Third Party Logistics News recently posted on how those considering Vietnamese manufacturing should look long and hard at Vietnam’s logistics problems. The post is entitled, “Vietnam : Lack of logistics infrastructure = higher logistics costs,” and it contains good advice for those considering Vietnam.
It concludes what I always conclude. Vietnam is great for some things and not so great for other things and nobody should just be rushing in:

Anybody who has been reading our blog since its inception knows that we’ve always cautioned against “rushing” into China and evaluating the pros and cons for going in carefully before making that decision. We’ve never advocated avoiding China, simply that people should think twice and consider carefully before making that jump – for some companies, it just might not make sense.
As China moves to higher-end manufacturing and costs in general have continued to rise, some companies have been tripping over themselves in their rush to move production to even-lower-cost Vietnam. I wish I could say I was puzzled at the frenzy of activity in Vietnam or that I was surprised by the subsequent port congestion issues that slammed Ho Chi Minh City earlier this year, but I can’t. It’s interesting to note that the same advice we have advocated in the past in regards to China – and still do – are similarly being ignored by countless firms now rushing headlong into the next “hot sourcing country”, Vietnam.
It’s been pointed out before, but I’ll point it out again: Vietnam is not China. And one of the largest differences between the two countries is the level of port and logistics infrastructure. Vietnam simply can’t compare to China’s port infrastructure:

Put simply, Vietnam’s logistics, especially its ports, are not on China’s level and that oftentimes directly translates into increased costs.

Print:
EmailTweetLikeLinkedIn
Dan Harris

I am a founder of Harris Bricken, an international law firm with lawyers in Los Angeles, Portland, San Francisco, Seattle, China and Spain.

I mostly represent companies doing business in emerging market countries. It has taken me many years to build my network and it takes constant communication and travel to maintain it. My work has been as varied as securing the release of two improperly held helicopters in Papua New Guinea, setting up a legal framework to move slag from Canada to Poland’s interior, overseeing hundreds of litigation and arbitration matters in Korea, helping someone avoid terrorism charges in Japan, and seizing fish product in China to collect on a debt.

I was named as one of only three Washington State Amazing Lawyers in International Law, I am AV rated by Martindale-Hubbell Law Directory (its highest rating), I am rated 10.0 by AVVO.com (its highest rating), and I am a SuperLawyer.

I am a frequent writer and public speaker on doing business in Asia and I constantly travel between the United States and Asia. I most commonly speak on China law issues and I am the lead writer of the award winning China Law Blog (www.chinalawblog.com). Forbes Magazine, Fortune Magazine, the Wall Street Journal, Investors Business Daily, Business Week, The National Law Journal, The Washington Post, The ABA Journal, The Economist, Newsweek, NPR, The New York Times and Inside Counsel have all interviewed me regarding various aspects of my international law practice.

I am licensed in Washington, Illinois, and Alaska.

In tandem with the international law team at my firm, I focus on setting up/registering companies overseas (via WFOEs, Rep Offices or Joint Ventures), drafting international contracts (NDAs, OEM Agreements, licensing, distribution, etc.), protecting IP (trademarks, trade secrets, copyrights and patents), and overseeing M&A transactions.