BanglaHunt Desk: About 1000 companies are trying to migrate from China to India due to Corona virus (COVID-19). Not only India, but also Southeast Asian countries are planning to go. In which a lot of companies are likely to go to Vietnam. After taking advantage of the trade war between the US and China, Vietnam is moving towards its goal in this time of crisis.
Vietnam's manufacturing sector has grown rapidly between 2016 and 2019. In this country, 25 percent development took place in early 2017. Which was around 15 percent in 2019. The main goal during this period was to rapidly improve their business, moving companies from China to Vietnam. Due to this, in the beginning of 2019, the success in exporting from Vietnam to America was about 40 percent more than last year. But only 12 percent more exports from India were seen in America.
Due to Uhan's corona virus, many companies are now moving their business from China to Vietnam rather than India. This is because the production structure in Vietnam is much better than in India and it also facilitates the export of goods from there. Although India's production structure has improved over the past few years, it lags far behind Southeast Asian countries.
Also because of the shortage of workers in Vietnam over the past few years, many companies find Vietnam more profitable than India. Even the demand for Vietnamese workers has increased. On the other hand, the Indian government has also taken various steps to bring different companies into the country. The government of India reduced the corporate tax. Reduced corporate tax to 18 percent. As a result, various companies from America, China and South Korea are planning to come to India.
India and Vietnam are currently in a tug-of-war over how many companies can come to the country. Experts believe that a clash between the two countries could take place in the future after the issue of China.