"Made In China" Under Nanyang: Southeast Asia Has Become A Hot Spot For Chinese Enterprises To Invest.

"There are more and more friends visiting Pingyang."

After this year's "May 1", Xu Yang receives Chinese friends from Vietnam every day.

Pingyang is located in the southern part of Vietnam and in the north of Hu Zhiming city. It is surrounded by Hu Zhiming City, Nai and Bei River, and its area is close to 7000 square kilometers. In 2009, Pingyang became the third largest province attracting foreign investment in Vietnam.

Xu Yang's main business is office furniture manufacturing. With the escalation of Sino US trade frictions, its products are among the first to be added to the tariff list.

"Trade friction between China and the United States is only a factor. The rapid increase in domestic labor and other factors of production is also a problem of factory relocation.

At present, the average wage of an artificial person in China is between 4500 yuan and 5000 yuan, while in Vietnam only 2500 yuan.

As Zhang Lianqi, the Standing Committee of the National Committee of the Chinese Political Consultative Conference and vice president of the Chinese taxation society, said that the pfer of middle and low end labor intensive industries is the inevitable result of the global economic division of labor, just as China had undertaken the same type of industrial pfer from Europe, Japan, Japan, Korea and Hong Kong and Taiwan at the beginning.

Pingyang land market has a price per day.

In 2016, Xu Yang bought a piece of land about 20 thousand square meters in Pingyang under the instigation of friends. At that time, the land was only used as spare tire, but I did not expect that the spare tire would be turned right after 3 years.

Xu Yang bought the land at 57 US dollars / square meter, and now it has risen to 90 US dollars / square meter.

"As early as I knew that I bought more land at that time, some of the people we came together bought 400 thousand square meters at a time, and now they earn a lot of money by appreciating the land."

Xu Yang said, now every day to receive several calls from domestic investment friends.

Pingyang has opened several industrial zones, and land price is also one price per day.

A piece of remote land is still sold for 45 US dollars per square metre before May 1, and now 47 dollars / square meter is hard to find.

After the escalation of trade friction, Southeast Asia has become a hot investment place for Chinese enterprises.

At the end of 2018, the Southern China American Chamber of Commerce announced a survey of Chinese and US companies. Both Chinese and American companies surveyed felt the negative effects of tariff increases, and the US companies felt more negatively than Chinese companies.

Because the two countries may impose more duties on the other side, most of the respondents said they were considering turning production, assembly and supply to third countries, and Southeast Asia was the first choice.

Survey data also showed that 44% of the companies said that the clearance rate of goods was slower.

38% of the companies said the import and export examination was more cautious and the approval period of the license was longer.

Bain, a senior partner of the consulting firm, said that Sino US trade frictions are pushing many multinational companies to reconsider their manufacturing operations in China.

The company points out that those products that are processed into China and then exported to the United States, such as textile and electronic manufacturing industries, will be greatly affected.

In the long run, ASEAN is an alternative supply chain base.

However, Zhang Lianqi, vice chairman of the Chinese Taxation Association, recently said that China has a large high-quality workforce, a sound industrial system, and a secure and stable political environment. This is the development advantage of the Chinese industrial chain. "It is unrealistic to squeeze the Chinese industrial chain out with the pressure of trade friction".

He said that with the rising cost of labor, land, pportation and other production factors, the pfer of some low-end labor intensive industries to the outside world is a necessity of the global division of labor, just as China had undertaken the same type of industrial pfer from Europe, America, Japan, Korea and Hong Kong and Taiwan.

"The upgrading and strengthening of medium and high-end industrial chains will not change because of trade friction."

The role of "made in China" is hard to replace.

In fact, whether the industry is high end or low end, Chinese entrepreneurs who first or intend to go to Southeast Asia are also doubtful.

Wang Chunliang is the owner of a plastic toy business.

He told the twenty-first Century business news reporter that he had some hesitation about trying to try in Southeast Asia.

"Compared with the mature manufacturing and manufacturing industry in China, Vietnam is just beginning, and is relatively backward, so we must go to dozens of kilometers to find a screw, and these problems will certainly be solved within three kilometers of Dongguan.

In addition, Vietnam's culture is quite different from that of China. Domestic workers are very willing to earn money. They hope to work overtime, especially on holiday overtime, which is three times higher and more active.

More importantly, the local situation is not stable, so it is more hesitant. "

Wang Chunliang disclosed that China made quite a reputation among foreign customers, after which American customers expressed willingness to share the added duties, but they refused to do so again. "The profit is too low. Generally speaking, the profit of processing and manufacturing is less than 10%. Some even have only 5%. Even if customers are willing to bear half of the taxes and fees, it will still be unprofitable for us.

Now we need to practise our internal strength and grasp the bargaining power rather than just being depressed.

At the 124th Canton Fair, some buyers thought that manufacturing industry in Southeast Asia could hardly replace China. Bram, purchasing representative of Esschert Design, said that the Chinese made industrial system and technology standardization made its "made in China" role unable to be replaced.

"For a mature industrial system, its ability to resist external pressure, challenges and risks, as well as its ability to regulate itself is far greater than that of the market."

Bram is still optimistic about manufacturing in China. He said: "according to the analysis of some partners' market data, China's manufacturing has gradually changed to China's intelligence. At present, a large number of industries have entered the high-end production chain from the low-end foundry in the past."

Bram pointed out that at present, Southeast Asian countries are only in the category superiority rather than the industry superiority, the production superiority displays the regional dispersion, and this superiority mostly depends on the resources, the demographic dividend, the industry support and so on.

Obviously, whether Vietnam's clothing manufacturing or India's electronic commodity production is now very dependent on low cost human labor, at the same time, it has not yet formed a complete industrial system and industrial effect.

India buyer RAJ Budhiraja also believes that trade friction does increase the volume of orders in India, but is still limited to small and scattered orders.

At present, the level of manufacturing in India is unable to undertake large international orders, and the overall level in Southeast Asia is also the case.

Xu Yang and Wang Chunliang are also more convinced of the above buyers' attitude, but they still need to be vigilant. Although there is still a huge gap between the manufacturing industry in Southeast Asia and China at this stage, the gap is not irreparable.

"With the gradual entry of some manufacturing enterprises into Southeast Asia, the design and quality of manufacturing industry in Southeast Asia has improved rapidly. Taking our Pingyang industrial area as an example, about 7 of the manufacturers now come from the mainland of China. Their arrival not only brings orders, employment, but also brings crafts and quality."

Xu Yang said.

But it is undeniable that since China's reform and opening up, China's manufacturing has also accumulated 40 years of experience, supply chain technology, equipment matching, skilled workers training and so on a series of production factors have accumulated a lot of money and experience, China has accumulated a lot in these areas, although Southeast Asia is catching up, this advantage will not catch up overnight.

"A simple example shows that our high-end furniture will not be able to get Vietnam's production for the time being, because there is a baking process, which requires higher temperature and time. If the control is not good, the color matching will be uneven or easy to fall off. At present, this technology has been used in China, and the rate of good quality is over 99%, but in Vietnam, the technology is at least ten percentage points lower."