China Quivers in fear of ‘Made in Vietnam’
Did you notice that Vietnam has come a long way since global economic crisis, 2008? Meanwhile the aftermath of *Subprime Mortgage Crisis has had huge effect on the world economy, in Vietnam, the rate of economic growth has been unstoppable. It has risen from year to year since then. The stunning progress results from the increasing growth of export. According to Vietnam’s government, the amount of export this year will be expected to reach an all-time high.
What’s going on there, Vietnam? To describe Vietnam in a word, it is ‘HOT’ because this place has been regarded as a key production plant of ‘Big companies’. Actually, many global companies such as Microsoft, Intel, Samsung, Nike, Apple’s Foxconn, etc have moved into the southern Vietnam where it was an originally orchard once.
Interestingly, until just a few years ago, most people took it for granted that China was by far the best in terms of the production plant of global companies. However, Vietnam grabbed big companies’ attention, and it changed the currency of global industries. Vietnam’s cheap labor quivered China, and this rookie hit the accelerator with *TPP(Trans-Pacific Partnership), where China is not included because this treaty was basically designed for containing China. Given those reasons, in the near future, we will see much more ‘Made in Vietnam’ than China’s.
According to the one article in Korean Economy, the minimum wage is $1.96 per hour in Vietnam, and $3.27 in china. However, a prospect describe that this minimum wage in Vietnam will continuously increase. Truly, in Vietnam’s minimum wage went up every year more than 10%.
Lastly, if you ask me about Vietnam’s outlook, although we need to keep an eye on Vietnam, for now, the power of 'Made in Vietnam' will be able to bring much more money into Vietnam.
*Subprime mortgage crisis: The U.S. subprime mortgage crisis was a nationwide banking emergency that coincided with the U.S. recession of December 2007 – June 2009.[1] It was triggered by a large decline in home prices, leading to mortgage delinquencies and foreclosures and the devaluation of housing-related securities.
*TPP: The Trans-Pacific Partnership (TPP) is a trade agreement among twelve Pacific Rim countries concerning a variety of matters of economic policy, about which agreement was reached on 5 October 2015 after 7 years of negotiations.
Source, Korean Economy
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