So Much For The Domino Theory

Nike Inc. is planting its feet in the Socialist Republic of Vietnam with plans to begin producing shoes at several plants south of Ho Chi Minh City later this summer.

Between two and five plants are expected to begin making Nike athletic shoes before Labor Day, Nike executive George Southrey Jr. told The Business Journal of Portland.

“Everyone knew we’d be looking at Vietnam,” Southrey said. “There was a sense that this was a place with a lot of opportunity.”

Nike currently produces footwear in Asian factories owned by subcontractors in Thailand, Taiwan, South Korea, China and Indonesia.

“We have experienced a tremendous amount of growth in the last few years and continue to need to expand our production sources,” Nike spokesman Keith Peters said.

Peters said low wages in Vietnam are not the reason Nike, which was criticized in 1992 over its low wages for workers in Indonesia, is moving into the country.