Monday, May 19, 2014

VIETNAM SUPPLY CHAIN RISK

Vietnam--new situation for supply chain risk --
Vietnam unrests shakes supply chain Written by

Vietnam unrests shakes supply chain
Up to 21 people are said to have died and nearly 100 injured as a result of riots which have spread across the country and have seen crowds set fire to industrial parks. The unrest was sparked by anti-Chinese protests over disputed territory.
Vietnam has a thriving manufacturing industry which has kept the economy going, and currently is responsible for 17 per cent of its GDP. As its domestic economy remains under-performing, non-oil exports from foreign companies increased by 27 per cent last year, and now accounts for two-thirds of all exports.
If violence spreads further, foreign investors will have to increase their political risk elements for working in Vietnam, but there are few other attractive options for foreign investors in Asia.