Unveiling Vietnam's Potential: The Emerging Manufacturing Powerhouse
Asia and the New Manufacturing Powerhouse
Vietnam is a country in Southeast Asia, mostly known for the Vietnam War. Economically, for a long time, Vietnam was known as an agrarian, rural, and informal economy. Nowadays, Vietnam is becoming an urban and formal economy with an emerging manufacturing sector.
Why Outsource to Vietnam?
The country has several key advantages to stand out from the rest of Asia and become the new manufacturing powerhouse.
Abundant Workforce
Population: The workforce in the country is very abundant with about 54 million people, increasing by 1.5 million people annually.
Skill Levels: The labor pool is not only low qualified workers but is becoming more skilled and high-end.
Work Ethics: Vietnamese workers are generally accepted to have strong work and quality ethics.
Labor Cost: Despite the abundant and qualified human resources, Vietnam’s labor cost is significantly lower than in other countries.
The average labor cost is around 90% less than in the U.S.
50% less than in China
40% less than in India or Thailand
This translates to remarkable savings for businesses.
Modern Infrastructure
Seaports and Airports: With more than a 3,000-kilometer-long coast, you can find many fully modernized seaport and airport facilities.
Connectivity: These facilities easily connect to international buyers from anywhere in the country.
Freight and Shipment: Modern and well-established freight and shipment facilities enable effective transportation and protection of goods.
Government Stability and Support
Stable Government: Unlike many other countries in the region, Vietnam’s government is very stable and committed to seeing the country grow.
Low Business Costs: General costs of doing business, such as rent and utilities, are among the lowest in Southeast Asia.
Business Barriers: The government is eager to remove business barriers.
Free Trade Agreements: Vietnam has several free trade agreements and is finalizing negotiations for an FTA with the EU.
Trans-Pacific Partnership (TPP): When concluded, the TPP will provide Vietnam with tariff-free access to some of the largest markets in the world.
Conclusion
With its abundant and increasingly skilled workforce, modern infrastructure, stable government, and low costs, Vietnam is poised to become the new manufacturing powerhouse in Asia. Outsourcing to Vietnam offers significant economic advantages and access to a thriving, dynamic market.
