Vietnam has four advantages in attracting investment.
First, the transportation of global trade are convenient. Vietnam has a very good global trade interface. It has many deep-water ports, which creates its geographical advantage in Global trade.
Second, Vietnam government adheres to reform and opening up, and always pays great attention on education.
Third, the labor force is sufficient and cheap. Vietnam’s population structure has an advantage in the development of manufacturing industry. Almost half of the population is under the age of 30, and young people account for more than 50%, which means a huge labor market.
Fourth, tariff preference. Vietnam has formed a value depression in its unique tariff and Global trade policies. Vietnam is one of the countries with the largest number of regional trade agreements in the world.
The disadvantage of Vietnam will cause fatal injury to enterprises.
The biggest defect is that Vietnam’s local supply chain, industrial chain is not perfect, and the personnel efficiency is low. Vietnam’s vocational education system is relatively backward. The dominant products are mainly concentrated in the industries with short industrial chain, low labor force, simple processing and intensive. As a result, most of the local products are relatively low-end products. In addition, due to the underdeveloped local financial industry, it is difficult to finance locally. In addition, the local consumption capacity is not good, and can only rely heavily on exports. In case of Global trade or export policy turbulence, the impact on Vietnamese enterprises will be greater.
It seems that Vietnam is following the development path of China in the past, but China’s economic characteristics are far more than that. China’s market capacity, scientific research strength, product diversification, “full manufacturing” industrial chain, and international influence are all incomparable to Vietnam. This proves that made in China is indispensable. From the perspective of becoming a world factory, it is unlikely that Vietnam will replace China, which will never be realized in at least 3-5 years.
