Vietnam: An alternative?

iStock_000027186117_smalljpgAmid a tightening labor market and rising wage demands, manufacturing in China isn’t as cheap as it used to be.

The new dynamic has some U.S. firms looking for the next frontier in outsourcing, and the search leads, in many cases, to Southeast Asian upand-
comer Vietnam. “Vietnam will be the next China,” said Josh Feinkind, president of New York-based RefinedKind Pet Products, which has been producing in Vietnam for eight
years.

“Though it may not overcome China in terms of production volume, it will be a major production player in Asia, especially in labour-intensive production.”

The full article appears in The Monitor.  This report was prepared by HSBC Global Banking in December 2013 as part of its suggestions to clients that they seek alternative trade sources to China.