Manufacturers want to quit China, but neither Vietnam nor India match up

India has the manpower, but skill levels fall short and government rules are relatively restrictive

Companies News: With the US and China tangled in a nasty trade fight, this should be Vietnam’s time to shine. Instead, it is becoming increasingly clear that it will be years, if ever, before this Southeast Asian nation and other aspiring manufacturing destinations are ready to replace China as the world’s factory floor.

The specialised supply chains that made China a production powerhouse for smartphones and aluminum ladders and vacuum cleaners and dining tables are nowhere near as developed in Vietnam. Factories with US-focused safety certifications and capital-intensive machinery aren’t as easy to find. And Vietnam, with less than one-tenth China’s population, is already running into labor shortages as global manufacturers rush to set up shop here to avoid US tariffs.

“China has a 15-year head start—whatever you want, someone’s doing it,” said Wing Xu, the operations director for Omnidex Group, which helps make large pumps for Pennsylvania-based industrial equipment manufacturer McLanahan Corp.

Business leaders say they are preparing for a protracted fight between the world’s two largest economies. Few companies are planning to leave China altogether, but those that heavily clustered production in the country are urgently looking to diversify…

Raed More: US China trade war