Vietnam is not the next China

The politics may be similar, but let's face it, Vietnam is a much smaller economy than China.
Vietnam is often compared to China. Consider the obvious they are both communist countries VietnamÆs laws are often mirror images of Chinese rules, just translated into Vietnamese and Vietnam is a rising manufacturing hub that boasted a booming GDP growth of 8.5% in 2007.

But on Friday, the Royal Bank of Scotland issued a research report titled, Vietnam Not Another China, that puts right that myth by stating another obvious Vietnam ôlacks the same scale advantages. Its impact on global trade and inflation will also be marginalö.

The report concedes that comparisons to China in the 1990s, particularly southern China, make sense. Hourly manufacturing wages are around $0.50, which puts it among the lowest...
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