Will The Cost Advantages Of Southeast Asian Countries No Longer Spin The "Southeast" Into Europe And America?

< p > a few days ago, Lu Tai A, a leader in color and fabric weaving, announced that it plans to invest $8 million to build a new annual production of 3 million shirts processing plants in Kampuchea.

Like Lu Tai A, factories in Southeast Asia are no longer one or two.

Since 2004, in the process of China's manufacturing industry moving out gradually, in order to enjoy lower labor costs and raw material prices, there have been nearly 200 a href= "//www.sjfzxm.com/news/index_c.asp" > clothing enterprises < /a > moved the production base to Southeast Asia.

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< p > most enterprises pfer to Southeast Asia. Their labor cost and rental cost are low, but the level of Labor Technology in Southeast Asian countries is not high, and the management is difficult and the production efficiency is low. In addition, they have to bear the hardship of "strikes" in these countries.

At present, the voice of Southeast Asian countries in raising wages is becoming increasingly fierce. The attraction of enterprises to invest and build factories will be greatly reduced, and the number of Chinese brands moving to Southeast Asia is bound to decrease.

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P, the world's largest shoemaker, Nike, Adidas and other famous sports brands, Baocheng Limited by Share Ltd is moving some of its production lines to Southeast Asian countries such as Indonesia and Vietnam. The strike in Kampuchea has brought about some impact on Baocheng's local factories.

Since 2013, although Baoji's revenue has remained stable, the continuous increase in labor costs has had a certain impact on its performance.

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< p > it is learnt that after consultation, a number of shoes and clothing manufacturers in Kampuchea will adjust the monthly salary of workers from 80 US dollars to 100 US dollars.

When asked whether he was affected by the "strike tide" in Southeast Asia, a clothing company in Jiangsu province said, "I haven't heard any news from there yet."

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< p > with the increasing demand of < a href= "//www.sjfzxm.com/news/index_c.asp" > labor cost > /a >, the cost advantage of Southeast Asia will no longer be.

However, enterprises that have built factories in Southeast Asia will not turn back to China in a short time. These enterprises have been basically stable in Southeast Asia. Although the cost of labor has improved, they are still lower than those in China.

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< p > when manufacturing enterprises are entangled in "flying" to Southeast Asia, Zhejiang cotton Cole Textile Group Co., Ltd. (hereinafter referred to as "Cole group") claims to spend $218 million to open its first overseas factory in Lancaster County, South Carolina, and this is also the first time that Chinese textile enterprises have gone to the United States to build factories.

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Cole, director of the office of the P group, said that the project's foreign investment was mainly aimed at tackling the high cost of labor and energy in the cotton yarn industry in China, avoiding the trade barriers set up by China's textile industry in the international market and promoting the implementation of the internationalization strategy of the enterprises in the world. Huang Guogang,

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< p > it is learnt that the Cole group's decision was made after a comparison between the Southeast Asian countries such as Vietnam and India.

The head of the company said that although the labor cost of the United States is high, it has advantages over Southeast Asian countries, but it can be found in cotton raw materials and cotton power consumption.

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< p > > a href= "//www.sjfzxm.com/news/index_c.asp" > Cole group < /a > to set up factories in the United States can bring some new enlightenment for the development of traditional manufacturing industry.

Comparatively speaking, the potential to build factories in Europe and the United States is even greater.

On the one hand, China's textile and garment industry has a high degree of dependence on exports, and exports are mainly concentrated in Europe and the United States. To build factories in Europe and the United States can reduce pport costs for garment enterprises with foreign export business. Building factories in Europe and America is conducive to opening the market, while selling goods in Southeast Asia to domestic or European and American countries has larger pportation costs; on the other hand, in Europe and America, labor costs in Southeast Asia are higher than those in Southeast Asia, and they are significantly better than those in Southeast Asian countries in terms of technology, management and talent.

This strategy of "entering Europe and the United States" will have a positive impact on the pformation and upgrading of textile and garment enterprises, as well as the development and improvement of their own resources, technology, market and brand competitiveness.

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< p > Li Jin, chief researcher of the Chinese Enterprise Research Institute, believes that the United States, South Carolina near the Atlantic, is close to Central America and Europe. It is a place where traditional manufacturing is more intensive.

In addition, there is also the advantage of a North American FTA, which stipulates that the trading partners in the region are free, which will help the foreign enterprises to reduce costs effectively.

This experience can be learned, but specific problems should be analyzed in detail.

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"P >" to run factories in Europe and the United States is not foolproof.

Now is the time when the renminbi continues to appreciate. If it starts to depreciate, it will have exchange rate risk.

Moreover, due to national security considerations, relevant departments may take some measures to limit them.

Therefore, it is not necessary to decide whether to run a factory in Southeast Asian countries or to go to a developed country to set up a factory. The enterprises should depend on their own situation and strategy to see which market is more suitable for themselves and then make a choice.

Li Jin said.

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