Many businesses have had to downsize and many others have been forced to shut down altogether, partly due to high production costs, according to Vietnamnet. In particular the publication notes that:
- Capital costs are higher in Vietnam on the back of bigger risks;
- Transport infrastructure is haphazard and missing crucial connections;
- There are additional fees for local firms, specifically ‘under-the-table fees’ and union fees; and
- Employee social insurance payments are higher in Vietnam than among its neighbours.