Industrial Relocation: Made In China And Made In Vietnam

Zhang Qiang (a pseudonym) is a small business owner of a foundry factory in Vietnam.

He started making hardware in China and became more prosperous after he arrived in Vietnam Hanoi in 2008.

At present, he is willing to receive any OEM list that can earn money.

"Domestic hardware manufacturing industry has been in recent years.

Because of the limitation of investigation, many factories can only rely on trading companies to help because they have no import and export rights, and all kinds of expenses sometimes even exceed the value of the goods themselves.

Therefore, many businessmen regard Vietnam as a pfer station for import and export.

Zhang Qiang introduced.

Import and export pfer station

"At present, factories in Vietnam are mainly textiles.

"Hardware, furniture, building materials, machinery spare parts" are the main industries, mainly small business owners.

Zhang Qiang told reporters that due to the constant compression of domestic manufacturing profits and the limited export of products, many labor-intensive industries are accelerating the pace of relocation.

"Small enterprises in Vietnam mainly do simple processing of raw materials, on the one hand, they can be sold directly in the local market, and on the other hand they can also be exported to Europe, the United States, or even to China."

In fact, Vietnam has become a pit zone for China's import and export.

China's hardware industry is typical.

It has also been repeatedly subjected to anti-dumping investigations and other trade measures.

Zhang Qiang said that in recent years, because of the constant trade friction, the hardware export business was becoming worse and worse. The domestic business in the first quarter of this year was nearly 60% lighter than that in the same period last year. The hardware manufacturing companies in Ningbo and Yiwu began to shift to Southeast Asia.

He explained that Vietnam has a large number of Chinese and overseas Chinese, and that small business owners who want to go to Vietnam must rely on the influence of local overseas Chinese.

"These overseas Chinese are both protector and referrals.

The application for import and export of goods can be obtained as long as they are introduced and money is paid.

Zhang said that in Vietnam, business must face risks such as policy changes.

"Vietnam's current economic environment is similar to that of China in the last 60 and 70s of last century. There are still many uncertainties. In order to avoid risks, many small enterprises set up factories in Vietnam and China at the same time, in Vietnam only do rough raw materials processing, and then import home to go deep processing."

It is understood that many small business owners are looking for customers to pick up orders in the country, and then Vietnam factory processing and manufacturing, and finally export to China's mode of making money.

"Vietnam is also a pit point for overseas products to enter China.

Goods from Europe and the United States are first shipped to the Hongkong Special Administrative Region of China, then to Vietnam, and finally shipped to Guangxi by the port of China, thus breaking the fetters of domestic import high tariffs.

"Nomadic" manufacturing industry

Statistics show that over the past 5 years, Vietnam's overseas capital investment has increased by an average of 22.16% per year.

Yu Yu, a management member of Jinyi group in Vietnam, told reporters that Vietnam is becoming an important destination for manufacturing enterprises to migrate.

Compared with China, Vietnam has the most competitive advantages in human cost, factory rent and policy concessions.

"The labor cost of Vietnam is about 2/3 of China.

At present, the monthly salary of domestic workers has reached 3000~4000 yuan, and Vietnam has less than 2000 yuan.

At the same time, the rent of factory buildings is only about 1/3 of the domestic level.

In fact, the most attractive part of Vietnam is its tax preferences. Foreign-funded enterprises are exempt from taxation in the first 3 years in Vietnam, and the tax rate is 5% to third to 5 years, and then the tax rate is about 10%, which is lower than the domestic level.

Shenzhen city BondA International Logistics Co., Ltd. is a professional Southeast Asian logistics and pportation company, the head of its shipping department, Huang told reporters that the number of factories moving from Vietnam to Kampuchea and other countries in recent years is increasing year by year.

"At present, there are two main types of relocation of domestic manufacturing industry: one is foreign-funded enterprises, for example, many Japanese enterprises began to withdraw their factories from China in the whole year, and the other is small businesses in China. They will send second-hand machinery and equipment to Vietnam by sea, and then set up factories in the locality. In general, the relocation of factories using small machinery will only be completed by only 2 centralized boxes. The pportation cost will be about ten thousand yuan, plus machine cost and factory cost, which will probably only cost 700 thousand ~80 yuan."

However, like China, Vietnam's manufacturing industry is also suffering from inflation and rent rise.

"In 2005, our factory could recruit people as long as 700 thousand (Vietnamese shield), and now the price has risen to 3 million.

In addition, due to the quality of labor and other reasons, a common skilled worker in China can often do 2 jobs here.

Mr. Yu said that because of this, some of the factories that are now entering Vietnam have begun to move to countries with relatively lower labor costs, such as Burma.

The manufacturing industry is now like a nomadic people living in water and grass.