How manufacturing in Vietnam will help targeting Chinese market?

With wages being about 30 percent of those in China and fairly low land use cost, Vietnam is an attractive manufacturing destination lately. The ASEAN Free Trade Agreement that China just signed eliminates import tariffs for thousands of products that now may be imported to China duty free. Manufacturing productivity in China remains higher than in Vietnam, however, it has narrowed significantly recently. Over 5,000 companies from Guangdong province have already relocated to Vietnam over the past three years, according to Hong Kong General Chamber of Commerce. Trans-Pacific Partnership Agreement which is currently under discussion with US, can bring significant amount of funding and technologies to Vietnam. It will upgrade Vietnamese import standards in textile industry to those at American level. If that happens, Vietnam will directly compete with China in that industry sector.