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    China'S Demographic Dividend Vanishes Southeast Asia, Attracting Large Numbers Of OEM Orders

    2013/7/22 18:48:00 53

    IndonesianFootwearGarment Manufacturing

    < p > nowadays, when buying world famous brand clothing and sports shoes, many people will find that the "made in China" which is often seen on these commodities has changed unconsciously, instead of "made in Indonesia" and "made in Vietnam".

    The results of a multi lateral survey by the Asian a href= "http://www.91se91.com/news/index_c.asp" > footwear industry < /a > show that since the outbreak of the financial crisis in 2008, with the rising manufacturing costs in China, the footwear industry in Southeast Asia has already taken 30% of China's orders.

    < /p >


    "P" China once used cheap and abundant labor force to attract a large number of foreign brands to China to find OEM.

    However, in the past two years, as the Chinese government put forward the pformation of industrial upgrading and development, China has gradually sought to change labor-intensive industries.

    On the other hand, with China's continuous development, China's labor cost advantage has gradually weakened or even disappeared.

    < /p >


    Compared with P, Southeast Asian countries have obvious advantages in these areas in recent years, especially ASEAN developing countries such as Indonesia, < a href= "http://www.91se91.com/news/index_p.asp" > Vietnam "/a" and "Kampuchea" are in the period of rapid development of industrial economy.

    Vietnam, for example, is the main production base of Nike sports shoes, and almost half of the shoes exported from Vietnam are Nike shoes.

    Since 2010, Vietnam has produced more Nike sports shoes than China, ranking first in the world.

    < /p >


    < p > compared with Chinese enterprises, the advantages of these Southeast Asian enterprises are first manifested in cost.

    For example, the shoemaking industry, from 2003 to 2013, the wage of Chinese shoemaker increased 3.5 times in these ten years, especially after the a href= "http://www.91se91.com/news/index_cj.asp" > financial crisis < /a >, the labor cost rose rapidly, while the central parity of RMB against the US dollar has appreciated more than 30%, and other costs have risen, and profits have been basically eaten up.

    < /p >


    < p > at present, the monthly salary of workers in the eastern coastal areas is about 500 dollars, while Indonesia is about 300 dollars, while Vietnam has only about 250 dollars.

    Second, the industrial chain in Southeast Asia is becoming more and more perfect.

    For example, Nike, which originally came to Vietnam to produce, had to import a pair of Nike shoes 98% of raw materials, but now it has dropped to 56%.

    < /p >


    < p > in addition, since the completion of the China ASEAN Free Trade Area, it has been exempt from taxation in recent years, and the cost of raw materials imported from China has been significantly reduced.

    Third, Southeast Asian countries have also made great efforts to attract foreign investment.

    For example, in order to improve the investment environment, Indonesia has made some changes to foreign investment laws and labor laws which are conducive to foreign investors, and gradually eased restrictions on foreign investment, simplifying the examination and approval procedures of foreign capital and shortening the time of examination and approval.

    < /p >


    At present, Southeast Asian countries will not take the place of China's "world factory" in terms of P.

    First of all, although some enterprises pfer the OEM orders to Southeast Asian countries, the scale will not be large, because most of the Southeast Asian countries are small and medium-sized countries with limited capacity to accommodate industrial pfer.

    < /p >


    < p > for example, in the mid 80s of last century, a large number of Japanese enterprises were pferred to Thailand, but they were saturated in one or two years. Thailand's infrastructure could not bear, and then there was a shortage of water, electricity and so on.

    Later these enterprises were pferred to Malaysia and Indonesia, and Southeast Asian countries are still facing such problems.

    Secondly, although the industrial chain of Southeast Asian countries has been improved, there is still a big gap compared with China.

    < /p >


    < p > for example, a complete textile industry chain needs to include cotton planting, spinning, weaving, printing and dyeing, clothing manufacturing, sales and other links.

    The shoemaking industry will also include rubber cultivation and rubber processing. Many Southeast Asian countries do not have real industry. Only garments and shoes are manufactured, lacking all the relevant links before.

    In addition, the basic implementation of Southeast Asian countries is still lagging behind, which also restricts the development of their manufacturing industry.

    < /p >

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