Gartner survey: 33% of companies are moving their supply chains out of China

[BHarwana]

Economy is dynamic.
Look, Vietnam just signs off FTA with EU. If you are a businessman wanting to do more business with EU, what would you do?

I will have to compare FAT with rest of FAT around the world then I will compare labor cost transport cost availability of raw materials & there are 100k factors which will effect my decision. I will see where is best tech available to help my business where can I get raw material with out hurdles.

Economy is not static it is a like a dynamite, never stays the same forever. If you are not quick enough you are out of business tomorrow.
Look, we just sign off FTA with EU. If you are a businessman wanting to do more business with EU, what would you do?

a) you stay put in your country with high tariffs and import restrictions.
b) you move to Vietnam.

Why would I move to Vietnam for just FAT sorry there are 1000 more things I need which should be available to me. I will have to check corruption then I will have to see if your domestic market is big enough for me or not. What is the buying power of your people. There are so many factors that will effect my decision.

 

[Viet]

I will have to compare FAT with rest of FAT around the world then I will compare labor cost transport cost availability of raw materials & there are 100k factors which will effect my decision. I will see where is best tech available to help my business where can I get raw material with out hurdles.

Sure, as business you do calculations. You factor in all components; labor costs, market access, availability of capital, political landscape, resources. That’s not new.

If labor costs rise, market access becomes difficult, even if you have best engineers, best technology, lots capital, you will have to make decision: move or not move. What’s the point if you produce wonderful cars but you can’t sell?

 

[BHarwana]

Sure, as business you do calculations. You factor in all components; labor costs, market access, availability of capital, political landscape, resources. That’s not new.

If labor costs rise, market access becomes difficult, even if you have best engineers, best technology, lots capital, you will have to make decision: move or not move. What’s the point if you produce wonderful cars but you can’t sell?

Every thing sells. Selling is the job of marketing. Read the top article in OP it clearly says that this is survey and expect business to move in 3 to 4 years and yet it is being sold here as it has already happened, that is called marketing.

 

[Viva_Viet]

My friend please understand companies are never trigger happy they wait for decisions to mature and then make moves. It is never a mathematical equation. Things happen slowly over time & many decisions are reverted & all the big boys know this. Business coming to Vietnam or any other country will have 1000s of other reasons behind it. For example I am a producer in China, if USA sanctions China I will never leave China but will take loans and built another factory in USA when dust settles I will asses where is my production vetter and will run that plant & shut rest. The companies who have multiple plants will do this.

U should know that The price for made in US products are too high and impossible to sell. U will go bankrupted.

Do u know that US has to send materials to make PPE to VN instead of manufacturing them in US during Covid pademic ?? Why US has to do that ?? Bcs made in US PPE is too expensive and US hospitals, US ppl cant buy wt that price. US also dont wanna keep letting CN manufacturing PPe for them. Thats why sending materials to VN and manufacturing there is the ONLY option.

U can try to manufacture PPE in US and sell now during Covid, I bet that u will go bankrupted cos No hospitals will buy ur made in US PPE due to super high price.

 

[Viet]

Every thing sells. Selling is the job of marketing. Read the top article in OP it clearly says that this is survey and expect business to move in 3 to 4 years and yet it is being sold here as it has already happened, that is called marketing.

3 or 4 years is a usual time that takes between „hey I want to move to a more favorite country“ to „ok today we announce we are pleased to open here a factory“.