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KIEP Opinions

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Title Is Vietnam the Next China? Preparing for the Post-Pandemic Decoupling
Author Sunhyung Lee
Date 2020-09-15
File KIEP opinions_no195.pdf 

With the ongoing global health crisis and the great decoupling process, the prospects of GVCs are perplexing. While many companies are shifting production out of China and relocating to Vietnam, it may take a while until “Made in Vietnam” replaces “Made in China”, considering the smaller production capacity in Vietnam. Instead, “Made in the World” may be a more apt term for describing the current outlook in GVCs. In the new era, maintaining a “China plus one” strategy and cooperating with Vietnam’s increasing global linkages are workable policy choices for South Korea. In the long-run, investing in digital platforms, automation, and 3D printing that will transform GVC participation is paramount when engineering a more resilient production network.