ELECTRONIC JOURNAL OF SOCIAL AND STRATEGIC STUDIES - Volume 2, Issue 1, April-May 2021
Pages: 23-60
Supply Chain Shift from China: Is it Vietnam’s Gain and India’s Loss?
Cmde SL Deshmukh, NM (Retd)
Category: International Relations
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Abstract:
Supply chains are a life line for businesses. Without efficient, reliable and cost effective supply chains businesses cannot survive. China has been able to develop its industrial prowess well to become a ‘manufacturing hub’ for the world and a major global supply chain partner. However, over the years problems started brewing for China for various reasons like rising wages, trade disputes etc. Many such factors probably came together which affected the supply chains in China. Currently, Trade war and shift of supply chains out of China, mismanagement of Covid-19 Pandemic, South China Sea imbroglio seems to have hit China where it hurts. The ‘Supply Chain Shift’, apparently triggered by the ‘USA-China Trade War’ was expected to benefit many ASEAN countries particularly India and Vietnam. However, Vietnam has comparatively done better and has stolen the march over many countries and especially India-its nearest competitor. Keeping in mind fairly serious impact on India’s pandemic affected economy on account of Vietnam’s gains, this article attempts to analyse concepts of supply chains, reasons for triggering shift of Supply Chains from China, prospects for countries in the region, Vietnam’s edge over India in garnering benefits from that shift and India’s strengths, weaknesses as well as impediments. The article suggests probable way forward to mitigate the same.
Keywords: Trade war, China, India, Vietnam, ASEAN, Supply Chain shift, USA, Manufacturing
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DOI: 10.47362/EJSSS.2021.2110
DOI URL: https://doi.org/10.47362/EJSSS.2021.2110
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