Question

Statement/Question:

Major drivers of the success of Vietnam’s footwear manufacturing sector are purported to be its weakly enforced labor and environmental standards and its generous subsidies to state-owned enterprises. Does this give Vietnamese firms an unfair competitive advantage over U.S. firms?
I’m looking to briefly analysis this from a few relate areas:

- Comparative Advantage theory
    - Economists generally state that the gains from international trade are, at least in principle, advantageous to all parties involved in the long run
- Strategies to manage globalization
    - In terms of State capitalism
    - In general terms, the objective is to control the wealth that markets generate by allowing the governments to play a dominate role
    - This leads to outside firms competing with businesses that have the finance   and political support of their home governments
- Using location choice (offshoring to a specific country) to create and capture value.
    - Deployment, Developing, deepening strategies (not sure how relevant these are to the question )

Answer 1

yes Vietnam has become one of leading player in shoes taking positions of china.Due to all above factor mentioned Vietnam has become one of leading player all leading player Nike and Adidas has shifting base to Vietnam.

Due to enforced weakly labour and subsidy by government and not much environment restrictions even though Vietnam small economy is now challenging china not in this but many other sectors. Due to policies of Us government US manufacturing is becoming non competitive in every manufacturing sector not just shoes only.

Small country like Vietnam is taking COMPETITIVE advantage over US AND CHINA and is becoming major destination for manufacturing industries.