The current stagnation in Vietnam's manufacturing sector highlights the constraints of the country's efforts to transition away from China.
- 5 tháng trước
Vietnam is now experiencing a significant decline in its manufacturing sector, which may be attributed to the reduced global demand. This slump is considered to be the most severe in the last ten years, indicating that the anticipated benefits of diverting supply chains from China to Vietnam have not been fully realized by the Southeast Asian nation.
The current data indicates a decline in the shipment rates of Samsung phones and Adidas shoes in the nation, which is a prominent manufacturer of electronics and textiles. Furthermore, the total exports saw a significant decrease of 10% during the period from January to August, compared to the previous year. This is a significant disparity when compared to the 17% expansion shown in the previous year.
An advantageous consequence is that manufacturers are reducing their workforce at a period when they traditionally prepare for the influx of Christmas orders. According to the national statistics office, in the second quarter, around 300,000 individuals in Vietnam were compelled to engage in informal economic activities, such as fishing, farming, or domestic cleaning, as a consequence of the decline in industrial employment.
Fashion retailer Uniqlo and semiconductor software developer Synopsys have recently intensified their activities in Vietnam due to concerns over geopolitical dangers in neighboring China. However, with the prevailing global economic downturn, the Southeast Asian nation has encountered challenges in the form of bureaucratic obstacles and frequent power interruptions, which have significantly impeded productivity across several sectors.
The current data indicates a decline in the shipment rates of Samsung phones and Adidas shoes in the nation, which is a prominent manufacturer of electronics and textiles. Furthermore, the total exports saw a significant decrease of 10% during the period from January to August, compared to the previous year. This is a significant disparity when compared to the 17% expansion shown in the previous year.
An advantageous consequence is that manufacturers are reducing their workforce at a period when they traditionally prepare for the influx of Christmas orders. According to the national statistics office, in the second quarter, around 300,000 individuals in Vietnam were compelled to engage in informal economic activities, such as fishing, farming, or domestic cleaning, as a consequence of the decline in industrial employment.
Fashion retailer Uniqlo and semiconductor software developer Synopsys have recently intensified their activities in Vietnam due to concerns over geopolitical dangers in neighboring China. However, with the prevailing global economic downturn, the Southeast Asian nation has encountered challenges in the form of bureaucratic obstacles and frequent power interruptions, which have significantly impeded productivity across several sectors.