During 2015-16, some professionals predicted in interviews with many media:
“As for the transfer of shoe factories to Vietnam, I personally think that it may reach a critical point in about five years, because Vietnam’s population of less than 100 million is a flaw. By then, Vietnam will also face the same situation of “emptying the cage and replacing the birds” today.”
It seems that the predictions made back then are likely to come true.
Recently, employees of the Taiwanese Chi Hsiung Shoe Factory in Binh Duong Province, Vietnam, have been protesting outside the factory for several days.
A Taiwanese businessman with knowledge of the matter said that orders from the Chixiong Shoe Factory were suspended due to the epidemic and the company announced a temporary suspension of minimum basic wages. The workers were dissatisfied and applied to the local xx for a rally. “Now all Taiwanese businessmen are waiting to see how the authorities will handle it. ? Will it be ruined?”
The local government in Vietnam has a wait-and-see attitude
“Last week, the Taiwanese Huafeng Shoe Factory also announced the closure of x, and more than 4,000 people lost their jobs. X industry, now I heard that there are no orders until August.” A Taiwanese businessman in Binh Duong Province revealed that this wave of pneumonia epidemic has led to the closure of cities in Europe and the United States to protest, and the sales of general private consumer goods have declined significantly, including shoes, furniture, etc. The industry has suffered heavy losses, and many foundry factories in Vietnam are experiencing sluggish business. Some have shut down their factories first, while others are still operating.
A Taiwanese businessman in North Vietnam analyzed, “In North Vietnam, there is no such x war. Local gatherings in Vietnam must apply in advance. Therefore, the protest of the Zhixiong Shoe Factory, I think the local government in South Vietnam has It feels like waiting and watching.”
Attention shoe factory owners:
The attitude of the Vietnamese government has become an observation indicator
The Taiwanese businessman analyzed that so far, the Vietnamese official has not What kind of bailout measures, but I want to test the water temperature to see how much impact this social incident can have, and then decide the official response. He said, “Electroplating factories, shoe factories, and bicycle factories are industries for which the Vietnamese government no longer issues new factory licenses. Now that the industries are short of workers, the officials are taking advantage of this wave to drive people away.”
Taiwanese businessmen said that in recent years, due to the immigration of xx manufacturers and abundant foreign investment in Vietnam, workers are being robbed everywhere. The government has discouraged the shoe-making industry and even wants to move these industries to neighboring Cambodia. Therefore, the government has followed up on the Chixiong Shoe Factory. The response has become an indicator for all companies, including companies that want to invest and set up factories in Vietnam, and they will pay attention to this case.
Vietnam’s confidence:
The Vietnam-EU Free Trade Agreement officially comes into effect
The “Vietnam-EU Free Trade Agreement” (EVFTA) will be implemented in the EU and Effective in Vietnam. Vietnamese companies should pave the way for trade with the EU and strengthen export activities after the COVID-19 epidemic is over, especially planning to tap the benefits brought by EVFTA.
Representatives from the Multilateral Trade Policy Department of the Ministry of Industry and Trade of Vietnam recently stated that the agreement will take effect in the EU and Vietnam immediately after it is approved by the Vietnamese Congress and both parties complete the notification procedures in accordance with the provisions of the agreement. </p
