China'S Manufacturing Advantages Are Losing, And Foreign Shoe Companies Are Evacuated.

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The monthly salary of a garment worker is only 500 yuan, the lowest in India is 250 yuan per person per month, and 300 yuan in Bangladesh.

But in Guangzhou, hiring a lathe operator requires a monthly salary of 2500 to 3000 yuan per month, and some middle and high-end clothing enterprises pay 4000 yuan monthly salary to the workers.

The disparity of labor cost gap leads to the news that foreign capital is closed to Chinese factories, which has become a real problem before China's manufacturing industry.

According to the 2012 world investment report released by the United Nations Conference on Trade and development (UNCTAD), foreign direct investment inflows to Southeast Asia in 2011 amounted to US $117 billion, an increase of 26% over the previous year, while China's growth rate was less than 8% in the same period.

In the global economic turmoil, the cost of "made in China" has increased, and foreign enterprises have flocked to the more attractive Southeast Asian region.

China's "world factory" is facing a new challenge, and the "war" is spreading to Southeast Asia.

Happen

Foreign companies withdraw from China

This should be regarded as an old story.

In mid July, Adidas, the world's second largest sporting goods giant, announced that it would close its own factory in Suzhou in October this year.

This news quickly aroused public concern. The discussion on the weakening of the competitiveness of China's labor-intensive industries was overwhelming: with the extinction of the demographic dividend, the operating costs of labor, taxation, raw materials and other major procurement costs rose sharply, and the "made in China" advantage was no longer in place. More and more enterprises began to withdraw from China.

This is a microcosm of the withdrawal of foreign businessmen.

Statistics show that the number of foreign-invested enterprises and the amount of foreign capital actually used are decreasing.

In the first half of this year, 11705 new foreign-invested enterprises were set up in the non-financial sector of the country, and the actual use of foreign capital was 59 billion 100 million US dollars, down 13.1% and 3% respectively from the same period last year.

The most important factor for multinational companies to withdraw from China is the rise of labor costs in China.

The United States Boston business management consultants released the United States

According to the report, in the next five years, the cost of manufacturing products in the United States is only 5% to 10% higher than that in coastal cities of China.

This is quite different from that before the WTO entry.

More importantly, experts point out that labor productivity in the US is 4 times that of China. Even though labor prices in China are lower than those in the United States, it does not necessarily mean that labor costs will be cheaper than that in the United States.

As the growth rate of China's working age population slows down, international capital which has consistently sought low cost begins to look for new depressions. On this level, it is not difficult to understand the withdrawal of foreign capital and the relocation or relocation of the mainland.

Contrast

Southeast Asia has lower production costs.

When the cost advantage of China's manufacturing industry declined significantly, Southeast Asian countries such as Vietnam and Burma undertake a large number of shifts made in China with their relatively low pay levels.

The more convincing thing is,

Only pay 10 pounds (15 dollars) a week to the workers of the Kampuchea garment factories who produce the London Olympic licensed products. Even if Adidas finally rectified the average monthly wage of the local workers, it was 130 yuan (about 828 yuan), which is far from the "per capita monthly salary of not less than 3000 yuan RMB" declared by the Suzhou factory before recruiting.

In order to attract pnational giants, Vietnam, India and Bangladesh also issued many preferential policies.

Vietnam's most attractive tax incentives are foreign-funded enterprises in the first 3 years of Vietnam tax exemption, third to 5 years tax rate of 5%, followed by a tax rate of about 10%.

With foreign capital withdrawing from China, foreign investment in Southeast Asia is increasing rapidly.

In 2011, Southeast Asian countries attracted foreign investment to US $117 billion, an increase of 26% over 2010.

According to analysis, foreign investment in Southeast Asia may exceed China this year.

Not only multinational companies have been aiming at Southeast Asia, but also China's labor-intensive enterprises have begun to move abroad, seeking overseas foundry to reduce production costs.

The loss of China's largest e-commerce clothing brand, micro-blog, has pferred some of its orders to Bangladesh. Its head said the move would save 30% of the cost.

It is undeniable that because of the existence of cost advantages, more and more enterprises are aiming at Southeast Asia.