At noon on December 26, 2019, the sun was shining brightly in Myuda Industrial New Town, Mandalay Province, Myanmar. At Myanmar Longyuan Shoe Co., Ltd., workers were busy loading large and bulky shoes onto the car. Zhu Luxin, a manager of the company, said that these shoes were customized for German merchants, and the truck will arrive in Yangon the next day and then be transported to Germany by sea.
Longyuan Shoes was established in 2002 Founded in Shenzhen, it has gradually developed into an industry leader integrating international trade, OEM processing, and independent brands, with an annual output value of over 200 million yuan. In recent years, due to the significant increase in raw material prices, rising labor costs, and the reduction in export tax rebate rates, the company has embarked on a development path to expand new space and entered Baoshan Industrial and Trade Park in August 2017. , Baoshan Longyuan Shoes Co., Ltd. was established.
Data on Wu Xiaobin’s year-end show
In April 2018, the company followed Baoshan’s pace of “going to South Asia”. After visiting Miuda Industrial New City, it rented a house and put it into production before the construction of the factory in our city started. After several months After installing equipment, recruiting workers, and training, the first batch of shoes was produced on December 20 of that year.
This batch of shoes shipped to Germany totals 11,000 pairs and is the company’s last batch of products shipped out of the warehouse in 2019. At this point, more than a year after it was put into production, the company’s total output has reached 500,000 pairs.
In the factory building across the road from the warehouse, two production lines are running at high speed, and the Myanmar workers who are skilled in the operation are all young.
Luo Zhiwen, deputy general manager of the company, said that in addition to 8 management personnel from China, the company currently recruits 580 workers from Myanmar, aged between 18 and 25 years old. “As a labor-intensive industry, the biggest advantage of developing here is the low labor cost. The salary paid to ordinary workers in Shenzhen is more than 5,000 yuan, but here it only costs about 800 yuan equivalent to RMB.”
On the afternoon of December 26, 2019, the reporter and his delegation came to the construction site. This is an open land, with a huge Buddha statue standing not far away. Cars and excavators are roaring everywhere. Workers are stirring, laying bricks, and digging soil. 20 technicians from the 14th Hydropower Bureau are directing at various construction sites. They introduced that the project started on September 16, 2019, and is expected to be delivered for use in March 2020. Due to the tight construction schedule, they will not be able to return to China for the Spring Festival.
Zhu Yongxiang introduced that after these two factories are delivered for use, the construction of the next batch of 18 factories will begin. There are currently many businesses visiting here for inspection, and they are all interested in the rich labor resources and tax-free policy here.
The reporter learned from Mandalay Myuda Industrial Development Public Company, the main developer of Myuda Industrial New City, that at present, Mandalay Myuda Industrial Development Public Company The total population of Dele Province is more than 6.2 million, and there are about 3 million people within 50 kilometers of Myuda Industrial New City, of which the working population (18 to 64 years old) accounts for 68%. The company management committee regularly holds manpower recruitment fairs to provide Investors provide labor support.
Southeast Asia is becoming one of the transfer centers of the textile industry with its cheap labor force. So where is the next textile and apparel cost depression?
Africa will be the last “new continent” in the apparel industry
This All stem from the increasing saturation of other global clothing markets and the swelling of various corporate costs, and the financial crisis sweeping the world has contributed to the situation.
Africa is close to the European and American markets and has important cotton-producing areas. The merchants are also “very cooperative”. Compared with East and Southeast Asian countries, in addition to cheap labor, it is cheaper to transport clothing to Europe or the United States in East African countries. In addition, African countries signed a special trade agreement with the United States in 2000, and American clothing enters the African market duty-free. As the local cotton industry in Africa develops, local resources can be purchased to further reduce costs.
H&M and Primark international giants began to purchase from Ethiopia
International giants H&M, Tesco, Primark and other companies have also begun purchasing from Ethiopia because the country has no minimum monthly salary restrictions. For unskilled workers, the monthly salary is only 35 to 40 US dollars, which is obviously much lower than that in Myanmar. These foreign clothing manufacturers are very popular in African countries, and they also benefit from the abundant local cheap labor and energy. Kenya’s garment industry is also developing. Although the monthly salary in the country is about US$120, the government attracts these foreign businessmen with generous incentives.
The garment industry is one of the main pillar industries in Africa
The main participants in the world’s textile and apparel market and important customers in the cotton market are mainly from Asia, of which China accounts for a large proportion.
The garment industry is one of the main pillar industries in Africa. Southeast Africa has the most dynamic textile industry in Africa and is an important cotton-producing area. In recent years, it has attracted more A lot of money. Chinese companies can bring advanced technology and management methods to southeastern African countries, helping to improve local production processes; and try to integrate large-scale clothing production processes into the garment industry.And its related supporting industries have been transferred to southeastern Africa as a whole. </p
