A nation of 90m people, Vietnam has emerged from a drawn-out banking crisis to become Southeast Asia’s fastest-growing major economy by attracting a range of global manufacturers, from technology group Samsung to suppliers for fashion brands Nike and Uniqlo. Facing rapid wage rises in China, the world’s main manufacturing hub, factories have been enticed by Vietnam’s lower competitive labor costs with the same quality — and its location in the heart of Asia. Industrial expansion helped Vietnam’s economy grow by an annualised 6.5 % in the first nine months of the year, the quickest pace since 2010, while disbursement of foreign direct investment increased by 8% in same period to $9.7 billion.
Pou Yuen Co. Vietnam, PungKook Saigon III Co, Ltd. and Dong Hung Group manufactures original design manufacturer (ODM) for major international brand name companies including Nike, Adidas, Puma, Reebok, … According to Business Journal, in 2013 42% sports shoes in global market were made in Vietnam.
There are always issues and challenges in labor code and human rights, but Nike proactively enforced certain actions and initiatives:
- Nike has collaborate with NGOs and activist by using the potential of local-global linkages to raise voices against firms which violated code of conduct.
- The global coalition of agencies and activists can help governments regulate the big corporations, thereby ensuring the protection of workers.
- It is possible to attract foreign investment while regulating factories through proactive policies.
- Global information disclosure by international firms can help establish a highly effective accountability mechanism ensuring improvement in their standards and practices.