Pearl River Delta Orders Do Not Show Obvious Return

Yesterday, about 4000 Chinese workers were withdrawn from Vietnam and departed for home by ferry. At present, although the Vietnamese situation is not deteriorating for the time being, some shoe factories have resumed work since yesterday, but many Chinese employees still have a lingering fear and will go back to their hearts, which will be more difficult to eliminate in the future.

"In the late 80s and early 90s of last century, most of the shoemaking enterprises in Taiwan moved to the mainland, and some of them moved to Indonesia and Vietnam. After this incident, two or three Taiwanese shoe companies were hit harder, and the large factories which were OEM for Nike and Adidas were relatively better, with little impact." Wu Zhenchang, chairman of Guangzhou Chuangxin shoes industry Co., Ltd., in recent days, has come back to Taiwan to communicate with each other.

In an interview with reporters yesterday, Wu Zhenchang said whether the incident would affect the shoe industry's transfer to Vietnam, then we should take a look at the Vietnamese authorities' attitude towards the matter and the subsequent compensation scheme, and the impact of this storm is expected to continue for some time. The biggest problem now is that many of the backbone workers from the mainland to Vietnam's factories are anxious to tune back, and the mainland shoe factories have no place for them.

In this incident, Taiwan's local Shun Hing shoe factories, far east textiles, shoes and beauty factories were all affected. And for Nike, Adidas and other brand OEM's sports giant Baocheng industry's Yuyuan group's factory in Vietnam, although the staff and factory facilities were not damaged, but from a safety point of view, the plant once stopped working.

Tianhong textile (02678.HK) was also hit. After preliminary assessment, the company found that the damage to the property was slight, which only affected the mechanical control panels less than 20 thousand spindles, some waste cotton, some windows and computers. Tianhong textile has about 490 thousand spindles in Nanyue, accounting for about 26% of the total yarn production facilities of the group. Tianhong textile said that due to the slight damage, the company's facilities in Vietnam can resume normal operation in a short time.

The cost of labor in Vietnam is about 1/2 of that in China's coastal areas, and the rent of factory buildings is only about 1/3 of that in China. The most attractive part of Vietnam is its tax preferences. Products sold to countries such as Japan and Korea and India can achieve "zero tariff". They can also bypass direct access to Europe and the United States. Exit The higher trade threshold we have to face. Moreover, the industrial chain in Southeast Asia is becoming more and more perfect. For example, when Nike produced a pair of Nike shoes in Vietnam, about 98% of the raw materials needed to be imported, and the raw materials needed to import at present had dropped to about 56%.

After some 20 years of development, shoemaking enterprises in some areas of Taiwan moved from Vietnam to Vietnam in the last century, and gradually stabilized their roots in Vietnam. At present, there are 400 leather shoes manufacturers in Vietnam, mainly concentrated in Hu Zhiming, Pingyang, Haiphong and Hanoi. Vietnam's sports shoes and leather shoes are growing at a speed of more than 20%. According to data from the National Bureau of statistics, Vietnam exported 20561 billion pairs of shoes in 2013, an increase of 9.5% over the same period last year, and export value rose by 15.2% to 8 billion 400 million US dollars.

　　 Shoemaking giant Baocheng industry has been increasing its capacity in Vietnam in recent years, with 120 production lines in Vietnam in 2010 and 156 in 2012, while production lines on the mainland are shrinking.

　　 Asian Footwear Industry Association Secretary General Li Peng said yesterday in an interview with reporters that industrial transfer is a long-term trend and will not be interrupted because of a sudden incident. From the present stage, the withdrawal of the backbone of the footwear industry in Taiwan and the mainland from Vietnam has had some impact on the production and management of Vietnam's shoe factories, and whether it will affect the shift of the footwear industry from mainland China to Vietnam remains to be seen.

A number of shoe-making enterprises in the Pearl River Delta yesterday told our reporter that the incident did not lead to the return of the order to the PRD. Wu Zhenchang said that because Nike and other brands are relatively stable in Vietnam, buyers are not in a hurry to transfer orders to other regions, and are generally in wait-and-see. The order has not increased significantly in recent days.

Guo Xiaoping, the responsible person of Dongguan Huahong shoes industry Co., Ltd., also said that the order has not increased significantly. The factory spends about 130 yuan a day on a worker. It is impossible to undertake cheap processing orders from Vietnam. It can only work towards shoes with higher value. The demographic dividend of the Pearl River Delta is basically lost, and the production factors of cheap OEM products are gradually not available. Moreover, from the situation of many times of industrial transfer in the world shoe industry, there is no possibility of countercurrent.