single country, including Vietnam, can fully replace China’s manufacturing capacity.
Tiếp tục đọc “Can Vietnam Replace China? No, But it was Never Supposed to Either”
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