Key Takeaways of the Webinar "Is "Made in Vietnam" the New "Made in China"?"

The webinar "Is "Made in Vietnam" the new "Made in China''?", hosted by FiinGroup and InCorp, has successfully brought together 100+ industry leaders, directors, and managers to explore the future of Vietnam's manufacturing sector, Vietnam's evolving role in global supply chain, and whether "Made in Vietnam" can truly become the next "Made in China". 

With intensive research and in-depth experience, the speakers have provided insightful sharing, interesting discussion, and comprehensive answers for questions from attendees.  

Here are some key takeaways from the webinar: 

Vietnam has several favorable factors supporting manufacturing and has seen enviable growth    

☑️ Cost competitive (Labor, overheads)  

☑️ Suitable Infrastructure (Industrial parks, transport, logistics)  

☑️ Extensive Trade Agreements   

☑️ Government incentives  

☑️ Young Diligent Workforce  

☑️ Strategic location (ports, trade routes, Neighbour to China)  

☑️ Supply chain diversification by countries incl. China  

☑️ Most of FDI into Vietnam (63%) has been into manufacturing, boosting capability and confidence   

☑️ Focus on sustainable manufacturing & ESG: Vietnam signed for Net-zero by 2050 at Cop-26  

Few factors need to evolve to become a world-class manufacturing country (or compete with China)   

☑️ Much of current growth is led by labor-intensive manufacturing  

☑️ Shortage of hi-skilled labor and language barriers deter higher- value investors   

☑️ Productivity is lagging its Asian peers  

☑️ Economy unable to capture share of value-added as exports are very import-dependent   

☑️ Tariff headwinds: Large reliance on exports to US    

The Shift from China to Vietnam 

☑️ Diversifying supply chains (China+1 strategy): Foreign investors are choosing Vietnam to reduce over-exposure to China while maintaining regional market access.  

☑️ Growing focus on hi-technology & value-added sectors is attracting investors for low-cost    

☑️ Increasing FDI focused on manufacturing   

Challenges & The Road Ahead 

☑️ Impact of Recent Proposed Tariffs:  

If reciprocal tariffs (increase from 2.2% to 5.1%) are applied for Vietnamese goods imported into the US: Extra USD 4 billion tax to be paid   

If Vietnam reduces tariffs on US goods imported by Vietnam: Loss of USD 0.53 billion revenue  

☑️ Logistics Infrastructure: Further development to match China’s scale, for e.g. containerized shipping.  

☑️ Workforce upskilling: Investments needed in specialized training, automation and skill development.  

☑️ Embracing more digital business and e-commerce 

Overall, Vietnam may not yet fully replace China, but its intrinsic positives and manufacturing track record makes it a promising strategic hub for global supply chains. FDI inflows in the sector have been resilient and rising, that shows confidence by global investors and companies in this sector.   

A standalone destination or inclusion of Vietnam in China Plus One strategy is recommended.   

#FiinGroup #EnlightenTheMarket #LeadTheWayToSuccess #Webinar #Research #Consulting #Manufacturing # Processing #EntrySolutions #LocalInsights