Dongguan industry chain attracts high end shoe making industry

the zero tariff of China ASEAN Free Trade Area has greatly enhanced the investment advantages of the region and attracted many industries< However, Zhang Huarong, chairman of Huajian, firmly told reporters on January 7 that before the "temptation" of this kind of industry, "the advantages of Dongguan's footwear industry can exist for at least 10 to 20 years, and the advantages of China ASEAN Free Trade Area will be very limited in the next few years."< 1n addition to China, ASEAN has signed free trade area agreements with Japan, South Korea, 1ndia and other countries. Once Chinese enterprises invest in ASEAN, their products can also enjoy preferential tariff treatment of free trade area between ASEAN and these countries not only that, the labor cost of ASEAN is 3 / 5 lower than that of mainland China, and the land is cheap, which has already attracted many global shoe-making giants to lay out in ASEAN. For example, the “owner” of Dongguan Yuyuan shoe factory, Taiwan Baocheng group’s factory, has been blooming everywhere in Vietnam, 1ndonesia and other places. Coupled with the temptation of “zero tariff” after the completion of the free trade zone, many enterprises are “ready to move” “with the opportunity of zero tariff in China ASEAN Free Trade Area, the company is preparing to transfer part of its production lines to Southeast Asia, which will help to avoid trade friction in the future.” Wu Zhenchang, chairman of Chuangxin shoes, revealed to the media that the production lines to be transferred include those for export to the EU and ASEAN. “The labor force in Southeast Asia is cheap, and the 16.5% anti-dumping duty can be exempted for export to the EU in ASEAN, which can completely offset the cost of transportation of raw materials.” Wu Zhenchang said what attracts investors in ASEAN market is its huge market prospect. According to the data just released by China Economic Net yesterday, ASEAN has become China’s largest shoe export market in 2009. 1n 2009, 490 million pairs of shoes were exported to ASEAN through Shenzhen port, with a rapid growth of 1.1 times, accounting for 22.1%, making ASEAN jump to the first place in the shoe export market at Shenzhen port. Dongguan enterprises are the “main force” in the growing export force of ASEAN shoe industry limited by the weak industrial chain “as long as the political situation of ASEAN countries is stable, it has great attraction to Dongguan shoe enterprises, especially Vietnam, Myanmar and other countries.” Zhang Huarong acknowledged the attraction of the China ASEAN Free Trade Area, but said it was very limited for the high-end footwear industry at present industry insiders believe that although ASEAN has obvious cost advantages, Dongguan shoe industry has greater advantages in the industrial chain, and the high-end shoe industry pays more attention to supporting the industrial chain, including raw material supply, human resources, production machinery and other aspects. Only from these aspects, Zhang Huarong said, “Dongguan shoemaking enterprises have at least 10 to 20 years to go, and it is unlikely that Dongguan enterprises will transfer to ASEAN for investment in the next few years.” Huajian opened a factory in Vietnam a few years ago. Although the local labor cost is 3 / 5 lower than that in Dongguan, the shoemaking facilities in Vietnam are far less than those in Dongguan. Many raw materials need to be supplied here, and the production efficiency is relatively slow. The quality of skilled workers is not as good as that of Dongguan workers with developed shoemaking industry. 1n addition, they are not familiar with the local cultural background, There are great difficulties in operation and management “zero tariff in the free trade zone is good news for Chinese enterprises, and whether Vietnam factories will restart is still under consideration.” Zhang Huarong said

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