Kampuchea'S Bangladesh Is Also Trying To Attract Investment From Chinese Textile Companies.

Vietnam, the South China Peninsula, is now a burning paradise.

Due to the impact of the local financial crisis, most of the Chinese textile companies that are going to invest in Vietnam have already stopped in friendship.

Compared with the wandering of peers, Jiangsu red bean group has made strategic adjustment rapidly, turning its attention to Kampuchea next to Vietnam. Its investment factories have been built.

Is Kampuchea a new investment paradise?

"I think Kampuchea's investment environment is better than Vietnam."

In June 16th, Qin Yu, director of the red bean business group, told the Securities Daily reporters that he was responsible for contacting bilateral import and export business between China and Kampuchea.

"Now the investment environment in Kampuchea is very good. Many enterprises choose to build factories in Kampuchea.

Moreover, there are many enterprises that first visited Vietnam, and later chose to build factories in Kampuchea.

It is understood that the economic development of Kampuchea started in 98 years, but because of the influence of immature policies and investment environment, it has been in a low ebb.

But in the 05 or 06 years, large enterprises in Korea, Japan and Singapore poured into Kampuchea to build factories, so that Kampuchea's economy entered a period of great development.

And the red bean group was selected last year from many neighboring countries to build Kampuchea as a base.

Vietnam has always been the first choice for Chinese textile enterprises to go out. So why did the red bean group abandon Vietnam and choose Kampuchea?

Qin Yu said: "Vietnam's economic system has been largely shaped through ten years of economic development. On the other hand, Vietnam's development space is limited. Two, our relationship with Vietnam is not very close due to border issues. Three, Vietnam is not the most backward country. Therefore, exporting to Europe and the United States will not be completely exempt from taxation, and there will be quota restrictions on exports."

"Comparatively speaking, red bean has many advantages in setting up factories in Kampuchea.

First, the relationship between the two countries is good, and Kampuchea gives preferential policies to enterprises. Two, Kampuchea is a backward country. The world has given Kampuchea a lot of preferential treatment. Three, Kampuchea's economic development has a low starting point and many opportunities for further development.

Because Kampuchea is a backward country, 28 countries such as the United States, Europe, Japan and other countries give preferential treatment to Kampuchea (GSP). For the import of textile and apparel products from Cambodia, the United States has given more preferential quotas and tariff reductions and exemptions, no restrictions imposed by the European Union, and Canada has been granted exemption from import duties. It has attracted investment from Kampuchea, which is the leading textile and garment export country and region headed by China (including Hong Kong, Macao and Taiwan).

Coupled with the preferential policies of Kampuchea for foreign enterprises, the red bean group will pay 9 years' full tax revenue and no European and American export tax. In addition, the import of raw materials from China and so on will not have to pay import taxes.

It is calculated that if these factors are added together, the red bean group will save 40% of the cost.

Moreover, in Vietnam, we should consider the issue of quotas. In Kampuchea, there is no limit.

According to Qin Yu, the establishment of the red bean group in Kampuchea may last for 3 to 5 years, and products are not limited to clothing, but products produced by export processing types will be produced.

The red bean group has regarded Kampuchea as a "industrial processing" base.

Kampuchea, which is free from export duties, quota free restrictions, no anti-dumping concerns, no trade barriers and trade frictions, is undoubtedly regarded as a paradise for export by the red bean group.

Bangladesh is also trying to attract investment from China.

Insiders say that this year, due to the restrictions imposed by the US and Europe on China's textiles and the appreciation of the renminbi, Chinese textile enterprises have been investing in factories in neighboring countries, hoping to avoid trade barriers and reduce production costs.

With the encouragement of the state, powerful enterprises are ready to "go out".

It is against this background that in early April of this year, the China Textile Import and Export Chamber of Commerce had led textile enterprises to Kampuchea and Bangladesh for two weeks.

Unlike Vietnam, the investment backgrounds of Bangladesh and Kampuchea are very similar, and the preferential policies given to enterprises are almost the same.

But even so, the factories that choose to set up factories in Kampuchea are still far higher than Bangladesh, making Bangladesh gloomy.

Cao Xinyu, vice president of the China Textiles Import and Export Chamber of Commerce, has said that the development of textile industry in Kampuchea and Bangladesh has a preliminary foundation. The conditions for attracting investment are mainly that the export quota of Europe and the United States is not restricted by quotas and that the European Union enjoys a generalized preferential tariff system.

In addition, the neighboring countries have frequent investment in China and offer tax concessions, such as Bangladesh's 10 year income tax exemption for foreign textile manufacturers.

Not only that, it is understood that the average monthly wage of textile workers in Bangladesh is about more than 40 yuan (RMB 300 yuan), while the average textile workers in the Pearl River Delta in China earn an average monthly salary of more than 1000 yuan.

Compared with Bangladesh's "super preferential policy", Kampuchea also delivered an attractive "red envelope".

When it comes to the red bean group's investment in Kampuchea, Qin Yu excitedly told reporters: "the red bean group has invested a lot of money in Kampuchea for tax purposes. It is not only 9 years full tax exemption, but also the raw materials imported from China are not taxed. Like Bangladesh, the labor in Kampuchea is much cheaper than that in China. The average monthly wage of the average textile worker is 50 dollars (overtime is 70-80 dollars)."

If careful analysis is made, the preferential conditions given by Kampuchea and Bangladesh are different.

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