Let’s take the example of a small clothing factory in Europe. A salary in usual countries for an hourly rate of 12€ per hour is about 1,200€ per month, which is twice as much including social security taxes paid on the employees’ behalf by the company. In Vietnam, since the cost of living is much lower and the factories are located in free zones with tax exemptions, you can expect to pay less than 200€ per month for the same experienced employee. That’s more than 10 times less than in Europe. Even if you include shipping, storage and customs tariff, you will still achieve a much more competitive manufacture-chain than a production in Europe.