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    Is Vietnam Really OK Instead Of China?

    2015/9/8 13:05:00 34

    Footwear Industry TrendsShoesWomen'S Shoes

    In recent years, the Chinese economy has slowed down, and some Vietnamese believe that the opportunity to replace China's leading economy has come.

    Use the sign "no Chinese goods".

    Made in Vietnam

    Replace.

    This is just wishful thinking.

    According to Xinhua news agency, an entrepreneur from Vietnam has opened a large shopping mall in Hanoi, which is open to local businesses and sells only domestic products, hoping to help Vietnam reduce its dependence on imports from China and other countries.

    Xinhua International client survey found that whether Vietnamese officials or folk, "Vietnamese Vietnamese goods" calls for a long time, but imported goods still occupy a considerable share in the Vietnamese market.

    Some experts pointed out that the key to popularizing "Vietnam manufacturing" is to effectively enhance the international competitiveness of Vietnam's manufacturing industry.

    The countries concerned want to be able to use "

    Homegrown products

    There is nothing wrong with developing the national economy.

    However, some practices in Vietnam have not been seen in this way. Are they related to political factors?

    In 2015, Vietnamese Prime Minister Ranjig proposed that we should strengthen economic independence and avoid excessive dependence on a market, which should be regarded as the central task of the current evolution of the South China Sea.

    Ranjig called for various measures to vigorously develop the domestic market, diversify the import and export market, open up and develop new markets, and avoid over reliance on China or any other economy.

    The guidance document put forward by Ranjig said: "strengthen publicity and advertising work, strengthen market research, improve the status and prestige of domestic products, replace imported products and reduce external dependence.

    In 2014, Ranjig visited New Delhi from 27 to 29 in October. He was said to further deepen the strategic partnership between the two countries, especially in the fields of security and economy and trade.

    During his visit to India, Ranjig held talks with Prime Minister Modi of India, met with President Mukherjee, and exchanged views on promoting bilateral relations and international strategic issues of common concern.

    It is reported that Ranjig's visit to India will strengthen economic cooperation with India to reduce its dependence on China.

    Over the years, trade between China and Vietnam has been unbalanced, and the trade volume between China and Vietnam reached 50 billion US dollars in 2013.

    However, due to the different structure of products, Vietnam's exports to China are mainly crude oil, rubber, marine products and so on, while imports from China, such as machinery, chemicals and electronic products, have led to a large surplus in Vietnam.

    Vietnam is very dependent on China's economy.

    In May 2014, the Sino Vietnamese relations caused by the South China Sea dispute in Vietnam and Vietnam had already affected the economic development of Vietnam. Vietnam's main stock index fell 5.9% in May 8th, the largest single day decline in 13 years.

    This has also brought great shock to Vietnam.

    Therefore, Vietnam hopes to find new partners to reduce its dependence on China.

    The bilateral trade between Vietnam and India totaled 5 billion 230 million US dollars in 2013, an increase of 30% over 2012.

    The two sides aim to achieve the goal of US $15 billion by 2020.

    At present, India has 68 investment projects in Vietnam, amounting to US $1 billion.

    When India president Mukherjee visited Vietnam in mid September, the two sides had signed an agreement. New Delhi promised to provide Hanoi with an export credit amount of $100 million to support the two countries' cooperation in defense and oil and gas resources development.

    According to India media reports, the Vietnamese Prime Minister's visit to India will focus on cooperation with India in security and economic and trade fields.

    This shows that Vietnam's so-called "dependence" to move closer to India, in fact, political factors are greater than economic factors.

    For a long time, Vietnam's dependence on China is well known.

    From the war of resistance against France and the war against the United States, production, machinery and equipment, military equipment and daily necessities are provided by China, including the blood of the Chinese.

    Why did they not rely on China to reduce their dependence on China at that time?

    If we do not depend on China and Vietnam, is there any other country?

    But then again, the Vietnamese entrepreneur Ruan Youtang wanted to start a "pure Vietnam" shopping mall to encourage Vietnam to produce, sell and consume Vietnamese products.

    Ruan Youtang said that under the pressure of imported goods, Vietnam's commodity manufacturing and marketing industry is facing "extinction".

    He invested 27 million dollars in "national goods" shopping malls, just to save "made in Vietnam".

    Ruan Youtang's move seems to be one of the Vietnamese people's response to Vietnam's "Vietnamese goods" initiative, but it is just a commercial speculation under the guise of "pure Vietnam".

    At the official level, this slogan has been launched for many years, and related activities have been held recently in various provinces, with limited effectiveness.

    Over the past ten years, China has been Vietnam's largest trading partner, and "made in China" has a market in Vietnam.

    The main reason why Chinese products sell well in Vietnam is the price advantage.

    According to the Vietnam Youth Daily, Ruan Youtang's V+ store provides 50 years rent free preferential terms for merchants who meet the conditions of entry, and only 1% of their profits are used for hydropower and cleaning costs to reduce business costs.

    According to Ruan Youtang, the price of goods in V+ stores is 30% to 50% lower than that in other stores. It may become one of the cheapest places in Southeast Asia (commodity prices).

    Ruan Youtang regards subsidized businesses as a way to lower commodity prices as an effective way to encourage consumers to buy their own products and avoid the manufacture and sale of domestic goods.

    It is impossible to compare with the competition in the international market. It is impossible to rely on subsidized competition for a long time. The key is quality, price, technology content, and scientific management of enterprises.

    Moreover, Vietnam's desire to get rid of China's influence and dependence on China is unlikely to come true in the short term, and the advantages of Chinese products in the Vietnamese market will exist for a long time.

    Vietnam, for example.

    Textile raw materials

    More than 50% came from China, and Vietnam imported 5 billion 560 million textile materials from China in 2013.

    Many Vietnamese textile enterprises say that the importation of textile raw materials from China is because Chinese products meet the needs of enterprises, and the order is fast.

    For example, in the first 7 months of 2014, Vietnam imported about 1656 pigs and imported more than US $1 million 450 thousand, which were 1.7 times and 1.9 times the same period in 2013, and more than 940 thousand imported poultry and more than 3 million 670 thousand US dollars.

    In addition, in the first half of this year, Vietnam imported about 5 million 900 thousand tons of feed raw materials and imports of US $2 billion 420 million, an increase of 55% and 29%. respectively, of which imports from China accounted for 38% of the total imports, up from 35%. in the same period of 2013.

    In 2014, Vietnam imported about 71 thousand vehicles, with an import volume of US $1 billion 580 million.

    Among them, 13805 imported from China and 540 million US dollars were imported, accounting for 34% and 20% respectively.

    Vietnam imports more than 1 billion US dollars from China into 8 categories: machinery and equipment, imports of nearly US $8 billion, mobile phones and parts, 6 billion 300 million dollars, cloth, 4 billion 660 million US dollars, computers, electronics and spare parts, 4 billion 570 million US dollars, steel, 3 billion 860 million US dollars, oil, 1 billion 570 million US dollars, textile and leather raw materials, 1 billion 540 million US dollars, steel products, 1 billion 30 million dollars.

    According to data from the Vietnamese customs administration, Vietnam imported $12 billion 400 million from China in the first 4 months of 2014, exports to China $4 billion 880 million, and the trade deficit was $7 billion 420 million.

    This shows that many Vietnamese industries rely on imported raw materials from China.

    If Vietnam wants to get rid of China's influence and dependence, it is just the hope of some people. China and Vietnam are linked by mountains and rivers. If we go far, we can imagine that its logistics costs, as well as its technological level, technological content and product quality, can not make "Vietnam make" instead of "made in China".

     

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