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    RMB Appreciation And High Cotton Prices. Guangdong And Hong Kong Businessmen Are Leaving ASEAN.

    2011/2/17 12:56:00 106

    Mainland Garment Manufacturers

    According to the Hongkong Wen Wei Po, the renminbi appreciated. Cotton price High and Guangdong's raise of minimum wage is more than 18%.


    In addition to increasing costs, limiting production and limiting short lists, some Japanese businesses have recently moved "moving factories" to ASEAN countries such as Vietnam and Kampuchea.


    Because of its abundant labor force, cheap labor and tax concessions, Vietnam has provided four years of no profits tax and nine years of tax concessions to attract foreign investment. Recently, it has greatly reduced its currency by 9% and enhanced its export competitiveness. In addition, its exports to Japan and other places enjoy duty-free concessions. Many Japanese, Korean and Taiwanese companies have shifted to local factories and manufacturing industries. Hong Kong businessmen More and more choose to leave.


    Recently, more and more Guangdong manufacturers have moved their factories to Vietnam or Kampuchea. Hongkong's TDC's assistant chief economist, he Da Quan, said that to Vietnam's manufacturers, Vietnam is a new production base. He believes that there are two attractions for Vietnam to set up factories. First, many Vietnamese products can be exported to Europe and the United States to enjoy tariff free or low tariffs. The second is the lower cost of setting up factories, which can attract Hong Kong businessmen to set up factories locally. He pointed out that, because of the abundant supply of labor force in the Vietnamese youth, the local labor cost was low, and the minimum monthly wage last year was about 70.45 US dollars (about 548 yuan), with sufficient conditions to become a production base for labor-intensive industries.


    Manufacturers who have set up factories in Vietnam point out that Vietnam launched in recent years. Attract investment The preferential policies are very similar to those in the early years of the mainland. On the whole, the longest tax exemption granted to Vietnamese enterprises in the four years and nine years' tax concessions has made many companies feel enchanted. He said that as China's wages rise, raw material prices surge and RMB appreciation, the cost advantage of setting up factories in the mainland is weakening. Vietnam has the opportunity to break through. So far, many Japanese, Korean and Taiwan companies have moved to Vietnam to set up factories. If Hong Kong businessmen hesitate again, they may miss the opportunity.


    The manufacturer pointed out that in the PRD region, even though the monthly salary of 2000 yuan is not easy to recruit skilled workers, Vietnamese workers still maintain the salary level of Chinese migrant workers at the end of 80s, and many Vietnamese rural young people are working out of town and earn a monthly salary of about 150 yuan (about 1167 yuan), which is three to 40% lower than that of the mainland.


    Li Guoquan, a joint garment director who has invested more than 5 years in Vietnam and has 1200 employees, said that factories in the mainland, Taiwan, Thailand, Malaysia, Hongkong, Macao and Indonesia were still the lowest in Vietnam, and the local wastage rate was low. Therefore, the company still regards Vietnam as an ideal factory site, and it is likely to increase investment in the future. "Although inflation is high in Vietnam, we need stable employees, which will not affect production, which is the most important thing."


    For more and more foreign businessmen to invest in Vietnam in recent years, the representative of Vietnam textile and Garment Association explained that the export of clothing and textiles produced in China to Japan often has to pay about 10% of export tariffs. But Vietnam's exports to Japan can be exempt from customs duties. Most of the foreign investment in Vietnam's main investment funds for faster recovery of garment factories is not investment in dyeing and textile industry. At the same time, the cost of electricity in the mainland has been rising in recent years. It is estimated that China's electricity cost is two times that of Vietnam, forcing more manufacturers to open factories in Vietnam and other ASEAN regions.


    As a matter of fact, Vietnam is still an important springboard to ASEAN. In recent years, many manufacturers have been investing in Vietnam step by step. Wen Zhuoran, manager of the risk management department of the Hongkong group, also pointed out that the performance of ASEAN's market economy will be better. Although the tightening of economic policies and the demand of importing countries in Europe and the US continue to slow down, demand growth in the beneficiary area is expected to maintain economic growth at 8% level this year.


    Apart from Vietnam, Hong Kong businessmen are going further and further away. Yan Baoling, vice chairman and managing director of Feida hat industry (1100), said that since last November, the group has awarded the order to the factories in Bangladesh, and plans to produce half of the production volume in the next three years. She admitted that the mainland raised the minimum wage level every year, and the monthly salary of the group's Shenzhen factory increased by 34% last year. At present, the monthly salary of each group of car clothes workers in the mainland is about 3200 yuan RMB. On the contrary, the workers in the Bangladesh factory start six days a week. The group only needs to pay 60 yuan (about 395 yuan) per month, and there is a big difference between the two salaries.

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