Vietnam Has Encountered Bottlenecks In The "New Investment Hot Spot", And Many Textile And Apparel Owners Regret It.

How are those factories moving to Vietnam?

Before, Heard that John Wang, the shoe factory owner of Dongguan, invested 7 million yuan in a factory in Vietnam in 2015. Two years later, he stopped producing and sublet the workshop. 。 Wang said, as far as he knows, the other 6 Dongguan shoe factory owners have regretted moving to Vietnam.

Recently, more and more Vietnamese clothing factories and garment factories have gone bankrupt. Therefore, it is not a simple matter to move factories to Vietnam. What kinds of "holes" have they encountered?

Labor cost advantage is not in.

A lot of cloth boss said, in Vietnam and Kampuchea and other places to invest in factories, one of the important reasons is that the local workers are cheap, and the cost pressure is small. But now, this advantage is no longer there, and the wages of workers are getting higher and higher. At present, the minimum wage in Vietnam is about 140 US dollars to 180 US dollars (regional differences). The total salary and overtime pay are estimated at an average monthly salary of at least $300. If the number of employed persons in Vietnam is 150 thousand, the cost of personnel is more than 1 billion 400 million yuan per year.

According to the industry, the proportion of clothing brand in Vietnam has been very large. If we want to build a new factory or expand the production line, it will cause some business pressure, because there is no cheap labor in Vietnam now.

The new entrants will move to Vietnam, and the original enterprises will expand their factories. Now the two forces are all scrambling for jobs, which will only aggravate the pressure of competition, and the imbalance between the supply and demand of the local labor force and the overheating of Vietnam.

The outside world thinks that the clothing and footwear industry in the textile industry, because of its large production line in Southeast Asia, should be the benefit of avoiding the switch tax, but the result seems to be otherwise.

According to industry sources, the labor law of Vietnam stipulates that The enterprises entering the company must establish trapezoidal salaries, which are based on the minimum wage level announced by the government. The first level salary level is the minimum wage plus 7%. From the second level, each additional level increases by 5%, and so on.

For example, Assuming that the minimum monthly salary in Vietnam is 140 dollars, the first level salary is 149.8 dollars, the second level monthly salary level is 157.3 dollars, the third level is 165.2 dollars, according to the seniority of employees, the advance salary level distance.

Over the past ten years, the Vietnamese government has raised the minimum wage by 10% per cent per year. When the minimum wage rises, the trapezium salary will be increased. "It means that all employees are paid 15%, which is a terrible expenditure."

More Than This, Potential cost is also a big trap. For example, the annual payment of union membership fee is paid by 2% of the total salary of the labour force. The annual minimum wage plus ladder salary is increasing. The total salary scale continues to expand, and the union membership fee keeps rising. This does not include the local social security cost.

Vietnamese workers are inefficient and strike at a word.

According to industry analysis, The productivity of factories in Vietnam and Indonesia is about 80% of that in China, and workers in Southeast Asia are not only inefficient, but also frequent strikes and protests. Some workers protest, fainted or even strike at a slightly unsatisfactory level. And even if workers strike out of work, manufacturers will have to pay wages.

A shoe factory owner in Vietnam said: " The biggest problem is the efficiency gap between China and Vietnam. Vietnamese workers do not work overtime at all, most of them are unskilled, resulting in low productivity and late delivery time. I believe that the training of skilled workers in Vietnam will not be enough for us and small businesses. "

Besides, Vietnamese workers are not as hard-working as Chinese workers. Some workers may faint when they are in a bad environment, for example, they may faint when they smell gasoline. Even if such a "sentimental" worker is not allowed to dismiss the factory casually, he will face a lot of punishment if he casually discharges the workers.

Because of this, the normal production of many factories has been greatly affected, and even can not be delivered on time, resulting in the continuous reduction of orders.

Land use cost is increasing.

With the acceleration of foreign investment and construction in Vietnam, Vietnam's labor costs, land and factory rent are rising rapidly.

Limited by Share Ltd, an outdoor product in Haiyang, chose the relatively remote industrial zone in Jincheng County, Vietnam. The company's office director, Miss Wei, said: " When we arrived in 2017, the factory rent was $2.2 per square metre. The rent has risen to $2.8, and is rising very fast. Even so, from the perspective of enterprise feedback, most industrial parks are generally in full load operation.

Rents in northern Vietnam are rising, and land rents in southern Vietnam are also soaring. In several industrial parks in the surrounding provinces of Hu Zhiming, the rent rose from $30 per mu in 2015 to the current US $100.

afterword

In addition, Vietnam's textile industry chain is relatively incomplete, relying on imports of raw yarn and fabrics, which is also a bottleneck for Vietnam to invest in factories. It is hoped that the enterprises that run factories in Vietnam can make their plans ahead of schedule and deal with everything that may happen in the future. Road is not easy to go, but also to prepare ahead of schedule!