Challenges Vietnam: Vietnam and Manufacturing Industry

challenges vietnam: According to a Business Insider report citing London-based consultancy Capital Economics on Tuesday, Vietnam could be sowing the seeds of the next crisis with its loose monetary policy, according to Global Times China. Further worrying are the challenges Vietnam faces integrating itself into the global manufacturing chains. The country's economic slowdown can be largely attributed to a severe drought and it remains uncertain whether growth will resume its momentum in 2017. Vietnam's manufacturing industry has been rapidly expanding, which has allowed the Southeast Asian country to prosper in the past few years. However, as the US serves as Vietnam's largest market for exports and is a major source of foreign direct investment, it is possible that the Vietnamese economy could suffer seeing as US President-elect Donald Trump has encouraged the US to pursue trade protectionism policies. Labor-intensive processing bases have been built in the country because of the labor cost advantages and now the country plays an increasingly important role in global production chains. (news.financializer.com). As reported in the news.