Abandoning China: In search of cheap labour, companies turn to Vietnam

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 A few years ago, there used to be large rice fields, but now they have been replaced by multinational companies and their local subcontractors.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.

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