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    Jinjiang Shoemaking Enterprises Will Aim At Vietnam Market

    2007/9/22 0:00:00 134

    Jinjiang entrepreneurs focus on Vietnam market



    At present, when the shoe industry in Jinjiang is confronted with difficulties such as difficult recruitment of workers, difficult land purchase, fierce competition for homogeneous products and sharp increase in environmental pressure, entrepreneurs begin to look for new growth points to break through these bottlenecks in the industry.

    Vietnam, a rapidly rising shoe industry, has naturally become the focus of attention of Jinjiang entrepreneurs.



    Shoe companies - pioneers in Vietnam



    Guo Hui Footwear Company is undoubtedly a pioneer in developing Vietnam's market.

    A few years ago, when Jinjiang shoe companies also focused on expanding their production scale locally, Guo Hui shoes company began to invest in Vietnam and worked with local distributors to produce Kuwait's brand shoes.

    According to the general manager of Guo Hui shoe industry Ding Guo Si, the company currently has four shoe making lines in Vietnam to carry out the production of sports shoes.

    With the help of cheaper local labor force and preferential policies supported by local governments, the new production base has a certain cost advantage compared to the domestic shoe manufacturers at present.



    Wide market for leather and shoe materials



    At present, Vietnam's rapid development of shoe making industry is mainly based on low - tech low shoe production.

    The development of leather shoe material industry matched with the shoe making industry is lagging behind.

    The demand for shoe materials in Vietnam is growing rapidly with the development of shoemaking industry.

    Cai Qingsan, general manager of new Zhongyi shoes material, introduces that the development of Vietnam's market will be a great breakthrough for the development of shoe material enterprises.

    Vietnam's footwear industry is mainly concentrated in Hanoi and Hu Zhiming. The corresponding shoe material supporting industry chain has not yet been established, and the shoe material market has broad prospects.

    And Xu Huinong, general manager of Hesheng leather, also said that more and more leather enterprises will have great potential in the Vietnam market.



    Old customers in shoe machine industry bring new market



    At present, Vietnam's shoe-making enterprises are mainly Taiwanese funded enterprises.

    Most of the Taiwanese funded enterprises invested in factories in Guangdong, Fujian and Zhejiang.

    In recent years, the production costs of the footwear industry in the mainland have risen rapidly, and these enterprises have turned their attention to Vietnam, India and other places with lower production costs.

    A large number of funds quickly became industrial scale after entering the local area.

    And because of the production of low-grade shoes, many Vietnamese enterprises were buying second-hand shoe machines eliminated by China's inland shoe manufacturers.

    Now many local enterprises are expanding the scale of production regulations, and have begun upgrading the old machinery.

    According to Wu Jianjun, general manager of Hongan shoe machine, who has just returned from Vietnam, the shoe machine and hydraulic press produced by the company have begun to provide equipment renewal services for Vietnamese shoe manufacturers.

    And many of the manufacturers in Vietnam are old customers of shoe factories. These old customers also drive the sales of products.



    There are differences in immature industry culture.



    "Vietnam is like Jinjiang, which is just 90 years old when your shoe industry is just beginning to grow."

    Ding Haiyang, general manager of Yu Guan shoes and clothing, said: "Vietnamese enterprises can attract foreign buyers at lower prices and faster export procedures, which is particularly evident in the low-end shoes market.

    Most of our company's low price orders have been pferred to Vietnam in the past two years.



    Although at present, emerging countries such as Vietnam's footwear industry are developing, with its low land and labor costs and local government's support policies, attracting more and more international funds and attention.

    But domestic enterprises should also clearly see that the local industry is in the initial stage of development, and the various systems of industrial development are not perfect.

    Guo Hui, general manager of Guo Hui shoes, who has experienced Vietnam's investment, said that the Vietnamese market was extensive, and the local government did not have enough supervision on the development of the industry, and the land ownership was chaotic, which led to many problems when investors bought land use rights.

    The unique local life culture makes it impossible for workers to work overtime in a busy season like Jinjiang enterprises.

    Local workers are generally reluctant to work overtime.

    The labor law of Vietnam stipulates that serious factories insist that workers must be processed.

    This brings inconvenience to enterprises during the busy season.



    Ding Guo general manager finally said: Vietnam has a certain advantage over the Jinjiang area in terms of the cost of land for human use.

    However, Jinjiang's mature investment environment is also unmatched by Vietnam.

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