Worker wages in Vietnam are now one half those in China.  China is experiencing skyrocketing wages and growing labor shortages.  Thus, substantial manufacturing is moving from China to Vietnam. Just south of Ho Chi Minh City, the capital of Vietnam, massive factories now produce millions of dollars of goods for Western companies such as sportswear maker Nike Inc.  More than a dozen large industrial parks in the area recently attracted pledges for an additional $3.67 billion in foreign investment, with about 40 percent of that amount being from textile companies.  If the Trans-Pacific Partnership (TPP) agreement passes the US Congress, vastly more manufacturing will move to Vietnam, because that deal eliminates certain tariffs between members nations, especially benefiting Vietnam (and Malaysia).  One of the world’s largest producers of clothing labels and tags, Avery Dennison Corp. based in Glendale, California, just opened a 300,000 square foot plant in Long An, Vietnam.  Avery Dennison says “the skills of Vietnamese workers are increasing exponentially every year.”  Samsung Electronics has pledged to double its $4.5 billion investment in manufacturing electronics in Vietnam soon.  Analysts say, “if TPP goes through, Vietnam’s economy will get a $33.5 billion boost over the next decade.”  Vietnam is poised to become one of the world’s two fastest-growing large economies between now and 2050, along with Nigeria.  Thousands of businesses have Vietnam on their radar.

Source:  Based on Kathy Chu, “Made in Vietnam Ready for Boost,”  Wall Street Journal, October 19, 2015, B1.