The Impact Of Vietnam Shield Depreciation On China'S Footwear Manufacturing Industry

February 15th news continues to appear

Vietnam has devalued the Vietnam shield for four times in the past 15 months.

Among them, in November 2009, the depreciation rate was 5.44% in one time, 3% and 2.09% respectively in February and August last year, and the depreciation rate exceeded 9% in February 11th this year.

Wang Jinbin, a professor at the school of economics at Renmin University of China, said that under the inflationary pressure, Vietnam made the exchange rate of the Dong shield to "market level" and reduced the fluctuation range after devaluation.

After the depreciation of the Vietnamese shield, one of the main concerns of the market is whether it will drive the corresponding depreciation of other Southeast Asian currencies.

After all, instant messaging F and Citigroup have warned that the depreciation of the Dong shield may trigger a chain reaction in Asia, and the market does not rule out the possibility that the Vietnamese shield will depreciate again.

Based on domestic concerns, what is the impact of the continued depreciation of the Dong shield on China?

According to the data, Vietnam has maintained an annual average growth rate of about 7% annually from 1986 to 2006, which is second only to China in Asia.

The rise of the "Asian tiger" relies on cheap labor and abundant natural resources, which are threatening China's low-end manufacturing exports.

According to local media reports, in the shoe industry, for example, in the first two years, a shoe factory worker in Vietnam had a monthly income of about 500 yuan, while workers in Chengdu, Sichuan had a monthly income of at least 1000 yuan.

With the acceleration of RMB appreciation, Vietnam's price advantage is more and more obvious.

Taking the textile industry as an example, a recent research report on 385 international buyers revealed by global resources (seven lobal source) shows that Chinese textile exporters have felt that orders are shifting, because 31% of respondents said they would increase purchases from Vietnam. One of the reasons is that Vietnamese products are cheaper than Chinese products by 30%.

It is not hard to imagine that the Vietnam shield is again devaluating again, and cheap Vietnamese products will further "erode" the market share of China's similar export products.

This is not the only side effect. According to Sun Huaibin, deputy director of the China Textile Economic Research Center, the devaluation of the Vietnamese shield will directly affect the export of textiles and accessories to Vietnam.

I believe that after all, Vietnam shield is not an important currency in the international market. The Vietnamese market can not be compared with overseas markets such as the US and Europe. However, the depreciation of the Vietnamese shield has brought a waking up to China's foreign trade - low added value, labor intensive export industry is fragile, industrial pformation is imperative, and the renminbi is still rising.