Pearl River Delta Businesses Stop Pferring Production Lines To Vietnam

In the context of the industrial upgrading of the Pearl River Delta region, some Hong Kong and Taiwan businessmen have chosen Vietnam as a new investment destination. Vietnam's economy is falling rapidly in the adjustment period after sustained growth. The Vietnamese businessmen with production bases in Vietnam say that the sudden cooling of Vietnam's economy has hindered the Pearl River Delta investors from moving their production lines in the Pearl River Delta to Vietnam.

Vietnam's investment environment is changing rapidly. The comprehensive media reported that Huajian group, which operated footwear processing in Dongguan, started the process of pferring the PRD factories to Vietnam many years ago, and successfully opened a new production workshop in Vietnam.

However, the so-called needle has no two heads. Although it has a competitive production cost than the Pearl River Delta, it has to face the unstable social environment in Vietnam. In particular, because of the surging tide of prices, the continuous strike tide is shaking the pace of the pfer of Hong Kong and Taiwan enterprises to Vietnam. Zhang Huarong said that although he invested in Vietnam several years ago, the group has only pferred two shoe production lines to Vietnam.

In fact, China's reform and opening up policy has created a stable investment and business environment in the past thirty years of reform and opening up. Although the acceleration of RMB appreciation has brought difficulties to the operation of Hong Kong businessmen, the change of labor environment has increased production costs, but the relatively stable social environment of Southeast Asian countries, China's stable business environment and good industrial matching are becoming an important factor in attracting Hong Kong capital to stay in China's development.

Experts: the crisis can not be diffused. Vietnam has been placed in the hope of replacing the Pearl River Delta World Factory by the western society. However, it has taken the lead in the collapse of high inflation. Will Vietnam become the fuse for the next round of economic crisis in Southeast Asia?

Some scholars believe that although Vietnam and Southeast Asian countries are also facing inflation problems, Vietnam's problems are more often caused by the existence of their own economic contradictions. Instead, Southeast Asian neighbors, even China, have a far better foundation than Vietnam, and economic management means far more advanced than Vietnam.

In addition, the socialist directional market economy implemented by Vietnam is essentially different from the market economy of Southeast Asian countries. The government has stronger economic management capability. This shows that Vietnam has taken more than twenty strong measures to curb the excessive growth of inflation, and even to brake the fast-growing economic train.

The most important reason is, of course, because Vietnam's dependence on foreign countries is still weaker than that of its Southeast Asian neighbors, and its economic scale is limited, and the proportion of the trade volume with the neighboring countries is still low. The problems in Vietnam at most have slowed down the pace of entry to the region, and have not reached the level of large-scale economic problems, so Vietnam's economic crisis will only alert the neighboring countries.