The Peter Zeihan Podcast Series "Made in China" Becomes "Made in Vietnam" || Peter Zeihan
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Jul 11, 2025 Vietnam is rising in the ranks of American imports, emerging as a key player in global trade. The shift from China to Vietnam showcases the country's advantages in manufacturing and supply chains. Unlike direct competition, Vietnam and Mexico both enhance their economic positions. As China's influence wanes, the podcast explores the complexities of navigating these new trade dynamics and the challenges in enforcing tariffs. It's an insightful look at how Vietnam is poised to reshape the landscape of global manufacturing.
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Why Vietnam Is the New Manufacturing Powerhouse Overtaking China
Vietnam has surged as a top alternative to China in global manufacturing, especially for the U.S., due to its proximity, large skilled workforce, and technical education focus.
Key reasons why Vietnam stands out:
- Close geographic proximity to China allows easy relocation or outsourcing from Chinese production.
- About 40% of Vietnamese college graduates specialize in STEM, supporting high-value manufacturing.
- Vietnam invests heavily in education, aiming to leapfrog China technologically rather than imitate its earlier white-collar focus.
Vietnam's manufacturing clusters resemble China's multi-city systems, unlike Mexico's isolated production centers. This supports complex supply chains similar to those in China. However, concerns remain about Vietnam acting as a transit point for Chinese goods labeled "Made in Vietnam" to bypass tariffs, prompting nuanced tariff strategies.
With China's challenges and shifting trade relations, Vietnam is poised to become a critical hub in global supply chains while complementing Mexico's manufacturing approach.
Vietnam's Strategic Manufacturing Appeal
- Vietnam's proximity to China makes it a prime location for relocating manufacturing or serving as a backup supply chain hub.
- Its large STEM-educated workforce and size comparable to Mexico's workforce enhance its attractiveness to investors.
Vietnam vs Mexico Manufacturing Styles
- Vietnam and Mexico employ fundamentally different manufacturing approaches shaped by their geography.
- Vietnam supports clustered, specialized supply chains while Mexico typically manufactures complete products in isolated desert cities.