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    Vietnam Is Becoming An Important Destination For Domestic Textile Enterprises To Invest Abroad.

    2016/3/10 17:06:00 57

    VietnamTextile EnterprisesForeign Investment

    At present, Vietnam has gathered textile enterprises from many countries such as China, Korea, Japan and France.

    Although the number of foreign businesses is relatively small, it occupies Vietnam every year.

    Textile and clothing

    60%, the contribution of Chinese enterprises is greater.

    In the first quarter of 2015, there were more than 1000 foreign direct investment projects in the 31 industrial parks in the province, attracting foreign investment of about 17 billion 700 million US dollars, and many leading enterprises in the domestic textile industry such as Tianhong, Bailong and Shenzhou built their factories here.

    In the Southeast Asian region where domestic textile industry is keen to invest, Vietnam is becoming an important destination for textile enterprises to invest abroad because of its own characteristics.

    Include:

    First, adequate labour resources.

    At present, Vietnam has a total population of about 90 million, of which about 50 million of the working age population is employed, and the market potential is huge. Moreover, Vietnamese women have more labor force than men.

    Although the wages of Vietnamese workers have risen rapidly in the past few years, the average wage of the local $200 is still low compared with the wage level of 500 to 600 US dollars in China.

    Second, long-term, continuous and preferential investment policies.

    Vietnamese government in corporate income tax and land

    rent

    And so on, made a great concession, such as the policy of "four exemption and nine halves" (formerly "three exemption and seven halves"), that is, if foreign enterprises meet the two conditions of satisfying the total number of employees to 5 thousand people and the investment scale breaking 300 million US dollars, they can be exempt from the enterprise income tax within 3 years from the first profit year and the half of the enterprise income tax after 9 years. The preferential conditions far exceed the treatment of "two exemption from three reduction" granted to foreign invested enterprises in China at present.

    Moreover, Chinese enterprises do not have to pay other taxes similar to urban construction tax and education tax in Vietnam, which greatly reduces the cost of tax burden.

    Third, special

    location advantage

    Vietnam joined the World Trade Organization (WTO) at the end of 2006. It is a member of China ASEAN Free Trade Area. Recently, it was committed to the negotiations between the free trade agreement (FTA) and the p Pacific Strategic Economic Partnership Agreement (TPP).

    In early October 2015, the 12 countries, including the United States, Japan and Vietnam, reached a basic agreement on TPP and agreed to carry out free trade. This means that Vietnam will impose zero tariffs on textile and clothing exports to the United States in the future, and will stimulate the domestic textile production capacity and gross profit margin in Vietnam. So many domestic textile enterprises have come to Vietnam in advance to prepare for the future share of the dividend policy.

    Fourth, other factors.

    For example, the water fee in China is 3.5 yuan per ton, while in Vietnam it is 2.4 yuan, and the cost is reduced by 31%.

    The electricity tariff in China is 0.65 yuan per time, while in Vietnam it is 0.39 yuan, and the cost is reduced by 40%.

    Vietnam's land use cost is only about 20% of the domestic level, and enterprises can import better quality cotton and Australian cotton at the price of 3000 yuan to 4000 yuan per ton.

    In addition, compared with other Southeast Asian countries such as Bangladesh, Kampuchea and Indonesia, Vietnam's domestic political environment is relatively stable. The government's attitude towards opening up and attracting foreign investment is more firm, and infrastructure and legal system construction are improving. The strength of local textile industry is relatively weak and labor quality is relatively high, which is also an important reason for attracting Chinese textile enterprises to invest and build factories.


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