Transformation Of Chinese Shoe Enterprises To Adapt To Vietnam'S Shoe Making Enterprises

Data show that from 1 to November, 2011, Vietnam

Output value increased by 20.2% over the same period last year, and the output value of leather shoes enterprises at medium scale increased by 23.4% compared with the same period last year.

According to the latest data, Vietnam's total exports amounted to US $148 billion 50 million in the first 8 months of this year, up 13% compared with the same period last year, of which 4 billion 760 million dollars for footwear.

Advantage of Vietnam's established shoe factory

In recent years, the rapid growth of Vietnam's economy has huge market potential.

Vietnam began to reform the market economy in 1986, and its economic growth rate reached a record 7.4% in 2003.

Vietnam has 800 leather and footwear enterprises, with an annual output of 780 million pairs of shoes, and shoe companies are mainly concentrated in Hu Zhiming, Pingyang, Haiphong and Hanoi.

The cost of labor in Vietnam is about 2/3 in China.

At present, China's monthly salary has reached 3000 yuan -4000 yuan, and Vietnam is less than 2000 yuan.

At the same time, the rent of factory buildings is only about 1/3 of the domestic level.

The most attractive part of Vietnam is its tax preferences, products sold to Japan and South Korea and India and other countries can achieve "zero tariff", it can also bypass the direct export to Europe and the United States and other places to face the higher trade threshold, foreign-funded enterprises in the first 3 years of Vietnam tax exemption, third to 5 years, the tax rate is 5%, the post tax rate is about 10%, lower than the domestic level.

Setting up factories in Vietnam not only can make use of local superior resources, but also has many policy benefits, but Vietnam has a gap with China in terms of high technology, infrastructure and services, which is precisely the market of Chinese shoe enterprises.

Promoting China's shoe industry pfer

At present, there are more than 30 thousand shoe making enterprises in China, with an annual output of over 100 trillion pairs of shoes and about 4000000 employees.

It accounts for about 70% of the global market share.

However, domestic labor costs increase, raw materials and export tariff barriers affect the development of footwear industry, making the footwear industry in Southeast Asia develop rapidly, especially Vietnam.

China's macroeconomic regulation and control measures such as tight monetary policy, strict land supply slowed down the growth of industrial investment, and the acceleration of RMB appreciation, the formal implementation of the integration of the two taxes, and the entry into force of the new labor contract law weakened the domestic cost advantage, and more and more shoe enterprises began to pfer to Vietnam.

Although Vietnam's footwear industry has been developing rapidly, it is still 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 women's shoes, such as processes and designs, are still difficult to develop in Vietnam.

According to the analysis of relevant experts in the industry, the development of China's footwear industry will inevitably move from the low-end market to the high-end market, from quantity to quality and efficiency. Upgrading and upgrading is the way to go. Therefore, in terms of quantity, the production and export volume of China's footwear industry may decline in the future, but the quality will be improved, and the price of products and the total value of exports will continue to grow.

China

The pformation and pfer of industry is the trend of the times. Some enterprises with strong innovation ability and standardization will go to the road of pformation of industrial upgrading.

More and more Chinese enterprises recognize the importance of brand and are welcomed by consumers and become the backbone of China's footwear industry.