• About us
  • Careers
  • Brand Partnerships
TFI Official Merchandise
TFI हिन्दी
TFI Global
Wednesday, March 29, 2023
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Hanuman Chalisa event

    From small beginnings come great things—the Hanuman Chalisa event is proof

    Amplifiers of Khalistan are tight-lipped on the UK’s balkanisation

    Amplifiers of Khalistan are tight-lipped on the UK’s balkanisation

    Rahul Gandhi

    A bigger conspiracy lies behind Rahul Gandhi’s ouster

    Renuka Chowdhury will file a defamation case against PM Modi

    A point-by-point rebuttal on Renuka Chowdhury’s rants

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    Campa Cola

    Reliance’s foray into Indian Soft Drinks: Can Campa Cola make a comeback?

    Inflation

    Inflationary Pressures Continue to Challenge Economies Worldwide, Central Banks Implement Measures to Control Rising Prices

    Portfolio Management Services types

    Types of Portfolio Management Services

    Gadkari’s new big plan

    Gadkari’s new big plan

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    Khalistan – Pakistan’s only successful project against India

    Khalistan – Pakistan’s only successful project against India

    Defence Ministry to boost IAF’s capabilities

    Defence Ministry to boost IAF’s capabilities

    ASEAN’s Defence Market: India and South Korea Compete for Supremacy

    ASEAN’s Defence Market: India and South Korea Compete for Supremacy

    From Pipeline to Power Grid: India and Bangladesh Forge Stronger Energy Bonds

    From Pipeline to Power Grid: India and Bangladesh Forge Stronger Energy Bonds

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    New Buddhist leader

    Dalai Lama’s unpredicted move for new Buddhist leader, leaves China baffled

    Amplifiers of Khalistan are tight-lipped on the UK’s balkanisation

    Amplifiers of Khalistan are tight-lipped on the UK’s balkanisation

    MiG-29K

    Replacing MIG-29K: India’s long-term solution for carrier-based fighters

    Sri Lanka US

    The Hidden Hand of US Influence in Sri Lanka: Cold War Strategies Revisited

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • History
    • Indology
    Yes, Akbar was more Naseeruddin Shah and not even one bit of Hrithik Roshan

    Yes, Akbar was more Naseeruddin Shah and not even one bit of Hrithik Roshan

    Murud Janjira Fort History

    Murud Janjira Fort: A Testament to India’s Maritime History

    Qutub Minar truth

    The truth of Qutub Minar

    Hindustan Republican Association

    100 years of Hindustan Republican Association: A Journey of Courage and Conviction

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Food
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Yami Gautam

    Why Yami Gautam should get films more often

    Border-Gavaskar Trophy

    India retain the Border-Gavaskar Trophy after four-Test series

    Bheed: One of the worst films in the history of mankind

    Bheed: One of the worst films in the history of mankind

    10 Weight loss tips for beginners

    Shed Those Extra Pounds: Top 10 Weight Loss Tips for Beginners

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Hanuman Chalisa event

    From small beginnings come great things—the Hanuman Chalisa event is proof

    Amplifiers of Khalistan are tight-lipped on the UK’s balkanisation

    Amplifiers of Khalistan are tight-lipped on the UK’s balkanisation

    Rahul Gandhi

    A bigger conspiracy lies behind Rahul Gandhi’s ouster

    Renuka Chowdhury will file a defamation case against PM Modi

    A point-by-point rebuttal on Renuka Chowdhury’s rants

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    Campa Cola

    Reliance’s foray into Indian Soft Drinks: Can Campa Cola make a comeback?

    Inflation

    Inflationary Pressures Continue to Challenge Economies Worldwide, Central Banks Implement Measures to Control Rising Prices

    Portfolio Management Services types

    Types of Portfolio Management Services

    Gadkari’s new big plan

    Gadkari’s new big plan

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    Khalistan – Pakistan’s only successful project against India

    Khalistan – Pakistan’s only successful project against India

    Defence Ministry to boost IAF’s capabilities

    Defence Ministry to boost IAF’s capabilities

    ASEAN’s Defence Market: India and South Korea Compete for Supremacy

    ASEAN’s Defence Market: India and South Korea Compete for Supremacy

    From Pipeline to Power Grid: India and Bangladesh Forge Stronger Energy Bonds

    From Pipeline to Power Grid: India and Bangladesh Forge Stronger Energy Bonds

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    New Buddhist leader

    Dalai Lama’s unpredicted move for new Buddhist leader, leaves China baffled

    Amplifiers of Khalistan are tight-lipped on the UK’s balkanisation

    Amplifiers of Khalistan are tight-lipped on the UK’s balkanisation

    MiG-29K

    Replacing MIG-29K: India’s long-term solution for carrier-based fighters

    Sri Lanka US

    The Hidden Hand of US Influence in Sri Lanka: Cold War Strategies Revisited

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • History
    • Indology
    Yes, Akbar was more Naseeruddin Shah and not even one bit of Hrithik Roshan

    Yes, Akbar was more Naseeruddin Shah and not even one bit of Hrithik Roshan

    Murud Janjira Fort History

    Murud Janjira Fort: A Testament to India’s Maritime History

    Qutub Minar truth

    The truth of Qutub Minar

    Hindustan Republican Association

    100 years of Hindustan Republican Association: A Journey of Courage and Conviction

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Food
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Yami Gautam

    Why Yami Gautam should get films more often

    Border-Gavaskar Trophy

    India retain the Border-Gavaskar Trophy after four-Test series

    Bheed: One of the worst films in the history of mankind

    Bheed: One of the worst films in the history of mankind

    10 Weight loss tips for beginners

    Shed Those Extra Pounds: Top 10 Weight Loss Tips for Beginners

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
No Result
View All Result

HOME » Politics » Opinions » As companies flee China, Vietnam is taking away the cake India so desperately wishes to have

As companies flee China, Vietnam is taking away the cake India so desperately wishes to have

India must accept the Vietnamese challenge

Amit Agrahari
by Amit Agrahari
25 April 2020
in Analysis, Opinions
0
Vietnam
143k
VIEWS
Share on FacebookShare on Twitter

In the last few years, the companies around the world which have made China their factory have either shifted out of the country or mulling over the idea. Given the rising cost of labour and the increasingly interventionist approach of the government after Xi Jinping came to power, moving out is the best option for the companies. The outbreak of Coronavirus from China will only accelerate the flight of the companies to India and Southeast Asian nations like Vietnam.

The Indian government was hoping that these companies will ultimately shift to India, given the young demographics and cheap labour. But, as per a study by Nomura Group on 56 companies shifting production out of China, only three of these relocated to India while 26 went to Vietnam, 11 to Taiwan, and eight to Thailand.

Southeast Asian countries and the tiny island of Taiwan are winning at welcoming the flight of companies from China, while India, with a young population and cheap labour, is losing the game. 

Most of these companies are shifting to Vietnam, a Communist country to the South of China with a long sea coast facing the busy South China Sea. There are many factors which help the country with a population of around 10 crores in attracting new companies. It has geographical and cultural proximity with the Communist giant, and even the political system is similar- a single-party Communist state. The companies prefer autocratic Communist countries as there is no bureaucratic lethargy and democratic red tape in these countries.

Vietnam also started liberalizing its economy in the 1990s, just like India, and since then, the country has grown at an average rate of above 6-7 per cent, very similar to India. In the last three decades, it had not overtaken India in terms of average economic growth but in the last few years, the tiny country is suddenly leapfrogging, thanks to its geographical proximity with China.

But there are many other things which Vietnam did right, like minimizing red tape, investment in infrastructure, education, and health. The country started economic liberalization in 1986- exactly a decade after China- and since then invested heavily in primary education. An average Vietnamese is more skilled than average Indian, thanks to the skill-based education system. The country has less volatile currency and has been competing closely with India in the World Bank’s Ease of Doing Business rankings. And therefore, given all these advantages, the companies rather prefer to move Vietnam than India.

The primary advantage of the tiny country is its geographical, cultural, and political proximity with China and its system. But, if India is willing to compete, the Modi government must focus on land, labour, capital, and judicial reforms.

The companies moving to Vietnam know that they will find a conducive environment like China in the country, given the authoritarian nature of the political system. In Vietnam, the court and the executive are not equal but under the legislative, which is filled with only single party members. Therefore, once the legislative clears a project, there are no additional hurdles.

On the other hand, in India, even after a project is cleared by the government, the companies have to deal with the farmers for factory land, lethargic and corrupt bureaucracy, local mafia, mafia-like NGOs, local trade unions, the government’s obsolete labour laws- which Modi government is trying to reform, to successive court cases and petitions by activists like Prashant Bhushan, and various regulatory bodies, and whatnot.

How India and Vietnam jointly turned flourishing Chinese city into a ghost town

If the Modi government does not want to lose a golden opportunity like this once again then it must fast track the land, labour, capital, and judicial reforms from the war room to make sure that the companies fleeing China move to India, not Vietnam. 

Tags: ChinaVietnam
Share716TweetSend
Previous Post

‘Hit body with UV-light, inject disinfectant,’ Donald Trump’s COVID-19 cure throws USA into a panic

Next Post

Pragmatism in west, Fanaticism in east: Ramzan draws an invisible line to expose freshly converted zealots among Muslims

Amit Agrahari

Amit Agrahari

Engineering grad but Humanities and social sciences are my forte. Avid reader of religious Scriptures (Especially Hindu), Lord Shiva devotee

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

  • Most Read
  • Comments
  • Latest
Xi Jinping, coronavirus, Shinzo Abe, china, Japan, coornavirus, COVID-19, Wuhan Virus

‘Pack up and get out of there,’ Japan to spend $2.2 billion to get Japanese companies to exit China

9 April 2020
ajay devgn karan johar

The man who bullied the Bully – How Ajay Devgn made Karan Johar’s monopoly a joke and forced him to apologize

22 June 2020
Huawei, China, Trump, USA, Xi Jinping

‘Our survival is at stake now,’ Chinese Telecom giant Huawei crumbles after US ban on Semiconductor exports

19 May 2020
T-Series Sonu Nigam Divya Khosla Kumar Bhushan Kumar

T-Series forced to take down Atif Aslam’s video, Divya Khosla trolled. T-Series has a bad day in office

25 June 2020
Meat Ban

A Jain responds to Meat Ban in Mumbai

Public Sector Bank, Government, Bill

Dear bank employees, continue your stride but PSBs will be privatized

anti-Hindi

Anti-Hindi Forever?- In search of a National Language!

Dear Liberals – your Beef Parties are not protests, they just intend to displease the Majority

Dear Liberals – your Beef Parties are not protests, they just intend to displease the Majority

Yes, Akbar was more Naseeruddin Shah and not even one bit of Hrithik Roshan

Yes, Akbar was more Naseeruddin Shah and not even one bit of Hrithik Roshan

28 March 2023
Yami Gautam

Why Yami Gautam should get films more often

28 March 2023
Murud Janjira Fort History

Murud Janjira Fort: A Testament to India’s Maritime History

28 March 2023
Campa Cola

Reliance’s foray into Indian Soft Drinks: Can Campa Cola make a comeback?

28 March 2023

Popular This Week

Khalistani
Politics

No More Tolerance for Khalistanis: India’s Stand Against International Terrorist sympathisers

by Shubham Bajpai
22 March 2023
Khalistani
Geopolitics

After India’s veiled warning, countries around the world crack down on Khalistanis.

by Shubham Bajpai
23 March 2023
Renuka Chowdhury will file a defamation case against PM Modi
Opinions

A point-by-point rebuttal on Renuka Chowdhury’s rants

by Paurush Gupta
26 March 2023
Tanishq
Culture

A stupid Ad and a dumb explanation: What Tanishq lost in last 48 hours?

by TFIPOST News Desk
14 October 2020
Rahul Gandhi
Analysis

A bigger conspiracy lies behind Rahul Gandhi’s ouster

by Paurush Gupta
27 March 2023

©2023 TFI Media Private Limited

  • Terms of use
  • Privacy Policy
  • Sitemap
No Result
View All Result
  • Premium
  • Politics
    • Analysis
    • Opinions
    • Trending
  • Economy
    • Business
    • Finance
  • Defense
    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
TFI Official Merchandise
TFI हिन्दी
TFI Global
  • About us
  • Careers
  • Brand Partnerships

©2023 TFI Media Private Limited

Follow us on Twitter

and never miss an insightful take by the TFIPOST team

Follow @tfipost