Manufacturing isn’t coming to India big time, because companies that want an alternative to China prefer Vietnam. But if the mountain won’t come to Mohammed…
www.deccanherald.com
Seems we're more talk than substance
Samsung Display Co plans to invest $1.8 billion in a new factory in northern Vietnam to produce OLED displays for automobiles and technology equipment. The facility will be located in Yen Phong industrial park, Bac Ninh province, raising Samsung's total investment in the area to $8.3 billion...
m.economictimes.com
Vietnam's GDP growth in Q4 2024 is projected to hit 7.4 per cent in a more optimistic scenario, meeting the government's 7-per cent target set for the year, the Vietnam Institute...
www.fibre2fashion.com
We have substance but it's not as much as we'd like
China + 1 means not focusing assembly in China but having a second source, it doesn't mean moving away from China since they don't allow imports of finished articles that easily, so there will be domestic assembly plants always.
Therefore the trend is to diversify production sites, not concentrate in one geography, therefore it's not mfg moving from China to India, it's moving from China to Vietnam, Thailand, Malaysia,India, Indonesia, Mexico etc etc.
Now that we know this Vietnam will always be the clear winner,
- They are a chota China with the same Coomie top-down govt, no hassles for bijli, zameen etc, no panga of worker hartal
- The investment is focused on North Vietnam with strong road and rail links to China, also a Port,
- They also take it in the ass for dhandho and have no panga with China, they are not a threat to US at all so they don't do drama with them either.
- They also have FTAs with the rich and paleskinned nations, they ask for concessions for their goods, we ask for concessions for our colonialist immigrants
Anyway one big drawback of Vietnam is that it is a low population country in comparison to India and is dependent on exports, we don't have those issues, So the India advantage is that we have enough scale to justify Local Assembly and later on you can get into exports also, which the Govt gives #PhoolSapport.
Therefore Apple still has China as main site for it's iPhone production, which is their high-volume product line, while India is the #2 site, since they are seeing the future potential of the Indian market AND any exports they currently do.
Same goes for Samsung where Vietnam is the main site for Global export( they got lynched in sales in China to Cheenq companies across most of their products, so they left ) but they also have the Yuge facility in Noida just for smartphones which ofc they sell a lot off here, and they export also.
India has the benefit of being a "large market" like any other 100mn+ population country like Brazil which is moderately wealthy, you can do sarkari armtwisting of tarriffs and all and have local assembly, that is a good foot in the door but not enough, we need to push exports once this is done.
Also like karn said the author of the first article is a literal corpo finance shill, he's just peddling his agenda, as expected from a devotee of (((Raghuram Rajan)))