Shoe Industry Pfer Best: Southeast Asia Or Western China?
In 2008, China's footwear industry continued to suffer from the impact of EU anti-dumping, RMB appreciation and export tax rebate reduction, including the rising labor costs, restrictions on labor contract law, electricity consumption and rising land use costs. The pfer of footwear industry in East and West has been broken. Is it pferred to Southeast Asian countries or China's Chengdu, Chongqing and other western regions? Which regional pfer will have a better advantage?
Advantages of industrial pfer in Southeast Asian countries
From the fourth East Asia Investment Forum, Vietnam, Kampuchea, Burma and other Southeast Asian countries said they welcomed the investment of Chinese entrepreneurs and hoped to undertake industrial pfer in southeastern coastal areas of China. Countries will provide various preferential policies for this purpose. Compared with the eastern part of China, besides the advantages of larger ecological space, more preferential policies, and lower price of raw materials, labor costs will be even lower than that of China's inland areas, which will help them undertake industrial pfer in China.
In Southeast Asia, Cambodia and Burma, the governments of Southeast Asian countries take the initiative to take measures to undertake industrial pfer, and entrepreneurs begin to do research and Research on the above areas in order to make decisions or take investment actions. Recently, a delegation from Hongkong TDC, together with the Hongkong garment industry association and Hongkong Footwear Association, went to Vietnam and Kampuchea to explore the feasibility of moving the production line to Vietnam and Kampuchea to ease the cost pressure on the production line of the PRD. According to statistics from Vietnam's Ministry of investment, Vietnam's foreign direct investment increased by 41% in the 1-4 months of 2008.
Zhao Lingyun, Dean of the Hubei Academy of Social Sciences, said that the industrial pfer to Southeast Asia has become more evident since the publication of Document No. 44 by the General Administration of customs and the Ministry of Commerce in 2007. This is mainly because, on the one hand, compared with the eastern coastal areas of China, Vietnam, Burma and Kampuchea have lower labor costs, larger ecological space and preferential policies. On the other hand, quite a few enterprises in the eastern coastal areas of China are foreign-funded enterprises, and they will also seek new development space in a broader scope, including China.
Huang Yaodong, a Research Institute of the Institute of Southeast Asian Studies, Guangxi Academy of Social Sciences, believes that labor cost is the biggest advantage in the region, which is not only lower than the eastern coast of China, but also lower than that of the central and western regions. The second advantage is that the region has more tax preferences for foreign investment, and the investment formalities are also greatly simplified. The third advantage is the low cost of raw materials; besides, land cost is also a reason for attracting entrepreneurs.
According to the statistics of Japan Trade Promotion Council, Vietnam's production cost is lower than China's 15%-30% under the same conditions. The Hongkong Export Chamber of Commerce has investigated that thousands of garment factories in Vietnam and other countries will have an investment cost of HK $600-700, while in China, they will need several times more capital.
Analysts believe that the establishment and development of the ASEAN Free Trade Area and cooperation with China, Japan and South Korea will also contribute to the region. The regional market is unified, and the scale is considerable. The total population of some countries is about 530 million. The obstacles of restricting labor mobility are also decreasing. It can give full play to the labor advantages of Vietnam, Kampuchea and Burma, and alleviate the shortage of labor force in Indonesia, Malaysia and Thailand. In addition, Southeast Asia has excellent geographical location and numerous ports, which is attractive to enterprises interested in developing export processing trade. Finally, Southeast Asia was originally one of the manufacturing centers in the world. As early as the 60s of last century, large-scale foreign investment began.
The Southeast Asian countries that are more likely to undertake industrial pfer should be Vietnam, Kampuchea and Burma, which are located in the South China Peninsula. These countries have abundant labor force and relatively low level of development, and industrial development is connected to eastern China. Moreover, the countries of the Indochina Peninsula are deeply influenced by Chinese customs and rules and regulations, and are similar to Chinese culture, attracting more Chinese enterprises. It is reported that a total of 11 countries in Southeast Asia (Vietnam, Laos, Kampuchea, Burma, Thailand, Malaysia, Singapore, Indonesia, Philippines, Brunei and East Timor) are mainly distributed in the South China Peninsula and the Southeast Asia.
China's western region or the "East shoe West shift" pfer the best point.
But at the shoe fair in Western Chongqing, Wang Zhentao, President of AOKANG, said: "the pfer of industries to foreign countries needs to be taken into account that the technology of shoemaking by foreign employees is not very mature, and the expected growth of foreign labor force is 30% per year. Chongqing not only has the cost advantages of land, energy, raw materials, labor, but also has a more convenient advantage for the development of the western market.
The advantages of industrial pfer in Bishan, Chongqing: 1: the golden signboard of the shoe market in Western China: 2: the export base of Chongqing shoe leather 3: the local abundant labor force 4: the red bird, the Brazil shoe giant, has led the local shoe enterprises to develop 5: Leather inspection center and southwest shoe material trading, and the improvement of the supporting facilities in the Western China Leather City.
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