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July 08, 2010

Is Vietnam the next China?

Not really, and that’s a good thing. It is also precisely why East West manufactures in both locales. While Vietnam enjoys certain labor and raw material cost advantages, it will likely never match China’s depth and breadth of manufacturing expertise.

China’s sheer size and 20-year head start in building an infrastructure to support its manufacturing base will insure its seat at the head of the manufacturing table for years to come. China possesses a broad array of manufacturing disciplines, and a bench strength which often extends 4 or 5 deep per local supplier type. The resulting versatility and scalability are unrivaled in Asia, if not the world.

Vietnam’s relative lack of manufacturing maturity, and its strong hunger to achieve a level of success there, are its draw. With labor costs significantly lower than China and an environment friendly to outside investment, Vietnam is very attractive for the correct manufacturing fit. Injection molding, light electronics, and overall assembly work are particularly symbiotic with capabilities there.

The link below gives one reporter’s view of developments in Vietnam. If you would like to learn more about the distinctions between manufacturing in China and Vietnam, and which would be the better fit for your needs, please contact us.


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