Vietnam Has Lower Investment Cost And Easier Access To International Market.

The decline of export market, the rising cost of raw materials in the upper reaches of the mainland, and the rising prices of production factors such as labor force are becoming obstacles in the development of China's textile enterprises.

Affected by the weak international economic environment such as the European debt and the US debt crisis, the export performance of domestic textile enterprises in Europe and the United States has declined sharply and orders have been reduced.

From spinning manufacturing to garment manufacturing, especially with the signing of the TPP agreement between Vietnam and the United States, the overseas experience of domestic textile enterprises to break through the bottleneck of cost is more valuable.

On the Shanghai stock exchange, A, a color spinning enterprise listed in the color stock market, is a company that has earlier achieved the layout of Vietnam's production capacity. It represents a successful attempt to seek internationalization in the context of the rising labor costs and the impact of the foreign trade industry in China.

At present, textile enterprises have difficulty in purchasing foreign trade and inventory pressure. At the same time, domestic textile industry will fall into a new reshuffle pattern due to many factors, such as rising labor costs, appreciation of RMB, fluctuation of raw material prices and loan interest rates. The export situation is not optimistic.

On the other hand, at home and abroad

The cost of cotton has been at an international competitive disadvantage. Cotton spinning enterprises, including textile and garment enterprises, are facing tremendous competition pressure.

The cost of using cotton is higher than the international market is a problem that has plagued the development of China's textile industry for a long time, especially in the past half a year, which has been more prominent in the rapid growth of other costs, which has greatly led to the decline in the international competitiveness of China's textile industry.

Because of this, domestic textile companies such as Baron East and Tianhong textile have to resolve their difficulties through the layout of overseas capacity.

In Asia, Vietnam, Kampuchea, Bangladesh and Indonesia have become international.

The foundry base is Vietnam, and Vietnam is standing out with the most prominent regional environmental advantages.

In these countries, Vietnam's regional environment is obviously superior to those of other countries.

Vietnam has sufficient electricity, abundant water resources, political stability and relatively high personnel quality. The efficiency of garment workers is probably 70%-80% in China, far higher than that in other countries.

At the same time, the cost advantage of investment in Vietnam is very obvious.

Small and medium-sized enterprises in Vietnam are small in scale, and the investment in a medium-sized enterprise is only 1 million -150 million. The largest capital of small enterprises is about 1OO million, and its land price is the cheapest in Southeast Asian countries.

In the past, the price of a Vietnamese textile mill was around 1 million Vietnamese shield (about 60 thousand dollars).

After the outbreak of the financial crisis, the price of the factory dropped by 40%. In the context of the appreciation of the renminbi, this is conducive to Chinese enterprises going to Vietnam to acquire factories.

Therefore, the cost of setting up factories in Vietnam is relatively low, and for the general small and medium enterprises, the burden of initial investment is not large.

The continuous rise of domestic labor costs not only forced many international garment brands to migrate to other Southeast Asian countries, but also the domestic spinning enterprises.

Compared with nearly 3000 yuan of textile workers' wages, Vietnam has abundant labor force and low price, which is half of the Yangtze River Delta and the Pearl River Delta region.

Garment workers

For example, the labor cost of garment workers in Vietnam is only about 1000 yuan.

The value-added tax of enterprises is only 10%, and water and electricity charges are only half of that in the country, which can further reduce production costs.

In addition, after the signing of the p Pacific Partnership Agreement (TPP) between Vietnam and the United States, the main manufacturing processes of spinning, weaving and printing were carried out in member countries, enjoying export tariff relief.

Duty-free treatment will further enlarge the global competitiveness of Vietnam's textile manufacturing industry under the background of low processing cost advantage, and the volume of orders is expected to further improve for textile enterprises in Vietnam.