Interviews
Vietnam is only a transitory option – Producers
01 Jul '08
1 min read
With continuously strengthening yuan, production cost in China has surged dramatically. Thus, now production in Vietnam is much lower and many enterprises are shifting here.
However, it seems that still many textile and footwear companies prefer China to Vietnam.
For instance, Skechers Shoes Co Ltd which is one of the biggest shoes enterprises in US, owns about 30 factories in China, most located in Guangdong province, but has only one unit in Vietnam. Company insiders explain that Vietnam not only offers advantage in production cost, but also has very low EU anti-dumping tax.
However, even with high expenses, China presents many more concrete advantages. It provides full industrial chain and unlimited supply of skilled workers. Besides, it also has huge domestic consumption market.
Experts agree that Vietnam was just a provisional option, so that manufacturers could adjust to the current tough conditions in China. They said that Vietnam with a population of only about 80 million could not fulfill the massive production capacity requirements.
Analysts assure that it will take atleast a decade for any country to replace China as the dominant production hub of the world.
However, it seems that still many textile and footwear companies prefer China to Vietnam.
For instance, Skechers Shoes Co Ltd which is one of the biggest shoes enterprises in US, owns about 30 factories in China, most located in Guangdong province, but has only one unit in Vietnam. Company insiders explain that Vietnam not only offers advantage in production cost, but also has very low EU anti-dumping tax.
However, even with high expenses, China presents many more concrete advantages. It provides full industrial chain and unlimited supply of skilled workers. Besides, it also has huge domestic consumption market.
Experts agree that Vietnam was just a provisional option, so that manufacturers could adjust to the current tough conditions in China. They said that Vietnam with a population of only about 80 million could not fulfill the massive production capacity requirements.
Analysts assure that it will take atleast a decade for any country to replace China as the dominant production hub of the world.
Fibre2fashion News Desk - China
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