Leather Enterprises Look At Vietnam: Is The Opportunity For Cheap Takeover Coming?

Vietnam, far from the Indochina Peninsula, once used cheap labor and preferential policies to become an ideal place for China's labor-intensive industries to pfer.

However, since the beginning of this year, the Vietnamese economic crisis has begun to cause some Chinese enterprises to talk about "Vietnam".

Although some domestic scholars believe that Vietnam's crisis is likely to be an opportunity for manufacturing enterprises that want to enter Vietnam, the press survey found that in the face of the current situation of economic turmoil in Vietnam, many Quanzhou enterprises investors who had gone to Vietnam to investigate before were deterred from the changes.

Chuangqi's investment in Vietnam has just started. Compared with the Pearl River Delta region, it is closer to Vietnam. Quanzhou's investment in Vietnam is still in its infancy, and there are not many investment factories in Vietnam.

Although inspection teams have been visiting Vietnam in recent years, the past two or three years have not shown the same phenomenon as the Pearl River Delta.

An insider in Quanzhou's foreign trade and economic system believes that the impact of Vietnam's current economic difficulties on Quanzhou's industry is negligible.

Guo Hui (China) Co., Ltd. is the first Quanzhou shoe company to have relations with Vietnam.

As early as 2006, the industry sent news of Guo Hui's investment in Vietnam.

In this regard, Guo Hui, President of Guo Hui explained that at the beginning, the cooperation between Kuo Hui and local enterprises in Vietnam relies on Kuo Hui's technology and management advantages.

Guo Hui's input to Vietnam factory is production technology and management experience, etc. at the same time, he also placed an order with the cooperative factory, but Guo Hui did not put in cash during that period, and this cooperation mode lasted for only a year or so.

In 2007, Guo Hui withdrew from the cooperation with Vietnam, and turned the Vietnam factory into its own OEM OEM company.

"Vietnam factory is only a pure processing factory for us, and there will be extra orders for them.

Therefore, Vietnam's crisis did not have much impact on Kuo Hui. "

Ding Guosi said.

Compared with Guo Hui's way of ordering below Vietnam, Feng an leather's investment in Vietnam is "real gold and silver" investment.

Chen Ronghui, chairman of Feng an leather, said that last year, a joint venture between Feng an and a Taiwan enterprise invested in Vietnam to build a leather factory.

The joint venture factory mainly supplies leather raw materials for Taiwan shoe enterprises invested in Vietnam.

In the joint-venture plant, Feng an holding 49% and Taiwan capital holding 51%, but Feng an did not participate in the operation and management of the joint venture plant.

"Send the financial statements to us every month and divide the checks according to the proportion of investment, and give the rest to the Taiwanese."

As for the impact of the current financial turmoil in Vietnam, Chen Ronghui said that the clients of the Vietnam joint venture factory are mainly Taiwanese funded enterprises which are the foundry of international famous sports shoes brands, with a higher grade and stronger risk resistance capability. "There must be a certain impact, but in general, our joint venture plant in Vietnam is still operating normally and running well."

The chance of cheap takeover?

The current economic difficulties in Vietnam have caused most people to worry about Vietnam's development prospects.

However, some people are still optimistic about Vietnam's economy.

For example, James Adams, vice president of the East Asia and Pacific region of the world bank, which has been publicly reported by the media, thinks that the current economic situation in Asia is much better than that in the 90s of last century, and the macroeconomic policies and exchange rate policies of various countries are more flexible.

From the perspective of the rapid economic growth rate and the policies of the Vietnamese government, the challenges that Vietnam is facing will be solved in the near future.

Some domestic scholars believe that Vietnam's economic difficulties may be an opportunity for manufacturing enterprises who want to enter Vietnam.

Because of the economic difficulties, the price of real estate in Vietnam has dropped. In the case of RMB appreciation, enterprises can buy the plant cheaply, but we should carefully consider the timing of entry.

Regarding this, Feng an leather chairman Chen Ronghui quite agrees.

"Any country may have a short wave of economic fluctuations, whether it can resist such fluctuations, depends on what kind of enterprises, healthy enterprises are naturally okay, unhealthy is troublesome."

Chen Ronghui said that according to his understanding and inspection of the Vietnamese market, whether labor, land costs, or the government's supporting preferential policies, will be better than China's domestic.

Moreover, after nearly ten years of development, Vietnam's textile, clothing and footwear industries have been generally developed, and the prospects for the industry are promising.

"At least for now, I am very optimistic about the Vietnamese market and will not consider divestment from Vietnam.

On the contrary, we will continue to invest more in Vietnam in accordance with the established plan. "

Chen Ronghui said.