Vietnam Strikes, Typhoon Shoes Are Tough

Taiwanese enterprises in southern Vietnam are looking for the last "virgin land" for investment. However, in addition to lower production costs and lucrative earnings expectations, there are still many embarrassments such as strikes, "flexible" taxes, and Ming and dark.

Strike, power shortage, eating card to...

A series of unexpected and unexpected events made headache for Taiwanese funded enterprises from mainland China to Vietnam.

Hu Zhiming, director of a Taiwan funded toy factory in Vietnam's Economic Development Zone in Vietnam, told reporters that the most troublesome problem for him now is the power problem: Vietnam's hardware construction is relatively insufficient, and the power supply shortage is serious, so that the Taiwanese businessmen who set up factories are faced with the dilemma of not even having enough money to buy electricity. Many businessmen in are considering to build their own power plants to solve the power supply problem.

Wang Taiyun, chairman of Vietnam's Tai Tai Company, who has repeatedly promoted the inspection of Taiwanese businessmen, also endorsed Hong Qinglai's statement.

He told reporters that with the increase of foreign businessmen, Vietnam will inevitably face the problem of power shortage, because Vietnam is mainly hydroelectric power. In the non rainy season, the reservoir is short of water, that is, power shortage.

In addition, the industrial area has better electricity than the people's livelihood. Therefore, if the factory is not in the industrial area, it will be short of electricity.

The trouble of Yu Hong Qing also manifests itself in different degrees.

In recent years, due to the rapid rise in prices of raw materials and labor, coupled with the unilateral rise of the RMB exchange rate, Vietnam has attracted the attention of many Taiwan companies.

According to the survey of Dongguan Taiwan Businessmen Association, more than 200 Taiwanese enterprises in Dongguan have moved away, and Taiwanese investment enterprises who have gone to Vietnam and have pferred investment intentions account for about 30% of Taiwan funded enterprises in Dongguan.

According to Vietnamese official statistics, Taiwanese investment in Vietnam has surpassed Singapore in 2005, rising to the first place, with a total investment of 10 billion US dollars and over 3000 investment projects.

A large number of "down south" Vietnamese enterprises are looking for the last "virgin land" for investment. However, in addition to their low production costs and generous profit expectations, there are still many embarrassments such as strike, "flexible tax" and "Ming and dark".

Most of us are afraid that the strike is not yet a problem of strike, but I believe he will soon encounter it. In Vietnam, strikes are very common.

"Since I set up a factory here in 2000, I have encountered nearly 20 strikes, averaging more than two times a year.

There were 5 strikes in the whole factory. "

Li Tongan, a Taiwanese Footwear boss in Sha Li Industrial Zone, Vietnam, complained that Vietnam is different from mainland China. Strikes are like plagues, which erupt every year.

"The industrial zone is growing at a fast pace, and more and more enterprises are investing. One is bigger than one, and the other is limited.

After the strike, the workers will not be punished and still be able to continue their employment. "

Lee and Lee shared the fear of strike: "those Vietnamese workers who take the lead will obstruct, intimidate and beat other workers who want to go to work. What is more surprising is that some of the police who came to deal with the strike even abetted and urged workers to strike."

The strike problem has been troubling Vietnam's Taiwanese businessmen for many years. Taking Pingyang Province, the most concentrated province of Taiwan businessmen, for example, there are about 400 to 600 small and medium-sized enterprises, and 80% of them are suffering from strikes.

Although the Vietnamese government formulated the strike law in the year before last to regulate the strike, the strike went on year after year.

According to the Vietnamese statistical data provided by the Vietnam representative office in Taiwan, Vietnam has more than 400 strikes throughout the year, but this year, by the beginning of July, it has more than 300 times. This year, more than 230 Taiwan enterprises have been victimized.

The strike is most intense in Hu Zhiming and Pingyang, Kok Chi, Longan, Xining, and Nai.

Wang Taiyun gave a more authoritative explanation for Vietnamese workers' "high frequency" strikes: Vietnam lacks vocational training centers, and employees have to train themselves.

Especially when workers are found in rural areas, they just can't adapt themselves to factories.

In addition, although Vietnam's human quality is better than other Southeast Asian countries, it has a strong understanding and hard work, but the turnover rate of talent is quite high. The employees have a lot of money in their eyes.

King Wang agreed to interpret all these as cultural differences.

He told reporters that Vietnam's life is romantic and lax, often more arrogant.

The influence of French colonial culture is relatively large. The roadside cafes and the more expensive mobile phones and locomotives of young people are also seen in the wind. Even the red packets are also called "coffee money".

In addition, the postwar population situation of many young men and women makes the roadside full of women making money in stall work, and men are chatting on their feet.

He said Vietnamese workers like to go to the roadside to drink beer after work to chat, and even rural people live more than Americans.

Under romantic hedonism, Taiwan enterprises are naturally "unpopular" if they want Vietnamese workers to work overtime.

The law can "coordinate" whether or not to work overtime or belong to the enterprise's controllable category. However, the legal requirements for investment are difficult to be affected by Taiwan enterprises.

Wang Taiyun said that there is a big gap between Vietnam's regulations on foreign capital management and Mainland China.

In terms of land law, although both China and Vietnam only use the right to sell foreign goods, Vietnam usually rents land use rights to industrial areas, and returns them to industrial areas, and later pfers land use rights to others through industrial areas.

In mainland China, land use rights are generally obtained directly from government land management departments.

The system of land use right in Vietnam is usually rented for 50 years, and it can only be leased to the industrial area for 30 years.

But because of the factory building above the land, the rent is usually paid more than once in 50 years.

The selected industrial area must be closely related to the local government in order to meet the day-to-day operational needs of Taiwan businessmen.

If you do not set up factories in the industrial area, you will not only have no tax preferences, but also have to operate the local relationship with you.

Wang warned that Vietnam is very strict in environmental protection, especially near residential areas.

The primary problem of investment in Vietnam is to carefully select industrial zones.

The industrial area is the coordinator of government departments in the future.

Unless Taiwan is a large investment case, it will directly talk to the premier about preferential terms. Otherwise, there is no special government investment promotion unit to do investment promotion.

This is quite different from that in mainland China, where the investment units at all levels are invited to provide business assistance in the future.

Tax revenue has "elasticity". Preferential conditions enjoyed in Vietnam are often sought by governments in various industrial areas.

Taiwanese businessmen can not enjoy preferential tax laws unless they are in the industrial zone unless they go to the government.

Wang Taiyun introduced that Vietnam's preferential policies on income tax are quite complicated. Basically, the tax rate is 28%, but it can be reduced to 20%, 15% and 10%. The preferential period is also divided into 10 years, 12 years and 15 years.

The main variable that affects preferential conditions is how the industrial area was originally striving for it. It may be that the first phase of Taiwan businessmen enjoys the second stage of entering Taiwan businessmen.

Of course, the Taiwanese businessmen who are not in the industrial area will not get preferential treatment unless they are striving for them by themselves.

In value-added tax, the input tax can be refunded.

During the period of setting up factories, the 10% value-added tax is often ignored when purchasing equipment.

Tax rebates are applied every month, and the application is invalid after three months.

Many Taiwanese businessmen have lost a lot of knowledge because they do not know the regulations.

Besides, Taiwan enterprises also play a role in the soft environment of investment.

Wang said that there are still many "PR" fees in Vietnam.

Taking traffic police on the road as an example, its monthly salary is only 810 thousand yuan (equivalent to 500 yuan), which is much lower than that of the average factory worker. Therefore, it is common to "blow a whistle" (catch a violation) and collect 50 thousand more coins.

Officials from customs, taxation, labor and other departments will inevitably spend a little "PR fee" when they come to the factory, but they will not use the assault style in mainland China. They will notify and produce documents in advance.

Other customs inspection fees, such as the urgent need to pay, how fast is possible.

At present, "green clearance" (not checking cabinets) of the "coffee money", usually about 500 thousand or more coins.

Although China has some advantages in investment costs, many Taiwanese companies only regard it as an investment spare tire and will not leave the mainland.

Ye Chunrong, President of the Dongguan Association of Taiwanese businessmen, told reporters: "it is not easy to move small and medium-sized Taiwanese businessmen to Vietnam or Taiwan now.

Many Taiwanese businessmen intend to keep watching on the mainland side and go to Vietnam to set a spot. "

He believes that the core of Taiwan businessmen's problems lies in the fact that Taiwanese businessmen are essentially processing and brand subcontracting. They do not have access to the market and the market. They are easy to be controlled by the situation. Taiwan businessmen mainly take the European and American markets as the main body.

Li Li Tong still expresses his preference for the investment environment in Dongguan, Guangdong, China. He opened a shoe factory in Dongguan in 1996.

"When our company is in conflict with workers, the government always takes the overall situation into consideration. In Vietnam, workers and companies are in conflict, and the government is always on the side of workers."

He explained to himself that he also started a factory in Vietnam, which seemed to represent the "voice" of the Vietnamese businessmen. It is very difficult to do the export of shoes now. The pressure from the mainland is too great. Vietnam has more advantages in this respect. "Vietnam is spare tire. If the business on the mainland is not able to continue, at least Vietnam can maintain the situation and support it for some time".

Sun Lijian, vice president of School of economics, Fudan University, Shanghai believes that although the cost is much higher than that of Vietnam, China is still the most popular industrial investment place in the world.

More and more multinational companies have adopted a strategy of "China +1", that is, in addition to investing in the mainland of China, they also set up expanded operation bases in Asian countries outside the mainland, but Vietnam has become the first choice for Taiwanese businessmen.

"This is more consistent with China's overall vision.

Higher technological content and higher added value are what China needs.

Those industries that rely solely on low labor costs should have shifted. "