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Trade war

Vietnam's apparel sector fears cost surge as tech giants move in

Nike, H&M and Gap suppliers slow expansion in Southeast Asian nation

A shoe factory in Hanoi: Vietnam's apparel industry is fretting over rising costs.   © Reuters

TAIPEI -- Major apparel makers are halting or slowing their expansion in Vietnam amid worries that the trade war will indirectly push up labor costs as tech giants like Apple seek to shift production out of China.

For many of these companies -- who supply some of the biggest brands in the world, including Nike, Adidas, Uniqlo and H&M -- Vietnam is their biggest manufacturing base. But as Apple, Dell, Google and Amazon suppliers seek new production locations to avoid U.S. tariffs on China, competition for land and local talent is expected to heat up.

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