The Risk Of Shoe Companies Moving To Southeast Asia Is Greater Than That Of The Mainland.

< p > in the course of the recent shift of China's manufacturing industry in recent years, many clothing and shoemaking enterprises have shifted their factories to Southeast Asian countries such as Kampuchea, Bangladesh and Vietnam, which are all low cost. However, when the cost is partially reduced, these enterprises also have to face the strike events that may happen at any time in these countries.

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< p > according to Xinhua news agency, in December 24, 2013, Kampuchea opposition party chairman Sanglanxi called on Kampuchea workers to strike for a raise in basic wages. Kampuchea's clothing and shoe factories shut down completely, resulting in bloody clashes between police and strike demonstrators in the industrial area near Phnom Penh in January 3, 2014.

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< p > Kampuchea Labor Department spokesman Hensol (Heng Sour) said 6 days ago that the situation has returned to normal, and that 909 camping and shoemaking factories have returned to work on the same day, and 80% of the workers have returned to work.

Wen Shuyang, President of Kampuchea garment factory Association (Van Sou Ieng), said that the illegal strike of workers in the whole Cambodia garment factory for more than 10 consecutive days has caused about 275 million dollars loss to the whole industry.

According to estimates, factory sales revenue during the strike period is expected to decrease by 200 million US dollars, while the direct economic losses to factories caused by lawbreakers attacking factories and destroying equipment during the strike period are about $75 million.

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< p > "after consultation, many shoe factories and garment factories have promised to increase the monthly salary of workers from 80 dollars to 100 dollars since February 1st.

In the past two days, workers on strike in Kampuchea have returned to work in factories, but this is still a lingering fear for Dongguan's shoe companies investing in Kampuchea.

Frequent strikes in Southeast Asian countries have increased the risk of Chinese shoe companies going out. "

Yesterday, the Asian footwear industry association secretary general Li Peng accepted the first Financial Daily reporters.

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< p > according to media reports, Quanzhou Fengyi group's factory in Kampuchea chose to suspend production for several days due to a strike.

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< p > Agence France-Presse pointed out that last year, Kampuchea textile workers launched hundreds of strikes, making 2013 a record breaking year in the country.

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On the face of it, the cost of manufacturing and operation in Kampuchea is much lower than that in the mainland of China, but in fact, the profits of the shoe making enterprises in Kampuchea are almost the same as those in Dongguan. On the one hand, the production efficiency of Kampuchea is relatively low, and there is no local raw material production enterprise, and the materials needed by the industry need to be pported by sea and land in the past. There are many unforeseen expenses, and the other side is that the purchasers will clearly calculate the cost of each link, and the preferential tariff policies of countries such as Europe and Canada can not be enjoyed. < p > a Dongguan Taiwanese shoe factory official said, Kampuchea local land price is cheap, labor cost is much lower than Dongguan, Dongguan shoemaker workers earn about $500 per month, and often hire workers.

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In the past few years, the EU has imposed anti-dumping duties on Chinese mainland and Vietnam's "a href=" http://www.91se91.com/news/index_c.asp "footwear > /a", which has prompted the EU footwear importers to turn more orders to Kampuchea. Some mainland Taiwan funded factories have also followed the customer's order production line to the past.

In recent years, due to rising manufacturing costs and appreciation of the renminbi and other reasons, shoe manufacturers in Dongguan and other places have gradually moved to Kampuchea and other Southeast Asian countries.

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< p > at present, there are more than 40 Chinese shoe factories invested in Kampuchea, many of which are pferred from mainland China to Taiwan funded shoe factories.

And Nike, Adidas, H&M, ZARA, UNIQLO and other international cards completed the layout in Southeast Asia a few years ago. Now the domestic clothing and textile listed companies have begun to pfer orders.

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< p > close to the world's largest shoemaker, Baocheng industrial Limited by Share Ltd (9904.TW, hereinafter referred to as "Baocheng"), told the reporter that Baocheng, a well-known sports brand OEM of Nike, < a href= "Adidas" > Adidas "/a", has shifted its production lines to the mainland and Southeast Asia after cutting off many production lines such as Dongguan and Zhongshan. In the first few months, Kampuchea has bought land to build factories, mainly for Adidas Solomon.

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< p > with the rising manufacturing costs in mainland China, Baocheng reduced 51 mainland production lines in 2012, and gradually pferred some of its capacity to Southeast Asian countries such as Indonesia and Vietnam.

Since 2013, although Baocheng's revenue has remained generally stable, the pfer and adjustment of production capacity, which is accompanied by the continuous increase in labor costs and the allocation of orders with brand customers, is a challenge to operational performance.

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< p > in addition, the consumption desire of China's sporting goods market is sluggish. Discount promotions are still unscheduled. The gross profit margins and consolidated net operating interest rates of Baoji in the first three quarters of 2013 were 21.9% and 4%, respectively, representing a decrease of 24.6% and 7% over the same period last year.

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< p > Li Peng said, "a href=" http://www.91se91.com/news/index_c.asp "> Pearl River Delta < /a > the shift of shoemaking industry is the general trend.

Personally, he believes that the risk of pferring shoes to Southeast Asia is greater than that of the mainland. Currently, labor costs in Southeast Asia are rising frequently in the strike, and Southeast enterprises may not have better opportunities.

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Last week, under the pressure of workers' strike, the Ministry of labour of Kampuchea announced that the monthly minimum wage of the garment industry increased by 25% to 100 dollars, but the workers in the industry were still not satisfied with the requirement that the minimum wage would rise to 160 dollars per month. P

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< p > industry insiders say that the pfer of Chinese brands to Southeast Asia is no longer significant because the time lag of rising labor costs has gradually shortened, and Southeast Asia may lose this advantage in a few years.

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Wu Zhenchang, chairman of Guangdong Chuangxin shoes industry, yesterday interviewed by the first Financial Daily reporter, said that the difference between the wages of workers in Southeast Asia and the Pearl River Delta is still relatively large. Some shoe companies are still ready to pfer to Southeast Asia. It is predicted that the labor force cost will rise faster in Southeast Asia in the future. "P"

The shoe industry that moved to the mainland may not have developed well. During this time, some shoe factories that moved to Jiangxi and Hunan have been closed down one after another.

Simply reducing labor costs through pfer is not a long-term solution after all. This year is still a very difficult year for the shoemaking industry. The way out is to improve the competitiveness of enterprises by improving their internal strength.

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