Best Places to Build a Factory

There are many choices in where to place a factory. The main candidates are China, Sierra Leone, and Vietnam.  The best choice by far is Vietnam. I propose to anyone looking to build a factory in Vietnam. The main reasons for this is because it has cheaper labor then our other candidates, it has a stable government, and it has access to cheaper shipping. Read on to understand in more detail.

Cheaper Labor

To begin with, the labor in Vietnam is cheap compared to China which was a close choice with Vietnam. But Vietnam’s per capita is 2,800 dollars. China’s per capita is 6,000 dollars which is a big difference. You might be thinking if you want cheaper labor you might have to expect less competent workers. But the literacy rate is 90.3% and in China is 90.9%.

Stable Government

Secondly, Vietnam has a much more stable government then our other prospect Sierra Leone, which is infested with criminals and rebels fighting for the diamond fields. We wouldn’t want opening a factory there and then getting it blown up by the rebels for “the cause”. China also has a similarly stable government but it loses in the other categories.  

Cheaper Shipping

Lastly, Vietnam has access to cheaper shipping resources then both Sierra Leone and China. In Sierra Leone it is risky sending and receiving cargo because there are loads of pirates in the sea around the country. China on the other is a hundred percent less risky. But it is farther away from the United States then Vietnam.

Conclusion

As you can see the main reasons for building a factory in Vietnam instead of China or Sierra Leone is that it has cheaper labor then our other candidates, it has a stable government, and it has access to cheaper shipping.