Vietnam's factories are making more of their own parts, not just assembling imports

Vietnam's factories are now making more of the parts that go into their exports, reversing a long trend of relying on imported components. This means more of the money from exports stays inside Vietnam, instead of going to foreign suppliers.

For years, countries like Vietnam were seen as assembly hubs, putting together products from imported parts. This paper shows that when demand for their exports goes up, these factories start making more of their own components. It suggests that global supply chains are not as fixed as everyone thought, and local manufacturing can grow quickly if there's enough demand.