China is no longer the only option for manufacturers, opportunities have been spilling over China’s borders and her neighbors are prospering. Take for example Vietnam, now a member of the WTO, moving rapidly from communism to capitalism, Vietnam’s learning fast from China & India’s mistakes. At 8.4% GDP growth, its now the second fastest growing economy after China, she exports nine times as much to America as she imports from America.

Simultaneously, Vietnam is also going through the same transformations as India and China went through in the last decade – Taiwanese, Singaporean, Korean, Chinese & American companies are pouring in billions, overseas Vietnamese are returning with fluent English and american entreprenural skills, and multinationals are already feeling the brunt of a lack of skilled labour, as a result salaries are sky rocketing 50% a year.

Further, Vietnam produces and uses more cement than France, its former colonial ruler, both Ho Chi Minh city and Hanoi’s stock markets have more than doubled in a year and although crippled with corruption, infrastructure is going the Chinese way. With a two child policy, Vietnam has ensured that they will have a sufficient consumer base in the furtur, while not suffering from population problems like India, or China’s little emperors.

Regards
Rajit