According to the German Financial Times reported on March 7th, wage increases and RMB appreciation have made China lose the cost advantage of textile, toys and other labor-intensive industries. Vietnam will become a strong competitor in China's textile industry.

Companies including Germany have begun to move their production from China to Vietnam.

The report quoted people from the German Textile Fashion Federation as saying that the wage cost of Vietnam's textile industry is 10% lower than that of China, especially in terms of medium and low grade textiles. Vietnam has already had strong competitiveness.

Textiles and footwear products account for 24% of Vietnam's exports.

Compared with Laos, Kampuchea and other low wage countries, Vietnam also has the advantages of long coastline and short pportation time.

Compared with China, Vietnamese textiles are not subject to EU import restrictions or import tariffs, and China's textile exports to Europe need to pay 12% of import tariffs.

The report also pointed out that Vietnam does not produce cotton, its textile supporting industry is incomplete, and there is no complete industrial chain. This is the main consideration that some foreign businessmen are still unwilling to withdraw from China to Vietnam.