Those Runaway Chinese Textile And Garment Factories Have Returned From Vietnam.

According to Hongkong's South China Morning Post, July 12th:

The Sino US trade war prompted some Chinese shoe factories to move to Vietnam. A shoe factory owner gave up a factory that invested 5 million yuan in just one year.

　　 Global Times screenshots

Zhou Ping has been running a shoe factory in Dongguan, Guangdong, China's manufacturing center. In May 2017, Zhou and another factory owner rented a 1200 square meter factory in Vietnam's Pingyang province to produce accessories for an American clothing brand.

He said: "we thought it was a good idea at that time, because on the surface, Vietnam's factories and manpower were lower than that of Dongguan, and we saw more and more European and American customers in Vietnam. A large number of upstream factories moved there, so we built 4 production lines in Vietnam, employing 110 locals.

　　 However, by October 2018, due to rising costs and "cultural problems", Zhou had to stop and withdraw. Zhou 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.

John Wang, another Dongguan shoe factory owner, 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 and are now planning to "give up".

　　 Video screenshots

An executive at a Taiwanese equipment manufacturer said that the company moved many of its production from Guangdong to Hu Zhiming, and found it difficult to recruit and retain employees. "Now, the workforce is hard to stabilize, and the job market is very hot. Vietnamese workers are jumping about." As more companies enter Vietnam, the situation will be even more serious.

Tough enough! Vietnam announced another wage increase.

According to Yue Tong Hanoi,

In the afternoon of July 11th in Hanoi, after the second round of negotiations, the national wage Council of Vietnam decided that the minimum wage in 2020 would be raised by 5.5%.

Accordingly, since January 1, 2020:

The minimum wage in a region will increase by 240 thousand. The shield will increase from 4 million 180 thousand to 4 million 420 thousand.

The minimum wage in the two category will increase by 210 thousand. The shield will increase from 3 million 710 thousand to 3 million 920 thousand.

The minimum wage in the three category will increase by 180 thousand. The shield will increase from 3 million 250 thousand to 3 million 430 thousand.

The minimum wage in the four category increased by 150 thousand. The shield increased from 2 million 920 thousand to 3 million 70 thousand.

Yin Maoye, Vice Minister of Vietnam's Ministry of labour and the Ministry of social affairs and chairman of the national wage Council, said that the current minimum wage standard has already met more than 95% of the living needs of workers and their families.

After the Vietnam minimum wage standard was raised by 5.5% in 2020, the wages of labourers will basically meet the minimum living security needs of employees.

According to the results of the survey of the Vietnamese Federation of labor unions, the minimum wage standard increased by 5.3% in 2019, and the living conditions of workers have been improved. The minimum wage standards will continue to meet the basic needs of people's lives.

China's trade object: the United States has been replaced by ASEAN to third

According to today's Nikkei Chinese network,

China's trade structure began to change. According to the data released by China Customs General Administration in July 12th, trade volume between China and the United States decreased by 14% in the first half of 2019 (1~6 months), down to 258 billion 300 million US dollars.

The United States is surpassed by the association of Southeast Asian Nations (ASEAN). It has dropped to third place in China by country and region. The gap between the United States and the European Union (EU) is widening.

Broadcasting British Corporation (BBC) reported that more and more countries in Southeast Asia began to deny that they became winners in trade wars. Feng Huilan, former Indonesian business minister, described Mari as "two elephants fighting. We do not want to be trampled to death". Southeast Asian countries are facing the threat of "next turn to you". (Pangestu)

　　 Comprehensive foreign media coverage

The cable news network (CNN) reported last Thursday (4):

Since the Sino US trade war, Vietnam, China, Taiwan, Bangladesh and South Korea have been the four winners of this war.

The United States imports Vietnam, Taiwan, Bangladesh and Han Shangpin.

Recorded double-digit growth.

　　 According to the report, for the first 5 months of 2019, the US imports from China decreased by 12% compared with the same period in 2018. By contrast, imports from Vietnam, China, Taiwan, Bangladesh and South Korea increased by 36%, 23%, 14% and 12% over the same period in 2018.

Many manufacturers consider moving out of China under the pressure of tariffs, but finding alternatives to China's origin is not easy, the article said.

Southeast Asian Nations deny becoming winners of trade wars

"We don't want to be trampled to death."

　　 Reading extension:

Broadcasting British Corporation (BBC) reported that more and more countries in Southeast Asia began to deny that they became winners in trade wars. Feng Huilan, former Indonesian business minister, described Mari as "two elephants fighting. We do not want to be trampled to death". (Pangestu)

She believes that trade war is a double-edged sword for Southeast Asian countries.

In the face of the United States, Southeast Asian countries face the threat of "next turn to you". She added that in the face of the Unilateralism Policy of the United States, small states would not be placed on an equal footing. The best case is to return to the trade framework based on rules and multilateral systems.

It is reported that Vietnam has been named by the United States at the time when the Sino US trade war is not over yet. President Trump said before the group of twenty summit that many companies were moving to Vietnam, but Vietnam made even worse use of China than China. As a result, in July 2nd, the commerce department imposed a punitive tariff of up to 456% on iron and steel products from Vietnam.

According to the report, the US Department of Commerce will instruct the US Customs to levy a cash deposit of up to 456.23% for Vietnam's two steel products, which are produced in South Korea or Taiwan, China. The deposit applies to goods not yet settled since August 2, 2018.

US Enterprises: no choice but China!