AUSTRALIA & ASIA
China remains high , many supply chain executives are increasingly concerned about geopolitical turmoil , and are “ de-risking their supply chain platforms ” by seeking other countries that can offer an attractive manufacturing base . Although Thailand and Malaysia were often seen as alternatives in Asia Pacific , Vietnam has truly become the darling of supply chain executives looking for such diversification .
VIETNAM – THE SUPPLY CHAIN DARLING OF SOUTHEAST ASIA The world ’ s largest emerging economies – including Russia , Brazil and China – have been stumbling . At the same time , Vietnam ’ s economic growth was 6.7 percent in 2015 , making it among the fastest growing markets globally and one of the hottest markets in Southeast Asia – particularly its burgeoning manufacturing platform .
Vietnam has a young and vibrant workforce with a strong educational footprint that will allow the country ’ s labour force to grow by more than 1 million people per year . This is in stark contrast to other Southeast Asian countries which are experiencing shrinking labour pools . In addition , Vietnam is part of the Trans-Pacific Partnership , a US-led trade deal which is proving quite attractive for foreign direct investment ( FDI ) into Vietnam . The treaty will cut some 18,000 tariffs in 12 countries , helping Vietnam increase exports of locally made products and find new markets .
Exports of manufactured products in Vietnam will continue to expand , given that 66 percent of disbursed FDI in the first nine months of 2015 was directed into manufacturing . Yet , although companies are anticipating double-digit growth for the foreseeable future , most
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