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Friday, 19 Apr 2019

24/5/2011 NEWS: VIETNAM – A Sourcing Destination?

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Vietnam has long been reported as potentially the next China, in terms of being a lower cost manufacturing hub. But, current statistics show that this may not come true. Vietnam has once again demonstrated that it has one of the world’s fastest rising consumer price index (CPI). The previous peak was 19.9% in December 2008, and this month it has once again touched this peak at 19.8%. The Vietnam Government is desperately issuing new policies to curb this price rise, but this inflationary pressure seems ready to stay and investors have to be wary of its future path. At this juncture, it is still pointing upwards.

The Vietnamese economy has not demonstrated its ability to be a sourcing agent’s haven as its business environment is clouded with too much uncertainties. One of such uncertainty is the labor strikes that are taking place across the country. The total number of strikes within the first 3 months of this year has already exceeded the total for all of 2010.

Written by: Jonathan Tee