Archive · 23 Jul 2025
Manufacturing's Role in Global Economics: A Cambridge Professor's Take
Some people think making things in factories is becoming less important, but a Cambridge professor says it's still really big in countries like China and Vietnam, which are growing fast.
In Vietnam, lots of people work in factories, and the same is true for China.
An economist says the number of manufacturing workers in China might be lower than reported.
India is trying to boost manufacturing too, but an ex-official says they should also focus on creating jobs in other areas like services and skilled jobs.
The focus should be broader.
A Cambridge professor argues labor-intensive industrialization is still central to economic growth.
Vietnam's manufacturing sector employs 15 million people, representing 30% of its workforce.
China's manufacturing sector employs 215 million people, which is 28% of its workforce.
Economist Rafael Guthmann disputes the number of manufacturing workers in China.
Former Reserve Bank of India Governor Raghuram Rajan suggests India consider broader employment strategies beyond manufacturing.
- Who
- Cambridge professor Jostein Hauge, economist Rafael Guthmann, and former Reserve Bank of India Governor Raghuram Rajan.
- What
- Debate over the role of manufacturing in economic growth and job creation.
- When
- Ongoing
- Where
- China, Vietnam, and India
- Why
- To understand the importance of manufacturing in job creation and national output, particularly in developing countries.
Manufacturing as Primary Economic Driver
Diversified Employment Strategies
Employment Strategies
Manufacturing as Primary Economic Driver
Labor-intensive industrialization remains central to economic growth.
Diversified Employment Strategies
A broader approach to employment strategy should be considered, looking beyond export-led industrialisation.
- China Manufacturing Workforce
- 215 million (28% of workforce)
- Vietnam Manufacturing Workforce
- 15 million (30% of workforce)
- China's share of global manufacturing in 2000
- 6%
- China's projected share of global manufacturing in 2030
- 45%
- India's Manufacturing Focus
- Increase manufacturing's contribution to GDP and boost exports.