Orders Surged &Nbsp; Vietnam'S Sports Shoe Industry Is Catching Up With China.

December 9th, 1~11 month, Vietnam

This year, with the global economic rebound,

According to the latest statistics from the General Administration of statistics, Vietnam's sports shoes output increased by 20.2% over the 1~11 months this year, higher than the average level of Vietnam's industrial production.

According to the data released yesterday by China Leather Association, the total industrial output value of China's leather shoes enterprises above Designated Size reached 287 billion 200 million yuan in 2010 1~10, an increase of 23.4% over the same period last year.

In an interview yesterday in Dongguan, a Taiwanese footwear enterprise manager, LAN Xuan Pu, said that a large number of orders for global sports shoes are in the hands of Taiwanese businessmen. In recent years, Taiwanese businessmen are obviously moving to Southeast Asia and other regions. This is mainly due to customer requirements such as Nike and Adidas. Manufacturers can not produce too many products in one country or region. The order of Vietnamese sports shoes is growing rapidly. Now the production capacity is gradually approaching saturation, and the order of sports shoes has begun to shift rapidly to Indonesia, India and other countries.

However, LAN Xuan Pu is not optimistic about China's footwear industry. He believes that the high labor cost and fluctuating exchange rate cause the competitiveness of Chinese shoes to be weakened. The average monthly salary of Dongguan shoe makers is basically over 2000 yuan. The company's wage cost has risen by 30% this year, but it has not been able to make money in one year, and the shoe factories have been closed down. It is estimated that a number of shoe factories will be closed or pferred.

But the situation should not be so bad as the last round of collapse. After all, many enterprises have adapted to environmental capacity through pformation and upgrading.

Since the 90s of last century, the footwear industry in Taiwan has been pferred to the mainland on a large scale. Wu Zhenchang, chairman of Guangzhou Chuangxin shoes industry, is one of them, pferring all the factories from Taiwan to Guangzhou.

During the peak period, he once reached 20 thousand employees in the shoe factory in Guangzhou. After the outbreak of the financial crisis, the workers were reduced or reduced, and there were only about 6000 people left. This year, orders are rapidly recovering, but Wu Zhenchang still keeps the original production scale without expanding the number of workers.

Wu Zhenchang denied this in an interview with reporters. He said that because of the decline in profits, he was careful to take orders and did not want to blindly expand production again. Only RMB appreciation had eaten 2% of the profits. Compared with Southeast Asian shoemaking enterprises, the cost competitive advantage of Chinese shoe enterprises was becoming weaker and weaker.

Wu Zhenchang said frankly, he is more optimistic about the Southeast Asian footwear industry, and now the production facilities of Southeast Asian sports shoes are constantly improving. With the launch of the China ASEAN Free Trade Area this year, the export of shoes from China to ASEAN is free of duty, while Southeast Asian shoe products can also enjoy zero tariff entry into the Chinese market. He does not rule out the possibility of setting up factories in Southeast Asia {page_break}

At present, some foreign shoe factories in Dongguan have pferred their production lines.

Chen Zheyang, the business director of Dongguan Cheng Feng Machinery Co., Ltd., said that 10 years ago, with the pfer of Taiwan shoe enterprises to Dongguan, the customers were basically foreign shoe factories which were exported by OEM. Now, obvious changes have taken place. Labor costs are rising rapidly. With the lack of workers, many foreign shoe factories that are engaged in export sales are moving inland and Southeast Asia. Foreign shoe factories have declined to the equipment purchased by enterprises, accounting for less than half of the total sales of the enterprises.

Li Peng, secretary-general of the Asian Footwear Association, returned from a visit to Vietnam not long ago. He told reporters yesterday that Nike, Adidas and other international sports shoe tycoons asked the cooperating shoe factories to set up some sports shoes production lines in Vietnam, mainly because tariffs were cheaper than exports from China.

Over the past few years, some foreign shoe factories exporting to Europe have shifted to Southeast Asia. However, the pfer of Chinese local shoe enterprises to Vietnam is not obvious, and Vietnam is also suffering from shortages.

"In the last few years, Vietnamese shoes enterprises mainly concentrated in Hu Zhiming City, in recent years because of the lack of labor pfer to the Hanoi region, now Vietnam's labor cost is also gradually rising, workers' monthly salary of 1000 yuan RMB, and the Pearl River Delta region a few hundred yuan."

Li Peng said that although Vietnam's labor cost is relatively cheap, Vietnam's footwear industry is unable to catch up with China in terms of production technology, matching and proficiency of workers. It is still mainly produced by sports shoes, and the order of women's shoes, such as processes and designs, can hardly be pferred to Southeast Asian countries at once.

Guo Xiaoping, chairman of Dongguan Huahong shoes industry Co., Ltd., said that whether or not to pfer Southeast Asia should be considered from the direction of enterprise development, instead of taking into account only the labor cost factors, reducing costs by pferring is not a long-term solution. The enterprise mainly engaged in women's shoes, and through the design innovation, it can digest the rising labor cost.