In an interview with the South China Morning Post, construction company owner Weng Caibing, whose factory is located in Binh Duong, revealed the struggles that come with establishing a business outside his home turf.
Weng noted that back in the days, a reliable translator would cost around $400 dollars less than what translators today are asking for. He further explained that these days, it is harder to find a skilled Chinese-Vietnamese worker. "I'm still struggling to find the right person," he argued.
Traffic congestion is just among the many issues that businessmen in Vietnam are faced with. Analysts are expecting to see more traffic jams as companies in China move operations South.
Ho Chi Minh still leads in terms of cities with the highest foreign investments. Hanoi is second but Binh Duong is fast becoming a contender even if it still in third place. It is expected that Binh Duong investments will see a hike now that the top two Vietnamese cities are getting overcrowded.
Local workers have also expressed concerns about the growing competition as smaller Vietnamese manufacturers have a hard time enticing employees. Small factories are worried about reaching their monthly quota with few staff members to rely on.
Finally, business owners are concerned about the increase in industrial land prices in Binh Duong over the last three years. Within the said period, prices hiked by a whopping 80 percent, adding financial burdens for smaller companies.
The Vietnamese economy expanded by 7.1 percent in 2018, driven largely by trade tensions between China and the U.S. wherein businesses in China moved to escape Trump tariffs.
Last week, it was forecasted that Vietnam's economy could overtake Singapore if it continues to grow within the next 10 years. Many economic experts do not have doubts about the country's capability now that businesses are moving from both China and the U.S.
The latest data revealed that foreign investments into Vietnam reached $16.74 billion amid the China-U.S. trade war. Fear of increased tariffs by U.S. President Donald Trump has forced many firms in China to move to Vietnam.
New predictions further proved earlier indications that Vietnam will become the top winner in the trade dispute between two of the world's largest economies. It remains to be seen whether the Vietnamese government will move to help ease business worries.
By A.N. Basil - Business Times