More and more Chinese and international companies have been turning to southeast Asia, Vietnam in particular, in search of cheaper labor. In Vietnam, the minimum wage does not exceed $ 85 a month in the large manufacturing zones.
To witness this relocation trend, all you have to do is going to Bac Ninh, a city 40 kilometers north of Hanoi. A few years ago, there used to be large rice fields, but now they have been replaced by multinational companies and their local subcontractors.
Samsung’s Bac-Ninh-based factory is its largest worldwide, employing 9,600 workers. Canon employs 8,500 workers, whereas Foxconn, a Taiwanese electronics manufacturer, employs 5,600. The latter is the world’s largest maker of electronic components and the largest private company in China, employing 420,000 people.
“Vietnam has become a very competitive and dynamic country,” says a media consultant working at Foxconn’s headquarters.