Vietnam is getting more attention these days from manufacturers of shoes, garments, and computer chips—just a few of the items that helped China emerge in recent years as the world’s ‘factory floor.’

In fact, Vietnam has become so attractive to manufacturers that even Chinese firms are setting up shop there to take advantage of cheap labor, tax breaks, and inexpensive real estate.

Factory wages in average $50 to $60 a month, which is about half that of Chinese workers in manufacturing centers along China’s coast.

Although it may be hard for some American firms to imagine that Vietnam could compete with China, the decision by Intel to build a microchip facility near Ho Chi Minh City instead of China or Thailand demonstrates that Vietnam is quickly becoming a viable option to China.

The government has been busy building roads, airports, and seaports in anticipation of growing foreign direct investment, which more than doubled to $5.8 billion last year from $2 billion in 2004.

In the meantime, Vietnam is on track to join the WTO soon—making it even easier for foreign companies to do business in the country’s market of 84 million.