PPE

Where is the next stop of Chinese shoemaking industry

At one time, “made in China” was a world card. However, with the rising costs and the upgrading of China’s manufacturing industry, labor-intensive industries such as shoe-making, textile and clothing began to move in or out, while those in Southeast Asian countries such as Vietnam, Thailand, Cambodia and Laos began to move out

however, any transfer will not be smooth. The first is the perfection of supporting facilities, including soft and hard conditions; The second is the stability and continuity of the political situation and policies

from the events that have happened, where should “made in China” move is still a question to be answered by relevant industry leaders

with the development of global economic integration, the world’s manufacturing industry is constantly developing and transferring, especially the footwear industry, which is extremely sensitive to cost, has never stopped its location transfer. Starting from the 1960s, it first moved from North America to central and South America, from Europe and America to Japan, then to South Korea and Taiwan, and then to the southeast coast of the mainland in the late 1980s and early 1990s. At the same time, some Taiwan enterprises transferred some production lines to Southeast Asian countries such as 1ndonesia and Vietnam

after entering the 21st century, due to the rapid rise of manufacturing costs in the Pearl River Delta, the world’s largest shoemaking base, some foreign-funded shoe enterprises that have been rooted in the Pearl River Delta for many years have begun to set off a new round of upsurge of moving to Vietnam, 1ndia, Bangladesh and other Asian countries. There are also some inward migration, the appearance of “South shoes to the north, East shoes to the west” spectacular scene

Baocheng industry, a sports shoe manufacturing giant OEM for Nike, Adidas and other brands, is moving to Anhui, Jiangxi, Henan and other central and western regions, while moving to Southeast Asian countries. 1n recent years, the production lines in Vietnam and 1ndonesia have increased year by year, while the production lines in the Pearl River Delta are gradually shrinking. Among them, in 2012, 51 production lines were cut down in Chinese mainland, and the production lines in the PRD region were greatly reduced. Wanbang shoes, a Taiwan funded enterprise specializing in Adidas sports shoes, set up a factory in Guangzhou in 1991, then moved to Qingyuan to set up Wanguo shoes (fresh) Co., Ltd., and then set up a factory in 1ndia in 2006. Brazilian international trader parnomon has transferred half of its business in Dongguan and other places to Sichuan, Qingdao and other places, and has also invested in building a shoe-making production line in Chongqing

Zhou Shijian, executive director of the China Society of international trade, once described the fate of labor-intensive OEM products such as shoe-making industry as “helpless” in an interview with the first financial daily. He believes that processing trade has completed its historical mission, and primary processing is doomed to be eliminated< According to Zhou Shijian, the world industrial transfer will not stop. 1n 1976, 53 pairs of shoes in every 100 pairs were produced in the United States, while only 1.5 pairs were left in 2006. The shoe industry is basically euthanasia. China's low-end shoe industry can not escape this fate, and the world shoe pattern is gradually shifting from highly concentrated in China to Southeast Asia and other regions data show that from 2003 to 2013, the wages of Chinese shoemaking workers increased by about 3.5 times, while the central parity rate of RMB against the US dollar has appreciated by more than 30%. Coupled with the rise of other costs, the profits have been basically eroded. At present, Chinese mainland coastal workers earn about $500 per month, while 1ndonesia has about $300, while Vietnam has only about 250 dollars. according to the survey results of the Asian Footwear Association, since the outbreak of the financial crisis in 2008, with the rising manufacturing costs in China, the footwear industry in Southeast Asia has snatched 30% of China’s orders. Li Peng, Secretary General of the Asian Footwear Association, expressed concern about this, saying that if the accelerated transfer of overseas orders is not noticed, it is likely that most factories in coastal areas will be transferred or closed in 5 to 10 years, and the footwear industry with more than 19 million employees will face a huge impact< On the one hand, the manufacturing industry needs to play the role of industrial clusters, and the formation of production supporting facilities takes a relatively long time; On the other hand, the political instability and frequent strikes in some Southeast Asian countries also affect the industrial transfer. 1n addition, some Southeast Asian countries have a relatively small population and can not undertake large-scale industrial transfer Huajian group, one of China’s largest women’s shoe manufacturers, once opened a factory in Vietnam, mainly to cope with trade friction. However, due to the imperfect local shoe-making facilities, low production efficiency and workers’ strike, Huajian’s factory in Vietnam finally closed down. However, Wanbang’s factory in 1ndia, just a few years ago, was once in a state of loss due to imperfect production facilities and lack of skilled workers frequent strikes by workers in Southeast Asian countries have brought a lot of troubles to industrial transfer. At the end of last year, a strike broke out in Cambodia, which affected the normal production of many shoe factories and garment factories. 1t was not until these factories promised to increase the monthly salary of workers from $80 to $100 from February 1 this year that the strike subsided< 1n an interview with reporters yesterday, Wu Zhenchang, chairman of Guangzhou Chuangxin Shoes Co., Ltd., said that although the labor force in Southeast Asia is cheaper than that in the Pearl River Delta, the investment risks are relatively high, and these risks are difficult to control and there are too many uncertain factors. 1n 1990, he moved his factory from Taiwan to Guangzhou. 1n recent years, troubled by labor costs, he intended to transfer some production capacity. He had visited Southeast Asia for many times, but he did not move. The unstable political situation in Southeast Asia and frequent strikes by workers are the main reasons why he hesitated to invest in Southeast Asia. He said that the decision will be made after this round of general elections in many countries in Southeast Asia and South Asia is over and the situation is clear. 1n contrast, he is more inclined to move the shoemaking industry to the West and east of Guangdong Li Peng said that compared with Southeast Asia, China’s investment environment and the quality of workers are more dominant. Although some domestic factories have shut down, it is mainly caused by the company’s own internal management problems rather than external factors such as politics, which are eventually solved, The shutdown of Dongguan Yuyuan shoe factory of Baocheng industry last month is the largest one in the shoe industry so far, but it will soon be properly solved and production will resume. Foreign shoe enterprises investing in some Southeast Asian countries are likely to be destroyed because of a strike or a political battle. From the perspective of risk, Li Peng suggests that shoe enterprises can move to central and Western China. Many regions still have sufficient labor force, and the labor cost is not higher than that in Southeast Asia. For example, in Guizhou, the monthly salary of workers is 1500-1600 yuan, which is comparable to the labor cost in Vietnam there is no obvious return of orders in the Pearl River Delta yesterday, about 4000 Chinese workers withdrew from Vietnam and left for home by passenger ship. At present, although the situation in Vietnam has not deteriorated further for the time being, and some shoe factories have started to resume work since yesterday, many Chinese employees are still worried and eager to return home, which will have a more difficult impact on the clothing and shoes industry for a long time in the future “in the late 1980s and early 1990s, most of the shoe-making enterprises in Taiwan moved to the mainland, and some of them also moved to 1ndonesia and Vietnam. After this incident, two or three Taiwan funded shoe enterprises were greatly impacted, while the large factories that OEM for big brands such as Nike and Adidas were relatively better, and were not affected much.” Wu Zhenchang, chairman of Guangzhou Chuangxin Shoes Co., Ltd., is in Taiwan recently. 1n recent days, many friends have come back to communicate with each other< 1n an interview with reporters yesterday, Wu Zhenchang said that whether the incident will affect the transfer of the shoe industry to Vietnam depends on the attitude of the Vietnamese authorities in handling the incident and the subsequent compensation plan. The impact of the storm is expected to last for a period of time. Now the biggest problem is that many key personnel sent from the mainland to Vietnam factories are anxious to be transferred back, and there is no suitable position for them in mainland shoe factories in this incident, Shunxing shoe factory, far east textile, shoemaker and other factories set up in Taiwan were all hit. The workshop of Yuyuan group of Baocheng industry, a sports giant OEM for Nike, Adidas and other brands in Vietnam, was shut down for a time from the safety point of view, although the employees and plant equipment were not damaged Tianhong textile was also impacted. After preliminary assessment, the company found that the property was slightly damaged, only affecting the mechanical control board of less than 20000 spindles, some waste cotton, some windows and computers. Tianhong textile has about 490000 spindles in South Vietnam, accounting for about 26% of the total yarn production facilities of the group. Tianhong textile said that due to the slight damage, the company’s facilities in Vietnam can resume normal operation in a short time in recent years, due to the rising cost in China’s coastal areas, many enterprises in clothing, shoes and other industries have transferred to Vietnam, 1ndonesia, Cambodia, 1ndia and other Asian countries the labor cost in Vietnam is about half of that in China’s coastal areas, and the factory rent is only about one third of that in China. The most attractive thing for Vietnam is its tax preference. 1f its products are sold to Japan, South Korea, 1ndia and other countries, it can achieve “zero tariff”, and it can also bypass the higher trade barriers faced by direct exports to Europe, the United States and other places. Moreover, the industrial chain in Southeast Asia is becoming more and more perfect. For example, at the beginning, Nike produced a pair of Nike shoes in Vietnam, and about 98% of the raw materials needed to be imported. At present, the raw materials needed to be imported have dropped to about 56% part of the footwear industry in Taiwan moved from Vietnam to Vietnam in the last century. After 20 years of development, Vietnam’s shoes industry gradually stabilized in Vietnam, and the shoe companies that had been transferring from Chinese mainland in recent years have promoted the rapid development of Vietnam’s footwear industry. At present, there are 400 enterprises producing leather shoes in Vietnam, mainly in Ho Chi Minh City, Pingyang Province, Haiphong and Hanoi. The output of sports shoes and leather shoes in Vietnam has increased rapidly at a rate of more than 20%. According to the data of Vietnam National Bureau of statistics, in 2013, Vietnam exported 2056.1 billion pairs of shoes, up 9.5% year on year; The value of exports rose 15.2% to US $8.4 billion footwear giant Baocheng industry has been increasing its capacity in Vietnam in recent years, with 120 production lines in Vietnam in 2010, and 156 in 2012, while production lines in Chinese mainland are shrinking. Li Peng, Secretary General of Asian Footwear Association, said in an interview yesterday that industrial transfer is a long-term trend and will not be interrupted by an emergency. From the current stage, the withdrawal of the backbone of the footwear industry in Taiwan and the mainland from Vietnam has had some impact on the production and management of Vietnam’s shoe factories. Whether or not it will affect the shift of the footwear industry from Chinese mainland to Vietnam remains to be seen. Br / >
in an interview with our reporter yesterday, a number of shoe-making enterprises in the Pearl River Delta said that the incident has not caused orders to flow back to the Pearl River Delta. Wu Zhenchang said that because Nike and other brands have relatively stable factories in Vietnam, purchasers are not in a hurry to transfer orders to other regions, which is common

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