WP: Why Were We in Vietnam?
By Harold Meyerson
Wednesday, July 9, 2008
....Confronted with such appalling squishiness (in China), what's a good, cost-cutting American business to do? Many are fleeing south of the border -- not our border (Mexico costs way too much) but China's. They're bound for Vietnam....
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According to a report by Keith Bradsher in the New York Times last month, such multinational companies as Canon (the printer and copier maker) and Hanesbrands (the North Carolina-based underwear empire) are expanding or building factories in Hanoi, where they churn out products for Wal-Mart and other American retailers. Foreign direct investment in Vietnam increased 136 percent between 2006 and 2007, while it increased just 14 percent in China.
The reason for the move south is straightforward: Vietnamese factory workers make about a quarter of what their Chinese counterparts earn. But why Vietnam and not, say, Thailand, where labor is similarly cheap?
Vietnam's edge, it seems, is political. "Communism means more stability," Laurence Shu, the chief financial officer of Shanghai-based Texhong, one of the world's leading manufacturers of cotton fabrics, told Bradsher. This view, Bradsher reports, is common among Asian executives and some American executives, too, though they have the presence of mind never to say so on the record. After all, Vietnam, like China, outlaws independent unions. Absent free speech and free elections, no radical shifts in the government's economic policies are likely to be sprung upon unsuspecting American businesses.
Now, far be it from me to begrudge the Vietnamese their moment in the sun before global capital finds them too costly and moves on to Bangladesh and Somalia. But didn't we fight a war to keep Vietnam from going communist? Something like 58,000 American deaths, right? And now American business actually prefers investing in communist Vietnam over, say, the more or less democratic Philippines? In all likelihood, it would prefer investing in communist Vietnam to investing in a more chaotic, less disciplined democratic Vietnam, if such existed....
...(W)e could argue that our onetime opposition to communism was noble and all that but that, unburdened by the illusions of the past, American business, backed by the American government, has realized that the problem with communism wasn't that it was undemocratic but that it was anti-capitalist. And that once communism was integrated into a world capitalist system, its antipathy toward democracy not only wouldn't be a bad thing but would actually be good. That is clearly the political logic that underpins our involvement with China. It's a little dicier to say this about our growing involvement with Vietnam, since all those Americans whose names are on that wall on the Mall probably didn't realize how compatible with global American enterprise Vietnamese communism would turn out to be or how the cause of democracy would turn out to have been of no real importance at all.
I guess a note from the American establishment to those men and women with their names on the Wall would be in order. Something like: Say, guys -- sorry 'bout that!
http://www.washingtonpost.com/wp-dyn/content/article/2008/07/08/AR2008070802462.html?hpid=opinionsbox1