How has Vietnam become an alternative to China when choosing a destination for investment?

China’s business environment has changed rapidly in recent years due to rising labor costs. As a result, more and more foreign investors have started to search for alternative markets. Vietnam stands out as the country most often offered as an alternative to China for manufacturing activities because of its demographics, wages, and relative political stability. Factory wages in Vietnam, for one, are less than a quarter of those in China. In fact, such a trend is likely to prevail into the near to medium term due to divergent levels of urbanization between China and Vietnam. Furthermore, Vietnam’s active engagement in various free trade agreements and trade blocs such as WTO has also brought unique opportunities for investors in Vietnam.