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    Vietnam Shield Depreciated &Nbsp; Quanzhou Service Enterprise Plans To Set Up Processing Plant In Vietnam.

    2011/2/28 10:16:00 143

    Garment Export Factory

    As of 24 days, according to the middle price of the exchange rate, the maximum value of 1 yuan would be 3175 Dong Dong, and 1 yuan at the end of last month could only be exchanged for 2961 Dong Dong.

    In just one month, the Dong shield depreciated to RMB 7%, to some Quanzhou.

    enterprise

    The depreciation of the Vietnamese shield has both risks and business opportunities.


     

    low and medium grade

    Order

    Flow to Vietnam


    "Textile industry is one of the main industries in Vietnam, and Vietnam Textile accounts for it.

    Exit

    About 20% of the total, the depreciation of the Vietnamese shield may have a certain impact on the export of low-end textiles in our city.

    Lin manager, a foreign trade company in Quanzhou, said that a customer from Hongkong had pferred some orders to a garment factory in Vietnam this year. Vietnam's devaluation has made Vietnam export textiles cheaper, which will attract some international buyers to shift more middle and low clothing orders to Vietnam.


    Zheng Ping, manager of the foreign trade department of Bao de group, believes that Quanzhou's textile and clothing products are mainly exported to the European and American markets. The customers of these developed countries and regions have strict requirements on product quality and delivery date. Due to long-term cooperation, the main customers in Europe and the United States will not pfer orders in large quantities just because Vietnam's textiles are cheaper.


    "In recent years, Quanzhou's exports to Vietnam have gradually increased. The depreciation of the Vietnamese shield means that Vietnamese customers can buy less goods with the same money, which may cause Vietnamese customers to reduce the volume of orders."

    Quanzhou entry-exit inspection and Quarantine Bureau responsible person said, our city exports to Vietnam is not large, at present, Vietnam's export products are mainly batteries, valves, machinery parts, small household appliances and so on.

    According to statistics, Quanzhou exported to Vietnam in 2010, a total of 124 inspection products, valued at $6 million 690 thousand.


    Cost reduction for Vietnam to invest in factories


    "The depreciation of the Vietnamese shield means that the cost of setting up factories in Vietnam by Quanzhou enterprises is further reduced."

    According to the insiders, Vietnam's labor market is larger, and the average monthly salary of local factory workers is about $136. Due to the expansion of labor demand and the increase of labor costs, some clothing and sports shoes manufacturers in Quanzhou plan to visit Vietnam and set up processing plants this year.


    Mr. Lin, who once attended the exhibition in Vietnam, said Vietnam's political situation is relatively stable, its security is good, and its foreign investment policy is relatively loose. However, it should be noted that Vietnam's textile and footwear industries are at a developmental stage, with incomplete industrial chains and poor local matching capabilities, making printing and dyeing, washing and packaging materials more expensive than domestic prices.

    In addition, local workers are generally reluctant to work overtime because of their unique local culture.


    Lin suggested that Quanzhou enterprises should conduct serious investigation and market research before going to Vietnam to carry out investment cooperation, so as to avoid blind investment and fully understand the laws and policies and investment environment of Vietnam's foreign investment, such as setting up factories with joint ventures with Vietnam, so as to deepen understanding of Vietnamese partners and seek reputable partners.

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