There is a wide range of emotions surrounding the current state of the globalization of our industry A and the effect it is having on individual woodworking companies here in the United States. While it is understandable why we focus on our problems, there are industry clusters around the world trying to figure out how to survive long-term. One such cluster is located near Ho Chi Minh City, Vietnam. Last month I wrote about the current state of the Vietnamese woodworking industry, specifically the furniture industry. I pointed out why Vietnam has the ingredients to become a powerful wood products exporter including: 1. Market demand for low-cost furniture; 2. Abundant and inexpensive labor at US $35 per month; 3. An economy growing at 6-7 percent; 4. An infrastructure able to support industry; 5. Structural reform and trade agreements; 6. Ports on the Gulf of Tonkin and the South China Sea; 7. Technical expertise and capital; and 8. The will to compete with China. This month I will provide a closer look into some of the issues that challenge the long-term viability of the sector in Vietnam.
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