Mainland Shoe Companies Move To Vietnam Or Lose Profits.

Last weekend, about 1000 workers in a four Vietnamese factory in Panasonic Communications Vietnam Co. went on strike to raise wages to catch up with the price increase.

Over the past few months, Vietnam has seen a series of similar strikes against price rises.

This reflects the anger of tens of thousands of Vietnamese workers who have come from remote rural areas to new industrial areas such as Hanoi and Hu Zhiming, and find that the purchasing power of their incomes is declining under the erosion of soaring food and fuel prices.

This year's general strike took place in the Taiwan factory, which produced shoes for Nike Nike Inc..

In April, about 21000 workers in the factory went on strike for higher wages.

In recent years, a large number of foreign companies have poured into Vietnam, most of them are clothing and footwear manufacturers. The rise in the cost of labor and operation in mainland China has prompted them to go to Vietnam.

Last year, foreign-invested enterprises applied for $20 billion in Vietnam, which is 1/3 higher than that in neighboring Thailand.

According to the financial times, Vietnam's American Chamber of Commerce has called on the Vietnamese government to act quickly to restore macroeconomic stability at the annual meeting of the Vietnamese government and foreign business in June 2nd.

The choice of setting up factory production in a certain area depends on not only the low cost of the local land and labor, but also the stability of the local economy, and the high cost of other industries, including strike.