Vietnam is not the next China.

It never was. Here’s why Vietnam is not the next China.

1. Size matters.

↳ Vietnam’s GDP is $429 billion. Just a fraction of China’s.

↳ It’s like comparing a city to a country.

2. Port capacity.

↳ Vietnam’s ports can’t handle China’s shipping volume.

↳ Just 1% of China’s shipping would overwhelm them.

3. Labor force.

↳ Vietnam’s unemployment rate is only 2.27%.

↳ There aren’t enough workers to take over China’s factories.

4. Supply chains.

↳ Most inputs in Vietnam’s products come from China.

↳ Moving factories doesn’t cut China out of the loop.

5. Infrastructure.

↳ Vietnam lacks the road-to-rail-to-port systems.

↳ It can’t support the volume needed by big companies.

6. Managerial expertise.

↳ There’s a shortage of experienced managers.

↳ The government’s regulatory capacity is weak.

7. Economic reality.

↳ Vietnam will benefit from offshoring trends.

↳ But it’s not going to be the “next China.”

Vietnam has potential.

It’s a growing hub.

But it’s not a replacement for China.

It’s an alternative.

And that’s okay.

Author

AiUTOMATING PEOPLE, ABN ASIA was founded by people with deep roots in academia, with work experience in the US, Holland, Hungary, Japan, South Korea, Singapore, and Vietnam. ABN Asia is where academia and technology meet opportunity. With our cutting-edge solutions and competent software development services, we're helping businesses level up and take on the global scene. Our commitment: Faster. Better. More reliable. In most cases: Cheaper as well.

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