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Why Did The Textile Industry Die At Low Wages?

2010/9/3 9:56:00 92

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Vietnam, according to Vietnam investment report, Vietnam

Textile and clothing

The association said that Vietnam's textile and garment export enterprises are in good condition.

Although it is only the third quarter, many enterprises have achieved export orders for the whole year, and export prices have increased by 15% over the same period. Some enterprises even signed export orders for next year.

For example, Vietnam TNG trading investment company has signed a US $45 million order with the US company, and the company is negotiating with its partners about the export contract next year.

This news is closely related to domestic and foreign trade orders, which is difficult to find the price of processing plants, raw materials and labor.

The textile and garment industry migrated from the early Europe and America to Japan, Korea, Taiwan and other countries and regions, and later came to China's Pearl River Delta and Yangtze River Delta region, and then began to pfer to the inland areas of China.

In the 80s and 90s of last century, industrial migration in Hong Kong, Macao and Taiwan promoted the rapid development of the processing trade in the Pearl River Delta region.

Now,

Migration tide

Open again.

Many governments and enterprises are prepared for this. But after migration, do we still have to rely on cheap labor to maintain competitive advantage?

China's garment industry has exceeded Japan's development achievements over the past 50 years in only 25 years.

Clothing industry

The trajectories of migration are quite complicated.

For children's clothing, the earliest production and processing base for children's clothing was in Foshan, Guangdong. But in the late 90s of last century, it began to move to Quanzhou, Fujian. In less than 10 years, the children's clothing industry base was once again moved to Huzhou, one of the reasons is that the comprehensive cost of Huzhou is even lower.

Similar to the trousers industry, the earliest trousers production base was in Guangzhou, then pferred to Jinjiang, Fujian, and now pferred to Henan, Hunan and Liaoning, and gradually moved to inland areas where labor and land were cheaper.

Obviously, the Chinese manufacturing industry and the foundry factories are facing a dilemma now. Too high wages will weaken the cost advantage of the enterprises, and the low wages are contrary to the direction of decent work and dignity.

Moreover, the cost gap brought about by immigration is shrinking in the interior of China.

After the relocation of enterprises, the local employees' basic salary is also a wage standard of 1200~2000 yuan, which can not save much labor cost. The purchase of real estate and reconstruction of factory buildings is a huge expense.

In this sense, migration can really extend the lifeblood of an industry, but if an industry without a brand depends on labor and migration alone, without brand, it means no competitiveness and no added value.

Industrial pformation will not happen overnight, and the era of cheap labor may continue. However, labor-intensive enterprises, which rely on laborers to make profits, will face great pressure to eliminate and exchange blood in this migration.