Vietnam's manufacturing potential: a small screwdriver reveals the gap.
China has long been hailed as the "factory of the world", and as the global economic landscape evolves, Vietnam is gradually becoming a new focus. At a time when the international division of labor and cooperation model is changing significantly, Vietnam's manufacturing potential is in the spotlight. But a small screwdriver reveals the gap Vietnam faces on its way to becoming the "factory of the world". Let's take a closer look at this rising manufacturing powerhouse.
Vietnam's geographical advantages and policy attractiveness.
From a macro perspective, Vietnam has the potential to become a manufacturing powerhouse in terms of geography and policy. Located in Southeast Asia with a coastline facing the South China Sea, Vietnam is an international waterway through the Strait of Malacca, providing strong support for the development of an export-oriented economy. **The friendly attitude towards foreign investment has created a good environment for attracting investment, and through incentives such as tax exemptions and land use incentives, Vietnam has actively improved the investment environment and reduced the operating costs of enterprises. Signing free agreements, such as the Trans-Pacific Partnership (TPP), has significantly lowered barriers and provided a broader market for manufacturing.
Advantages of infrastructure and labor costs.
In terms of infrastructure, Vietnam has made significant progress, with rapid improvement of the country's highway network, transportation facilities such as ports and airports, as well as improved public services such as electricity and water resources, providing favorable conditions for the manufacturing industry. Vietnam's abundant labor resources, especially the relatively low labor costs, have become one of the reasons why international companies have relocated their production bases to Vietnam. Statistics show that Vietnam's labor costs are only about half that of China, providing a strong attraction for labor-intensive businesses. Well-known companies such as Samsung, Intel, and LG Electronics have invested in Vietnam, making it Samsung's largest mobile phone production base.
Challenge: A small screwdriver suggests.
Vietnam faces major challenges on its way to becoming the "factory of the world". Recent data shows that Vietnam's economy is under tremendous pressure, especially in the textile and footwear manufacturing sector, where exports have fallen sharply. What is worrying is that Vietnam still needs to work hard to learn Xi in terms of technological innovation, industrial chain integrity and management experience, which have become bottlenecks for Vietnam's manufacturing development. The cost of a small screwdriver imported from China is only 1 yuan, while the cost of producing it in Vietnam can be as high as 3 yuan, highlighting the challenges faced by Vietnam in the manufacturing industry.
Electricity** and the incompleteness of the industrial chain.
One of the major constraints in Vietnam is the instability of electricity**. In June this year, a large-scale power outage hit northern Vietnam, which severely affected manufacturers' investment confidence. At the same time, the limitations of Vietnam's local industrial materials and production capacity, as well as its over-reliance on Chinese raw materials, also restrict the further development of its manufacturing industry. This means that Vietnam still has a long way to go in building a complete and mature industrial chain.
Faith is more precious than **.
Overall, Vietnam is expected to become a manufacturing powerhouse, but in addition to its geographical, policy and cost advantages, it also needs to solve many challenges, including technological innovation, industrial chain integrity, management experience, etc. A small screwdriver reveals not only the manufacturing industry, but also the daunting task that Vietnam needs to face in pursuing its dream of becoming the "factory of the world". Confidence is more precious than **, Vietnam needs to maintain a positive and enterprising attitude and continue to work hard to solve problems in order to win the favor of the global manufacturing industry.
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