Vietnam'S Cost Advantage Or Loss Of Shoe Companies Need To Be Cautious About Nuggets
Vietnam rising tide
Compared with the beginning of the year, the price of rice rose from 9000 shield / kg to the current 13000 shield / kg, and the pork increased from 60 thousand shield / kg to 77 thousand shield / kg. Compared with the same period last year, consumer goods prices generally rose by 5% to 33%, and prices rose more than 25% in May this year, exceeding the level of GDP growth.
The monsoon does not come in season, which makes the monsoon country Vietnam very uncomfortable.
The strike, which erupted at the end of the year, was brought to the front by now, all because of the economic recession caused by inflation and stock market crash.
By the end of 2007, we had already raised wages before the new wage standard came out, but we have to rise 10% to 8 months in 20%.6. Jiang Yaoting, general manager of Vietnam Jingyang Co., said, and now, not only are foreign workers going on strike, but also domestic workers are on strike. Because prices are rising too much.
In recent years, Vietnam has become a darling of international capital, and the Vietnamese government has also implemented the ultra conventional development route. It looks forward to integrating into the global community as soon as possible: formulating many preferential policies to attract foreign investment, further opening up the financial market and accelerating capital liberalization.
From 2000 to 2007, the average annual growth rate of Vietnam's economy reached 7.5%, second only to China, ranking second in the world. But with the overheating of the economy, the huge foreign trade deficit, the continued depreciation of the shield this year, the global inflation caused by the oil price rise, and the worsening stock market crash and so on.
Foreign investment companies have complained about Vietnam's investment environment, and now they are adding more economic pressure.
Jiang Yaoting said with great reluctantly, "do less and lose less. Now, orders are not always a good thing. Now, not more than money, but endurance. We must be patient and let it go. "
Soaring prices and rising wages
Foreign enterprises have changed the fate of HUYNHMINHLUC, otherwise, he may help people to fish in the sea.
He came to the economically developed Hu Zhiming city from Qinghua Province, central Vietnam. Although the distance between them is only 500 kilometers, it is only two days before they arrive. At present, Vietnam does not have a highway that meets international standards, and the speed of railway pportation is not enough. And the construction of infrastructure such as electricity, telecommunications, ports and so on, are far behind the fast running economic train in Vietnam.
In the streets of Hu Zhiming, such banners are written in Vietnamese characters: "please obey traffic rules and promote economic development". It is true that the Vietnamese government has recognized the seriousness of this problem.
In March 12th, the city of Hu Zhiming announced the pportation and pportation development plan in 2020: by 2020, Hu Zhiming would invest 410 trillion shield (about $25 billion 900 million - - according to the exchange rate in March this year, the same), the construction of 6 high flow highways, 4 viaducts, 22 bridge beams and other infrastructure.
HUYNHMINHLUC's sister-in-law is the manager of Huafeng Shoes Co., Ltd. (hereinafter referred to as "Huafeng"), so he came here to work after he retired from the army. This is a Taiwanese funded enterprise. There are also factories in Zengcheng, Guangzhou, China.
Now, he gets 1 million 200 thousand yuan a month (about 85 dollars). In the old home, because factories are few, it is hard to find such a job, and even if there is work, more efforts must be made to get such a salary.
Even in Hu Zhiming, a city with a higher level of consumption, his income is much higher than that of domestic enterprises. In Vietnam, the wages of domestic employees are only 1/3 of foreign capital. But from the afternoon of March 12th, HUYNHMINHLUC responded to the call of the workers, and the four thousand or five thousand men went on strike, demanding that the company raise wages.
Their reason is that prices are rising faster than wage increases.
Like other countries, Vietnam's prices are soaring as crude oil prices rise. Among the higher prices of goods, grain and food are the largest, followed by residential and building materials. This has reduced the standard of living of most people and increased the cost of production.
In June 8th, Jiang revealed that some smaller suppliers began to fail, because the price of spare parts continued to rise, rising by 40% compared with March, and other prices were also the same, for example, the price of rice increased by 1 times.
If the supplier is supplied to ordinary people and retailers, there is no problem; but if it is supplied to the factory, it will be very troublesome, because the supply to the factory will adopt the way of "monthly knot", but the supplier's purchase price is high, plus credit, his money will be difficult. So if factories can't "knot", they will not supply. Iron, carton and rubber wood are hard to purchase now. Jiang Yaoting said.
The closed northern provinces are relatively calm, but the production and sales of motorcycles, automobiles and other bulk commodities have been significantly affected. House prices will also be greatly affected.
In the stock market, many people have been locked up, some of them are selling houses or lending stocks, and now the Vietnamese economy is very depressed. Chen Yaokui, President of the Taiwan chamber of Commerce in northern Vietnam said.
This has also forced the Vietnamese government to adjust the minimum monthly wage standards for Vietnamese workers almost every year.
The new standard implemented in January 1, 2008 is Hanoi and Hu Zhiming. The minimum monthly salary for Vietnamese workers in foreign enterprises is 1 million shield (about 62 US dollars), and the rest area is 50 dollars or 60 dollars.
Li Tianqi, President of the Federation of Taiwan chamber of Commerce in Vietnam, admitted that the wages of Vietnamese workers were very low and should be increased, but the rate of increase was too fast. Since 2002, it has increased by about 15% per year, while in 2006 it has risen by 40%. over 2005. This also makes strikes as popular as plagues, because resistance is effective.
A pestilence strike
Frequent strikes and low productivity problems are plaguing foreign-funded enterprises. They believe that these are enough to offset Vietnam's low land price and low labor cost.
As early as January 1st, according to the new standard set by the government, "Huafeng" raised the basic wage of workers to 850 thousand "shield" (about 425 yuan), which used to be 560 thousand shield.
However, the workers reflected that 1.5 hours of overtime worked 1 times before, and now that the basic wage rises, overtime pay is the same as usual. Therefore, the actual income of workers is different from that before adjusting wages.
HUYNHMINHLUC lives in a rented house near the factory. A wooden loft is about ten square meters, and not a piece of furniture. He sleeps on the floor. He lived next door to two women workers, his colleagues, and their furnishings, like him, were also sleeping on the floor.
In fact, although Huafeng did not provide dormitories for male workers, it provided free dormitories for all female workers, paying only 20 thousand yuan per month for water and electricity, about 10 yuan per month.
In the past, women workers lived in dormitories, but they felt more and more free from their friends and relatives. They could not live in dormitories with them. Gradually, more people moved out. The room in which HUYNHMINHLUC lives (two people share the rent), the rent is 410 thousand yuan, which is the new price after the government adjusted the minimum monthly salary standard for foreign employees in January 1st this year. Before, the rent was 310 thousand yuan.
Huafeng provides a free lunch for workers, and provides free meals if they work overtime. Therefore, HUYNHMINHLUC costs 5000 yuan per day for breakfast, 8000 yuan for dinner, 390 thousand yuan for a month, 8000 yuan for fruit and coffee per month, about 200 thousand yuan, and about 400 thousand yuan extra. If he meets a friend on his birthday or gets married, he will not be able to save so much money.
So the workers asked the factory to really raise salaries.
No compromise! "If you compromise this time, you may strike another day," said Xu Guangzhong, the top manager of the long term Vietnam. In particular, unreasonable demands can also be resolved because of strikes, which will have a great impact on the future.
His deputy Dan Wenxiong said that their insistence is also responsible for the nearby factories, because "we compromise, other factories will follow suit".
In southern Vietnam, several factories often strike together, or several industrial zones strike at the same time, or even strike in several provinces. Frequent strikes and low productivity problems are plaguing foreign-funded enterprises. They believe that these are enough to offset Vietnam's low land price and low labor cost.
In recent years, the plant has gone through 3 strikes.
Li Tianqi has arrived in Vietnam since 1989. He said the strike began in 2005, and strikes were like plagues, which broke out every year.
Because Vietnam's wages are the lowest in Southeast Asia. In addition, the industrial zone is growing faster, more and more enterprises are investing, one is bigger than one, and the workers are limited. Moreover, in order to balance regional differences and increase investment in the central and northern part of the country, many northern workers are no longer coming back. Li Tianqi said.
In the past, Huafeng employees accounted for 1/3 in the north, central and southern parts of the country, but this year, workers in the North almost never came back. According to the actual capacity, Vietnam Jingyang limited needs 1800 workers, but now there are only 1200.
Workers are tight, and strikes will increase. In March, 12
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