After the great industrial shift of manufacturing goods to Asia, many smaller bordering countries, like Vietnam, are increasing their supply chain management and production to facilitate trade paths across the Pacific Sea. Currently, the Trans-Pacific Partnership (TPP), involving nine countries, is debated and would reduce trade tariffs, when moving goods from one country to another. This would help many small or medium-sized businesses to trade on an global level and would increase the involvement of international logistics companies in relation to shipping. Importantly, manufacturing is moving from China to Vietnam, mainly because of higher trade predictions with the U.S., Japan, and other TPP collaborators. This article demonstrates that logistics is a current issue and still requires further integration into each part of the world, however, the TPP would reduce costs in logistics that could translate into lower consumer prices. Lastly, establishing logistic channels in Vietnam is a question of time and could deviate trade passages to different continents.
The Blog Coordination Team
Reference article: Erica E. Phillips, 5th October 2015, The Wall Street Journal