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More companies moving production from China to Vietnam

After TPP, More factory moving from China to Viet Nam, Leading sportswear manufacturer Nike has been moving production from China to Vietnam, according to recently released statistics.

In 2013, Nike’s Vietnamese factories manufactured 42 percent of its total number of globally distributed products, whereas its Chinese factories only manufactured only 30 percent.

Nike is not the only big-name company moving production from China to Vietnam. An increasing number of global corporations such as Adidas, Samsung and Intel have also been investing heavily in Vietnam.

The country is becoming a stronger manufacturing base, and other companies such as Lancaster and Sequoia Paris have also expressed interest in moving to Vietnam.

Most of the companies’ heads said that increasing costs and instability in China’s business market have made China a less attractive location for factories.

Tensions between China and Japan are also pushing Japanese firms to leave the Chinese market in search of a better alternative.

Vietnam is currently working on strategies to make the most of this market shift.

Analysts say that Vietnam’s resources and cheap labor will only attract temporary investments. To become a more favorable permanent prospect for investors, Vietnam will have to solve its biggest issues: poor infrastructure and heavy bureaucracy.



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More companies moving production from China to Vietnam