Vietnam'S "Cold Spring" Shoe Companies Need To Be Cautious About Nuggets.

Under the plight of frequent strikes and low productivity, economic difficulties such as soaring prices and continued devaluation of the Vietnamese shield have made the manufacturing industry worse.

Vietnam rising tide

Compared with the beginning of the year, the price of rice rose from 9000 shield / kg to the current 13000 shield / kg, and the pork increased from 60 thousand shield / kg to 77 thousand shield / kg.

Since 2002, the wages of Vietnamese workers have increased by about 15% per year, while 2006 has risen by 40%. over 2005.

The monsoon does not come in season, which makes the monsoon country Vietnam very uncomfortable.

The strike, which erupted at the end of the year, was brought to the front by now, all because of the economic recession caused by inflation and stock market crash.

"By the end of 2007, we had already raised wages before the new wage standard came out, but we have to increase 10% to 20%. in the near future." in June 8th, Jiang Yaoting, general manager of Vietnam Jingyang Co., said, "moreover, not only are foreign workers going on strike, but domestic workers are also on strike.

In recent years, Vietnam has become a darling of international capital, and the Vietnamese government has also implemented the ultra conventional development route. It looks forward to integrating into the global community as soon as possible: formulating many preferential policies to attract foreign investment, further opening up the financial market and accelerating capital liberalization.

From 2000 to 2007, the average annual growth rate of Vietnam's economy reached 7.5%, second only to China, ranking second in the world.

Foreign investment companies have complained about Vietnam's investment environment, and now they are adding more economic pressure.

Jiang Yaoting said with great reluctantly, "do less and lose less.

Soaring prices and rising wages

The price of spare parts increased by 40% compared with March, and some small suppliers began to fail. Since 2002, the wages of Vietnamese workers have increased by about 15% per year, while 2006 has increased by 40% over 2005.

Foreign enterprises have changed the fate of HUYNHMINHLUC, otherwise, he may help people to fish in the sea.

He came to the economically developed Hu Zhiming city from Qinghua Province, central Vietnam. Although the distance between them is only 500 kilometers, it is only two days before they arrive.

In the streets of Hu Zhiming, such banners are written in Vietnamese characters: "please obey traffic rules and promote economic development".

In March 12th, Hu Zhiming announced the pportation development plan to 2020. By 2020, Hu Zhiming will invest 410 trillion shield (about 25 billion 900 million US dollars, according to March March exchange rate, the same below), and build 6 high flow expressways, 4 elevated roads, 22 bridges and other infrastructure.

HUYNHMINHLUC's sister-in-law is the manager of Huafeng Shoes Co., Ltd. (hereinafter referred to as "Huafeng"), so he came here to work after he retired from the army.

Now, he gets 1 million 200 thousand yuan a month (about 85 dollars).

But from the afternoon of March 12th, HUYNHMINHLUC responded to the call of the workers, and the four thousand or five thousand men went on strike, demanding that the company raise wages.

Their reason is that prices are rising faster than wage increases.

Like other countries, Vietnam's prices are soaring as crude oil prices rise.

In June 8th, Jiang revealed that some smaller suppliers began to fail, because the price of spare parts continued to rise, rising by 40% compared with March, and other prices were also the same, for example, the price of rice increased by 1 times.

"If the supplier is supplied by ordinary people and retailers, there is no problem; but if it is supplied to the factory, it will be very troublesome, because the supply to the factory will adopt the way of" monthly knot ", but the supplier's purchase price is high, plus credit, his money will be difficult.

The closed northern provinces are relatively calm, but the production and sales of motorcycles, automobiles and other bulk commodities have been significantly affected.

"Many people in the stock market have been locked up, some of them are selling houses or lending stocks, and now the Vietnamese economy is very depressed."

This has also forced the Vietnamese government to adjust the minimum monthly wage standards for Vietnamese workers almost every year.

The new standard implemented in January 1, 2008 is Hanoi and Hu Zhiming. The minimum monthly salary for Vietnamese workers in foreign enterprises is 1 million shield (about 62 US dollars), and the rest area is 50 dollars or 60 dollars.

Li Tianqi, President of the Federation of Taiwan chamber of Commerce in Vietnam, admitted that the wages of Vietnamese workers were very low and should be increased, but the rate of increase was too fast. Since 2002, it has increased by about 15% per year, while in 2006 it has risen by 40%. over 2005. This also makes strikes as popular as plagues, because resistance is effective.

A pestilence strike

Frequent strikes and low productivity problems are plaguing foreign-funded enterprises. They believe that these are enough to offset Vietnam's low land price and low labor cost.

As early as January 1st, according to the new standard set by the government, "Huafeng" raised the basic wage of workers to 850 thousand "shield" (about 425 yuan), which used to be 560 thousand shield.

However, the workers reflected that 1.5 hours of overtime worked 1 times before, and now that the basic wage rises, overtime pay is the same as usual.

HUYNHMINHLUC lives in a rented house near the factory. A wooden loft is about ten square meters, and not a piece of furniture. He sleeps on the floor.

In fact, although Huafeng did not provide dormitories for male workers, it provided free dormitories for all female workers, paying only 20 thousand yuan per month for water and electricity, about 10 yuan per month.

The room in which HUYNHMINHLUC lives (two people share the rent), the rent is 410 thousand yuan, which is the new price after the government adjusted the minimum monthly salary standard for foreign employees in January 1st this year.

"Huafeng" provides a free lunch for workers, and provides free meals if they work overtime.

So the workers asked the factory to really raise salaries.

"No compromise!"

His deputy Dan Wenxiong said that their insistence is also responsible for the nearby factories, because "we compromise, other factories will follow suit".

In southern Vietnam, several factories often strike together, or several industrial zones strike at the same time, or even strike in several provinces.

In recent years, the plant has gone through 3 strikes.

Li Tianqi has arrived in Vietnam since 1989.

"Because Vietnam's wages are the lowest in Southeast Asia, in addition, the industrial zone is growing at a fast pace, and there are more and more investment enterprises. One is bigger than one, and the workers are limited. Moreover, in order to balance regional differences and increase investment in the central and northern part of the country, many northern workers are no longer coming back."

In the past, Huafeng employees accounted for 1/3 in the north, central and southern parts of the country, but this year, workers in the North almost never came back.

Workers are tight, and strikes will increase.

And in the Longan province near Hu Zhiming, as of March 10th, 24 workers strike this year, close to the strike in 2007 of the province (a total of 26 in 2007).