Vietnam hits peak capacity, an ASEAN-wide strategy is essential.
Well that didn't take long! The South China Morning Post reports that " Vietnam’s infrastructure networks, labour pools, and local suppliers are all being “pushed to their limit” as investment continues to climb in traditional manufacturing hubs around Ho Chi Minh City and Hanoi. " .
Being mindful that Vietnam's population is just under 100 million (around 95 million) , less than a tenth of China's 1.38 billion, China is not sweating bullets over their neighbours being able to take much of their lunch away. However it also means the opportunities to diversity away from Chinese supply in the current trade war are a lot more limited as even utilizing all ASEAN countries combined it is difficult to match the manufacturing capacity of the behemoth that is China.
I've been out to Vietnam and maintain a network there, between ongoing intel and the on-the-ground experience and they quite far behind when it comes to product quality, higher value chain output and infrastructure. Those looking at the lowest costs are missing the forest (actually jungle) for the trees. Let us be your guide throughout the jungle as well as your financing partner. The opportunities are great however they are also not limitless.