A recent report of the Economist Intelligence Unit (EIU) states that Vietnam has emerged as a low cost manufacturing base in Asia’s supply chain, beating India and China, doing much better on parameters like FDI policy, forex and trade controls and labour markets. It is preferred for the manufacture of hitech products too, due to its pool of low cost workers, and astute proliferation of FTA. For eg. under its FTA with the EU, wef Aug. 2020, its footwear exports to the EU now attract NIL import duty, as against 30% for other exporting nations, thus giving it a huge edge.
On a scale of 1 to 10, Vietnam is rated 6 for its FDI policy, with India and China at 5/5 each and at 7/3 for foreign trade and exchange controls, as against 6/4 for China and 5/5 for India. Its score for labour market too was better at 5/6, as against 5/4 for India and even in terms of infra deficit, while both Vietnam and India were lowly placed, it yet did better than India. Vietnam gives attractive incentives to foreign investors and also makes it easy for them to invest and do business in India. In this episode of the Business Tit-Bits, our Business Editor Mr Akhilesh Bhargava shares his take on the matter.
#EIU #Vietnam #FDI #India #China #SupplyChain
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