Factories in vietnam : new issues for internationale trade
Nowadays, it seems to be the turn of Vietnam to run the world! In fact, it seems that China, this international leader, well known for its productivity and competitiveness, is loosing its workers and many giants as Samsung or Foxconn (Apple’s partner) which are progressively attracted by destinations like India, Bangladesh and Vietnam. Indeed, Vietnam is becoming more and more attractive especially for foreign investors and many different companies. Then, factories are soaring and today, it is about the Vietnamese “Sillicon Valley”!
An economic development that faces the competition
This situation has a direct and unprecedented impact on the Vietnamese economy by creating tens of thousands jobs. It has allowed the middle class emergence. With the most open economy in the world, international trade represents more than 100% of Vietnam’s GDP (twice that of China). Free trade agreements (Trans-Pacicfic Partnership Agreement and the Free Trade Agreement between the European Union and Vietnam) have been a milestone for the economy since the lifting of the embargo by the US which have become the country’s largest trading partner.
Exceptional growth in South East Asia has been registered, suggesting that Vietnam can dethrone China and become the “new factory of the planet”. According to the estimates of the daily newspaper The Star Online, future seems to be encouraging for the country which will remain one of the most dynamic economies in the world with an intensification of international economic flows. Indeed, economic activity, more and more attractive, often appears as one of the favorites of South-East Asia, according to the agency Bloomberg. Several major factors have contributed to this economic growth. Among them, there is the growth of investments, in particular foreign capital, private sector development, the increase of the population’s incomes but also the expansion of factories.
New horizons for the industrial sector
Industry is the main driving force of growth in Vietnam. This sector generates employment for more than a fifth of the population and with the arrival of large groups and foreign capital, these figures can only increase.
Nowadays, we can also talk about the modernization of the factories, which increasingly integrate more complex and technical manufacturing processes. Giants like Nike have seen opportunities to relocate part of their production. The Vietnamese textile industry, for example, is the most developed in Southeast Asia, but there are also food, furniture, plastic and paper industries that are very present in this sector. However, one problem remains, working conditions often have a bad reputation. To cope with this situation, organizations have put in place systems to ensure that workers have the conditions they deserve. Indeed, the promotion of decent work in Vietnam is a major challenge defended and controlled by the program “Travailler bien Vietnam” which currently covers 165 factories and nearly 250,000 workers. It is about helping companies by advising them and developing improvement plans. Within the factories, committees provide a dialogue between leaders and workers. Other action plans are proposed by the BSCI (Business Social Compliance Initiative) but also a common plan of action to improve working conditions abroad.
By this way, Vietnam is becoming a reference ! It is about quantity and quality and it gives lots of new horizons to the country.