Logistics as a competitive advantage for an industry

The Japanese market imports a high percentage of textiles. Consider the competition between competition for Japanese markets of the textile industries of Malaysia and Vietnam. Vietnam had a distinct cost advantage over Malaysia at the production stage but this was lost when logistics is considered. Vietnam lacked a deep water port – a fact that had a significant role to play in US military operations during the ill fated Vietnam War – and this inflated their costs to reach the Japanese market. Malaysia had sophisticated port facilities in place in Singapore even before they developed their own.

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