The relationship between Donald Trump and Kim Jong-un has been dominating the news cycles for months. But while the media focuses on these two leaders, manufacturers in Asia have been quietly eyeing up North Korea as the region’s next low-cost sourcing destination.
“Critical conditions for low cost sourcing hubs are low wages and a quick-learning workforce, and North Korea has both. Considering key factors for competitiveness, North Korea has the potential to become a hub [similar] to Vietnam,” predicts Taeho Sim, a partner at A.T. Kearney based in Seoul, South Korea.
Most observers see the June 12th Singapore summit between Trump and Kim as an overture that could lead to further talks. While it is too premature for trade to be high on the official agenda, the lifting or easing of sanctions against North Korea is undoubtedly one of Kim’s objectives.
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