Faced with the global economic downturn and the outbreak of the new coronavirus, China’s title of “world factory” has been severely threatened.
Recently, major suppliers from around the world are closing a large number of factories in China and moving closer to building factories in Southeast Asian countries. In the field of clothing, “Made in Vietnam” is now quietly occupying the market of “Made in China”. Many people even speculate that Vietnam is likely to become the next “world factory.”
In 2009, Nike’s Vietnam foundry completed a comprehensive surpass of China’s production capacity; in 2012, Adidas’s last mainland China factory closed in Suzhou; in April 2018, Uniqlo announced that China’s production capacity will be transferred to Southeast Asia, and Vietnam will bear 40% of total production.
So, what ability do Vietnamese garment factories have to take away Nike and Adidas from our Chinese market? What is the reason that attracts so many suppliers to invest in setting up factories?
Direct reasons: sufficient labor and low worker costs.
There are currently about 30 million young adults in Vietnam. While my country’s population is aging significantly, Vietnam’s population is relatively young. Vietnam will maintain this advantage for a long period of time, thereby increasing the competitiveness of its labor force. Labor costs in Vietnam can be nearly 50% cheaper. The average monthly salary of production workers in Vietnam is US$216. Moreover, according to World Bank data, Vietnam has one of the countries with the largest labor force in Southeast Asia.
Answers from a set of data.
First of all, according to the Vietnam People’s Daily, there are already 6,000 textile and garment companies accounting for 15% of Vietnam’s total exports, making Vietnam’s textile and garments one of Vietnam’s leading economic industries. , and made Vietnam one of the three largest textile and apparel exporters.
Secondly, public information shows that Huafu Vietnam enjoys corporate income tax exemptions and exemptions for four years starting from the first year of profit and a 50% reduction in corporate income tax for the subsequent nine years. At the same time, Vietnam There is no VAT.
Also, Vietnam’s average annual export volume of textiles and clothing exceeds US$30 billion, accounting for 11% of global clothing exports; and its main exports are the United States, Japan, and South Korea, with the United States accounting for 51%.
Vietnam’s garment industry cannot be underestimated. </p
