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hi this is Anita from the Global Trade
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Gal As there's been a lot of talk
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recently especially in the United States
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about tariffs a lot of people have asked
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well why can't you just produce
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something anywhere in the world And
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there's a lot of reasons why It's not as
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simple as everyone seems to or may think
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it is It really is actually quite
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complex And today I want to talk about
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one of the reasons why Vietnam has
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become one of the top destinations for
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home decor and furniture manufacturing
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over the years There is no doubt at all
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that Vietnam has become one of the top
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destinations because of the fact that
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China has had a lot of tariffs and
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anti-dumping and other things placed
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upon it So Vietnam has been one of the
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countries that has really benefited from
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all of that When we quote prices in
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China or quote in Vietnam a lot of times
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our China prices is cheaper And this
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might surprise a lot of people and
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there's many reasons for that One is
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just simply the supply that in China you
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can find everything you need to produce
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things right within China itself China
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has a huge amount of factories that can
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basically supply everything that you
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need For example if we're producing a
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piece of furniture we can find the wood
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suppliers in China We can find the
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hardware suppliers in China We can find
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all the parts all the pieces everything
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we need within China itself Vietnam you
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can usually find it but you might find
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yourself having to import a few things
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Like for example you know the wood they
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will usually import Some of the hardware
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they'll import hardware they will import
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some they will not It depends upon the
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product But because factories have been
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moving here and they've been producing
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things like the hardware wood suppliers
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have been coming in you can readily find
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these things in Vietnam than maybe you
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can in other parts of Asia So here are
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some of the reasons why Vietnam
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continues to be a a place to produce
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many different types of home decor
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products One of them is that there's a
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deep culture of craftsmanship The other
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advantage you find here in Vietnam is
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you find that there's a lot of these
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handiccraft villages I always say one of
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the big difference between China and
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Vietnam or Mao and Ho Chi Min if you
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want to look at the leaders during that
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time period was when Mao came into China
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he decided he was going to make China
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become this great powerhouse of
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manufacturing So he had all these
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policies put in place where he basically
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killed a lot of the smaller villages and
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you know people at the time there were
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you know all these different types of um
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things that he had going on One of them
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is like the great leap forward where he
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told everybody bring your metals We're
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going to you know melt down all your
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metals So people were melting down all
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these metals in these backyard places
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and it was really inferior metal that
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was going on So a lot of these
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industries that uh you had the cultural
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revolution too which you know didn't
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believe in anything old and and um you
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know for everything that was new So
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China had a lot of these policies that
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got put in place where a lot of these
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handiccraft villages that they once had
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maybe you know ended up being a bit more
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destroyed or the people left the areas
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and they went somewhere else to work
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normally in southern China Whereas Ho
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Chi Min from what what I see you know Ho
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Chi Min did not destroy the villages In
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fact he kept the villages intact So when
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you come to a place specifically like
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Hanoi you will find outside Hanoi
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there's a ceramic village that has 800
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years or you know whatever of or
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producing ceramics So this is you know
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passed down from father to son or from
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family to family and they've been
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producing the family has been
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continuously producing ceramics for 800
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years You go out to lacquer villages
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find something similar bamboo villages
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weaving villages brass villages So you
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have all these villages and these small
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little tiny what you call like workshops
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that have been producing the same thing
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for hundreds and hundreds of years So
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you know this is in Vietnam there's a
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lot of skill that has been passed down
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from generation to generation So there's
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some skilled labor here that may not be
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in other places You know you also have a
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very young skilled workforce Vietnam is
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a relatively a young country There's a
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lot of the over half the population is
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you know is young and so you have a very
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young population here but you have a
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population of about I think it's like 96
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97 million people now and you know half
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of those are young so you've got this
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workforce that's coming in whereas in
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other parts of Asia you have you know an
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older workforce where in Vietnam you
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have a younger one so you have a young
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energetic and highly capable workforce
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where a lot of them are actually
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educated The literacy rate in Vietnam is
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actually quite high It is in fact you
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know higher than many western countries
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here where it's over 95% of the people
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you know can read and write You have
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competitive reduction costs which of
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course helps to make drive the price
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down When the terrorists came in I
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recently quoted some furniture in
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Malaysia and quoted some furniture in
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the Philippines Both of them were higher
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than Vietnam And you know there again it
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it could be lots of different factors
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but but I found that the prices were um
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some of them were significantly higher
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So you have competitive production costs
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here Vietnam has had usually had some
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strong trade agreements The uh we're
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going to see what's going to happen now
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with the tariffs coming up but of course
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you know that's an unknown for everybody
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But Vietnam has has had very good strong
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trade agreements The Vietnamese had to
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be very pract surprisingly the
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infrastructure here is relatively good
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Yes You go down to places like Ho Chi
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Min and I have to tell you the roads are
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terrible down there but you don't have
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to travel very far to get to the port
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but you know Vietnam is building new
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highways new port systems Electricity is
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relatively stable there have industrial
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parks they have you know logistics hubs
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So you know Vietnam has really been
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investing in the infrastructure There's
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a lot of ethical manufacturing and
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social responsibility here where they
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are you know committed to a lot of the
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ethical practices and social
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responsibility practices which makes it
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an ideal place for many people to look
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to manufacture here People have often
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asked me do you see children in the
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factories and you know in Vietnam here I
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don't see children in the factories and
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I don't tend to worry you know about
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slave labor and those type of things
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Most of the children are are in school
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because education here is very important
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especially in the major cities as Hanoi
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and Ho Chi Min They have a lot of
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different types of products and product
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ranges You know everything from metal to
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natural materials to wood uh ceramics
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There's lots of different types of
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finishes here which also makes an ideal
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location A lot of the Vietnamese
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factories because they're not as big as
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the Chinese factories they are very
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flexible minimum order quantities which
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for my industry can be great because
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we're in the medium to higher end And so
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you know because of that they can be
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pretty flexible on a lot of their they
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have lower minimum order quantities They
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are able to make a lot of custom items
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and they can work in smaller production
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runs So it could be more niche which can
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be great for you know places like Europe
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who's looking to produce or like I said
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for my industry which is medium to
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higher end where you know we are not
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buying like you know 10 containers of
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one item So you know at Muro we really
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try to work to take advantage of uh
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Vietnam and the Vietnam's ability here
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and we have worked here for many many
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years In fact we've been here we were
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here early since the 2000s So we
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understand have seen this development
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and this change going on within Vietnam
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itself So we really feel like Vietnam is
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a place that's going to continue to grow
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like all countries in the world It will
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change you know there will be changes
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that certainly will take place but it is
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a manufacturing sector and it does have
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a lot of things that you know other like
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I mentioned other countries didn't have
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where they have a young workforce that's
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willing to work and wants to work and
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you know because of that I believe that
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Vietnam will be able to manufacture for
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many years to come of course the
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government would like to see you know
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manufacturing of high-tech automobiles
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other things like that is still going on
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here too but they still do have a really
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large handicraft type of industry and
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furniture industry that I believe will
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continue to grow for some time
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especially if the tariffs which have
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been put on the United States will
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become to a more reasonable rate This is
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Anita from the Global Trade Gal Thank
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you so much for listening If you'd like
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to be able to read my blog on this you
8:51
can read my blog post on why Vietnam is
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a top destination for home decor and
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furniture manufacturing We'll put a
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description the link below that you will
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be able to understand a little bit more
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about this and why we we feel the way we
9:05
do about why Vietnam is a top
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destination for home decor and furniture
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Thank you so much for listening We do
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appreciate you our listeners And press
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