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    Vietnam Is Shutting Down And Kampuchea Is Shutting Down. The Global Supply Chain Is Looking Forward To The Resumption Of Chinese Factories.

    2020/3/9 16:56:00 91

    Global Supply ChainVietnam Shut DownKampuchea Shut DownMade In China

    The new epidemic of coronary pneumonia continues to spread worldwide. As of 8 hours in Beijing at 0 o'clock, there were more than 20 thousand confirmed cases outside China, and 100 thousand cases were diagnosed globally. It is understood that 4 countries in South Korea, Italy, Iran and Japan have more than 20 thousand confirmed cases. The state of New York declared a state of emergency. Following the diamond princess cruise ship, 21 people on the US cruise ship "supreme Princess" were positive for nucleic acid tests. Affected by the epidemic, global market activity and economy are in a state of rapid decline and decline.

    Vietnam's 1.6 000 factories are suspended, and Vietnam's production benefits are no longer dominant.

    According to Vietnam's Vietnam News Agency, the latest statistics of Vietnam's Statistics Bureau show that in the first 2 months of 2020, Vietnam's newly established enterprises grew by 1.74, an increase of 9.1% over the same period last year, and 1.19 enterprises resumed enterprises, an increase of 17.1% over the same period last year.



    In February, there were 9163 newly established enterprises in Vietnam, with a registered capital of 96 trillion and 800 billion over the shield, involving 73 thousand workers, with an increase of 10.7%, 21.4% and 13.5% respectively.

    Vietnam's national resumption and remanufacturing enterprises 3630, a decrease of 57.1%, an increase of 107.8% over the same period; 4567 enterprises suspended business, down 61%, down 61.8% from the same period last year.

    At the same time, according to Taiwanese media reports, Vietnam's global supply chain capacity transfer has attracted more attention. Foreign investment has also focused on textile, apparel and footwear supply chain. European foreign investors said that Vietnam's OEM clothing manufacturers could be able to move out of China due to labor shortages and wage rises. The price of textiles is double.

    European Department of foreign investment said that considering the slow growth of shipping, exchange rate and raw material costs will reduce the average unit price, and Vietnam's labor wages rise, this year will reduce the Taiwan clothing OEM factory profit forecast 13~15%. ?

    In view of the global sports brand demand more than 8.5%, compared with 3% of the industry, it appears more resilient. OEM, such as Shenzhou International and Baihe, will have better performance than the sports brand factories.

    33 garment factories in Kampuchea stopped working and 20000 workers were affected.

    As of March 3rd, a total of 33 factories in Kampuchea had applied to the Ministry of labour for stoppage due to shortage of raw materials, resulting in nearly 20 thousand workers being affected. If China's epidemic is not resolved, 200 factories may apply for a stoppage.



    A spokesman for the Ministry of labour and vocational training, Hsing Suo, said that there were 62 thousand workers in the 33 factories. 17096 workers were asked to suspend work for two weeks when they stopped working.

    He said that these companies or factories only applied for temporary suspension of part of the production line. For example, a factory has 6 production lines, but they only apply for 1 suspension.

    "The factory expects raw materials to arrive at the end of March." He stressed that the Ministry of labour had thought that all production lines would be suspended, but later, after a factory assessment, it was found that it would only stop 1/4 and stop for only half a month.

    The spokesman stressed that the government is making efforts to coordinate with the Chinese authorities in order to make the raw materials reach Kampuchea as soon as possible. He said that as of March 2nd, the number of factories that had stopped production was not worrying, and the time of production was also not the same as the previous 2 months.

    The chairman of the Khmer trade union association, Zun Meng Tong, said that a factory in real estate province had applied for partial production line downtime because of the delayed arrival of raw materials, resulting in an impact of about 1000 to 1500 workers in the factory (equivalent to 50%).

    He said that about 80% of the factories in China are now resuming work, and by the end of this month about 80% to 90% of raw materials can be shipped to Kampuchea. C.CAWDU, the chairman of the Kampuchea democratic clothing workers union (C.CAWDU), said that at least 7 to 8 companies have applied for temporary discontinuation.

    If the new crown pneumonia epidemic in China is not resolved, there may be 200 factories applying for a stoppage.

    Unable to start smoothly, Southeast Asian factories can not be separated from China made.

    China's advantage lies in the fact that we are the only country in the world that owns the whole industrial chain. It has 39 industrial categories, 191 middle classes and 525 sub categories. It is the only country in the world that possesses all the industrial categories of the United Nations Industrial Classification, thus forming a complete industrial system.



    Apart from quality and competitiveness, we can independently produce all industrial products from garments, shoes and socks to aerospace, from raw materials to industrial aircraft, and can meet the needs of people's livelihood, military, infrastructure and scientific research.

    Like this epidemic, such a large-scale economic loss, the world only China can resist, other countries simply can not resist, can only be resigned to fate. That is to say, as long as China does not fall, the people of the whole world will be saved.

    In addition to China, many factories that migrate to Vietnam, Kampuchea and other places are unable to start work smoothly. It is understood that a textile factory last year due to the Sino US trade war hot, in order to diversify the risk, the capacity to move from China to Vietnam, the factory has just completed, foreign orders have also been issued, the mainland's management cadres have also successfully completed the visa, only wait until the start of the new spring can start, but now China's mainland management cadres can not come, so that the production line can not operate smoothly. The family can understand us, and we do not want to encounter such a situation. The boss reluctantly replied.

    In addition, the epidemic also brings the impact of logistics. Although the industrial chain of Vietnam is gradually improving, many raw materials are imported from China, and the links between them are very close. "Most of our factories have only 1 months or so of surface accessories. If the epidemic continues to be severe, the output of China's surface accessories is interrupted, and we may have to face a shutdown." A garment manufacturer said.

    Apart from Vietnam, Kampuchea is also facing the shortage of raw materials and fabrics. In view of this, if China's epidemic continues to spread, even if customers transfer orders to Vietnam, Kampuchea and other places, orders will be full, and they will not be able to complete them smoothly.

    The epidemic has not only caused a great impact on China, Southeast Asian countries, and even the whole world, but also proved that China is indispensable in the textile industry chain.

    China is known as the world's factory and has a pivotal position in the global supply chain. The world is looking forward to the resumption of Chinese factories.

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