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Analysis of Changes in Comparative Advantages of the Manufacturing in Vietnam and Comparison with China

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  • Mai, Nhat Chi

Abstract

With the process of Vietnam's reform and opening up, Vietnam's economy has made remarkable achievements. Vietnam's manufacturing industry, taking advantage of the new liberal policies, has also achieved rapid development. Sufficient and cheap labor force, advantageous geographical location, preferential foreign investment policies, and friendly international trade environment with the technological upgrading of manufacturing industry are all the advantages of Vietnam in attracting manufacturing industry. However, there are structural difficulties in the Vietnam's economy. Vietnam's economy is highly dependent on foreign trade and foreign investment, and its trade commodities are mainly assembly and processing with low added value. Compared with China, Vietnam also has obvious disadvantages in the scale of domestic market and supply chain. To some extent, Vietnam's manufacturing industry is integrated into China's supply chain network.

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  • Mai, Nhat Chi, 2021. "Analysis of Changes in Comparative Advantages of the Manufacturing in Vietnam and Comparison with China," OSF Preprints e9avy, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:e9avy
    DOI: 10.31219/osf.io/e9avy
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