A U.S.-based consultant called me, asking about the validity of setting up manufacturing of simple plastic products in Asia -- such as China, Vietnam, Thailand, Malaysia, etc.

I've been promoting the idea of keeping plastic manufacturing, especially those that can be automated, where the market is. From a pure business viewpoint, it's quite simple: resin prices have been pretty much globalized with regional fluctuation; fuel and transport costs continue to rise; labor cost advantages and preferential policies are bound to change in emerging economies as they become richer. On top of these factors, of course, there are political and economic uncertainties of investing in a foreign country.

Take a look at Vietnam. The country's inflation tops 25 percent, with food costing more than 40 percent more than last year. It is also suffering a massive trade gap and a falling currency.

Vietnam's neighbor, important trading partner and investor -- China -- is seeing Chinese firms facing difficulties across the border.

According to Yang Zhen, chairman of the Business Association of China in Vietnam, who was quoted in a China Daily report, Chinese-invested companies in Vietnam have been suffering income losses as the dong depreciates, credit tightens, raw material and labor costs rise. The head of a plastic bag manufacturer from China was even attacked by local workers during a strike and had to hide in a government hotel, the paper reported.

If the Chinese economy is a large vessel, then the Vietnamese economy is a small boat. The latter's GDP is about one fiftieth of the former's. That's why China is more able to weather storms. However, when the big ship gets on the rocks, the damage and losses will also be much severe than with a small boat.