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China was literally able to lift hundreds of millions of people out of poverty with all the manufacturing that was moved there. I think most people don't unders
by Sakos 4y ago
China was literally able to lift hundreds of millions of people out of poverty with all the manufacturing that was moved there. I think most people don't understand anything about economics. Vietnam absolutely wants and will benefit from an increasingly industrialized economy.
edit: I'm seeing a number of comments pointing out how these are companies owned by Koreans. Which maybe isn't optimal, but the potential for knowledge transfer coupled with investment in infrastructure and logistics chains is a great opportunity that just needs to be used well.
- usrusr 4y agoNo doubt about any of that, but China played a really tough game to become more than just a cheap workbench. All those forced joint ventures, and the immense discipline required to make those become more than just easy profit-share for some lucky ones who know the right people. They did a lot of things extremely well to get to where they are now. That won't be easy to replicate. Particularly when one of the partners knows that game so well. It could end as colonization 2.0.
- koheripbal 4y agoMost of those tough rules emerged well after the boom in Chinese manufacturing. It's not required for achieving what they did.
- dylan604 4y agoHow long before Vietnam pulls a move from China's playbook where they start to manufacture things based on the plans foreign companies brought them and sell the product under Vietnamese company brands?
- echelon 4y agoThat's just the algorithm. Every nation leveraging manufacturing for growth will do this. When it eventually gets too expensive for native workers, manufacturing moves again [1]. Except the locals now have a sizable middle class and knowledge economy, and there are high value industrial processes left behind: automotive, aerospace, scientific, etc. The whole world is growing up, and wealthy nations are paying for it (because they love low cost goods). It's a win-win situation. ([1] doesn't mean every nation shouldn't think defensively about its own supply chain for essential inputs and outputs.)
- nine_k 4y agoIt's interesting how e.g. Germany retains quite sizable manufacturing which is not going anywhere, and actually benefits from the local highly trained, highly paid workforce.
- rasz 4y ago>Germany retains quite sizable manufacturing which is not going anywhere It might after this winter. Its hard to manufacture without energy and resource input.
- upupandup 4y agoThey've already pulled this on Samsung but it has nowhere to go. Where else can it find tens of millions of young workers?
- xenospn 4y agoSE Asia has plenty.
- spaceman_2020 4y agoSE Asian workers, outside of Phillippines, are too expensive for large scale, low end manufacturing. Malaysia and Thailand are already middle income countries and Indonesia is getting there as well.
- upupandup 4y agoI don't think the salaries are very high in those countries you mentioned. Hardly up there with East Asia (Ecxept China)
- FpUser 4y agoI actually do not see much wrong about it. The area has been virtually raped by the West at one point. This is at least some compensation
- MangoCoffee 4y agothey already did. VinFast
- sumedh 4y agoThe companies who outsource dont really care about that, if they did, they wont do the outsourcing in the first place.
- upupandup 4y ago> hundreds of millions of people out of poverty This is false because majority of Chinese citizens do not make more than $1000 per year or something very low. The average GDP is something like $6000, which is far below its neighbours. Even the ones that do make more, while not in complete poverty, they are barely live due to expensive housing and cost of living.
- thrdbndndn 4y agoI think most of people simply don't know the reality of developing country. They often form ideas that have good intent, but sound very out of touch for people actually from these countries.
- biophysboy 4y agoManufacturing for export with Western companies was central to China's rise - same goes for Korea, Japan, and Taiwan - but there was more to it than comparative advantage/labor arbitrage. There was a lot of heavy-handed government action: land reform dispossessing wealthy families, aggressive/protectionist state financing, etc.
- hahaxdxd123 4y agoSomeone read "How Asia Works"!
- biophysboy 4y agoYa got me. In my defense, its not the only book on Asia I've read