Vietnam as the New World Factory Business & Marketing Essay (Essay Sample)

Vietnam not Ready to be the world’s New Factory
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Vietnam not Ready to be the world’s New Factory
In the last five years, Vietnam has become one of the most preferred destinations for many foreign investors. The rapid industrial growth in the country, supported by the favorable bilateral trade with some of the world’s largest economies like the United States and the United Kingdom, has positioned the East Asian giant as one of the fastest-growing countries in the world. Vietnamese ballooning economy and mushrooming of manufacturing industries have also been accelerated by the escalating trade wars between China and the United States. However, deputes these impressive industrial growths and supporting factors, Vietnam is not ready to replace China as the world’s factory due to several factors.
First, unlike China, which has a population of almost the entire African continent (2.35 billion), Vietnam’s population is barely the size of Guangdong province in China. For a country that seeks to cement its legacy as the world’s largest manufacturer, a relatively large population that would ensure a constant supply of labor is vital, a precious commodity that Vietnam does not have at the moment. Moreover, despite its proximity to China, Vietnam policies do not encourage free movement across the borders of the two countries that would supplement the already insufficient labor supply.