Meet Asia’s new manufacturing powerhouse: Vietnam

Screen Shot 2015-04-09 at 9.41.39 AM
If you thought Asia’s manufacturing giants are just China, South Korea and Thailand, say hello to a new one: Vietnam. Its benchmark purchasing managers’ index for manufacturing has expanded — a reading above 50 — every month since Aug. 2013, according to HSBC and Markit Economics.
That feat is unmatched by any other Asian country that HSBC and Markit track. By contrast, China’s manufacturing PMI has contracted in eight months in that same period. Thailand’s manufacturing, as measured by the government, contracted for 22 months through January.
Screen Shot 2015-04-09 at 9.41.12 AM
“Central to the latest improvement in business conditions were further rises in both output and new orders,” HSBC and Markit said in a note accompanying the release of Vietnam’s March data. Vietnamese firms were able to secure more new orders from both domestic and export clients and “falling commodity prices in world markets continued to feed through to lower input costs,” said Andrew Harker, senior economist at Markit.
Vietnam last year became the biggest exporter to the U.S. among the 10 Association of Southeast Asian Nations, or Asean. And with its strategic location, younger population and lower costs than China, it has drawn the likes of Samsung Electronics, Intel and Siemens, besides apparel and shoe makers.
In Vietnam’s favor, wages are still low, with the average monthly wage at $197 in 2013, compared with $391 for Thailand and $613 for China, according to the International Labour Organization. Its population is younger: only about 6 percent is above the age of 65, compared with about 10 percent in China and Thailand and almost 13 percent in South Korea.
Of course, much of Vietnam’s work now is in low-end manufacturing in textiles, garments, furniture and electronics. That may change, as companies invest in training and R&D. What has raised some questions is worker unrest. Thousands of workers at a Ho Chi Minh City factory struck work this week over a government pension change, the worst labor unrest since last May’s anti-China riots that led to factory closures. It may be the one wrinkle in Vietnam’s rise to manufacturing greatness.
Source : Thanh Nien Daily | April 2, 2015
Thomas D’Innocenzi
Advertisements

About thomasdinnocenzi

Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
This entry was posted in Business, Economy, Global Sourcing and tagged , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s