Manufactured in Vietnam instead of China? That's impossible! In fact, Vietnam's manufacturing might even be marginalized.
For decades, China’s advantage has lain in being the world’s low-cost factory—producing a wide range of goods from textiles to electronics at an astonishing scale.
Both domestically and internationally, there has been a prevailing view that as China’s labor costs rise, Southeast Asia and India—with lower labor costs—would inevitably become the destinations for China’s mid-to-low-end manufacturing outflows.
Indeed, in previous years, many enterprises relocated overseas. Aside from pressure from the U.S. on Chinese manufacturing, the biggest reason was labor cost. But in recent years, this trend hasn’t expanded—it has actually reversed, as these companies are quietly returning!
Why is that?
The answer is simple: China will never remain stuck in labor-intensive, low-end manufacturing forever. Instead, it continuously upgrades and transforms itself. Electric vehicles, batteries, robotics technology, artificial intelligence, aerospace, advanced manufacturing—these sectors are now becoming the most competitive industries globally.
Moreover, due to China’s vast territory and significant developmental disparities between its eastern and western regions, so-called “low-end” industries have not actually moved abroad. On the contrary, they’ve been strategically relocated to regions where they’re more urgently needed through national coordination.
Additionally, the Chinese government has long-term planning in place. Regional industrial ecosystems are developing rapidly, supported by massive investments in power infrastructure and renewable energy sources such as solar and wind power. As a result, China enjoys stable electricity supply, robust industrial support systems, predictable and consistent government policies, social stability, and highly skilled workers.
Therefore, most industries haven’t left at all—they’ve even attracted a surge of European companies that lost access to affordable electricity after the Russia-Ukraine war, shifting their production to China! The world is finally beginning to understand just how big a strategic picture China is playing:
China’s concept of “building a nest to attract phoenixes” is exactly this: all necessary industrial ecosystems are already in place; government policies are stable and predictable; electricity is reliable and extremely cheap. Isn’t this the paradise for manufacturing? Who would still consider moving elsewhere? Want to try venturing into Vietnam?
Vietnam primarily relies on China’s industrial chain, serving mostly as a supporting player. Attempting to break free from China’s industrial ecosystem and develop independent manufacturing capabilities? Vietnam has already hit a wall. India faces similar challenges—perhaps even more severe ones. After the recent U.S.-Iran conflict, the world has largely come to realize which nation is best equipped to withstand crises.
Thus, the current question circulating online is no longer whether Vietnam or India can replace China—but rather:
“What happens when China begins manufacturing the technologies that will define the future?”
Original source: toutiao.com/article/1870751225795612/
Disclaimer: This article represents the personal views of the author.