So much for the great Vietnamese supply chains that were going to replace China’s and save globalization.
Over the past few years, analysts and consultants have eagerly pondered whether the Southeast Asian nation would edge in on its northern neighbor’s manufacturing prowess and export exuberance. Vietnam was seen as one of the biggest beneficiaries of the U.S.-China trade conflict.
Recently, however, Vietnam’s allure as version 2.0 of the world’s factory floor has receded sharply. News trickling out of the country doesn’t bode well for companies looking to expand existing operations or set up new ones there. Industrial production fell sharply in January, as did the number of those employed in the sector. Manufacturing activity contracted.