Vietnam Is Still Hard To Become A New Production Base For Japanese Enterprises.

"We do not recommend going to Vietnam to develop" - in December 2008, the Japanese IT company personnel who came to Vietnam for consultation came up with the advice of the head of the Hu Zhiming Municipal Branch of a big Japanese bank.

Most of the production base of the IT company is located in China. After the 5. 12 earthquake in Sichuan, they felt "concentrated in China and had risks", so they came to the possibility of consulting Vietnam.

However, bankers have warned them that "there are many parts manufacturers in China undertaking Japanese enterprise orders all the year round, and have certain technical strength.

But in Vietnam, not only are parts and components difficult to purchase, but also logistics networks such as highways are lagging behind, emphasizing that it is hard for Vietnam to replace China as a new production base at present.

"Hanoi and other northern Vietnam have been included in the Southern China economic circle of China," said Hu Zhiming, an overseas investment consultant at JETRO, Japan's Trade Promotion Agency ().

It is reported that many parts produced in Guangdong, China are assembled near Hanoi, where labor costs are relatively low.

With the rise in wage levels in Vietnam, workers' strike is demanding more pay increases.

Many Taiwan and South Korean enterprises such as local textile industries have begun to consider moving to countries such as Bangladesh and Pakistan with lower wages.

The global economic recession, which started in the financial crisis, has also had a direct impact on Vietnam.

The huge trade deficit led to a significant depreciation of the Dong shield. Vietnam was once on the verge of financial crisis after the spring of this year.

The International Monetary Fund (IMF) predicts that Vietnam's economic growth rate, which has maintained about 8% in recent years, will drop to 5.5% in 09.

Vietnam's expatriates, who fled to Vietnam and other places in Vietnam due to the Vietnam War, have been repatriated to the motherland.

But with the outbreak of the financial crisis, the remittance amount of overseas Chinese may decrease.

Many people still believe that the Vietnamese economy will continue to grow at a high speed for a long time. It is believed that even in the current recession, the possibility of falling into crisis is still low.

But local financial stakeholders say that some foreign companies have cancelled government approved investment plans because of the worsening economic situation.

In December, the Vietnamese government and the central bank announced a $1 billion stimulus package and interest rate cuts, demonstrating the determination to ensure economic growth.

However, such a rapid financial easing policy will inevitably push up the already serious inflation rate after 07 years.

The government's macroeconomic regulation and control need to be cautious.

Yang Jing: editor in charge