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The Chinese fear that Vietnam will succeed in the new plant

The Chinese fear that Vietnam will succeed in the new plant

The Chinese fear that Vietnam will succeed in the new plant

Many technology lines are being opened in Vietnam, and in China some factories have been abandoned, smartphone assembly workers are out of work.

follow up Think of China The question of whether Vietnam will become the world’s new factory is causing a stir in Chinese online forums. This page quotes the newspaper article “Goodbye China, Hello Vietnam”. FAZ Even Germany’s international press said that “Vietnam is becoming a better and cheaper place” to support the argument that it believes in the world’s tech giants.

Apple CEO Tim Cook at the Luxor factory in 2017. Photo: Reuters

Apple CEO Tim Cook at the Luxor factory in 2017. Photo: Reuters

In the meantime Sinai Recently, information keeps emerging, such as Apple’s first Apple Watch product, MacBook in Vietnam; Samsung Manufactures Semiconductor Components at Thai Nguyen Plant; The American chip corporation intends to expand its activities in Vietnam… more concerned about the problem. On the other hand, things are less rosy on the smartphone assembly market in China. Demand for mobile phones has declined, and some major manufacturers have relocated some of their production lines to Southeast Asia and neighboring countries. Many smartphone makers in China have lost their jobs and some say abandoned factories are springing up.

“Some factories in Dongguan have closed, showing that they are not as competitive as factories in Vietnam. They have a cheap labor source that can replace China as the world’s factory,” Zhang Li commented on Weibo this week.

Think of China The process of moving production to Vietnam started in 2011. He mentioned that some business owners said it started in 2018. In the end, many companies moved to Vietnam to reduce risk in the supply chain.

Charles Wong, director of Superair EMS Limited, which specializes in manufacturing automation lines in Hong Kong and has a factory in Hai Dung, said it has been investing in China for more than twenty years. However, in March 2020, the company relocated the factory to Vietnam. “There isn’t a huge difference, so we can easily adapt. We are forced to expand the factory in this country according to customers’ requests. Many partners would like to shift the focus of activities outside of China for 3-4 years. That worries them.” If they don’t set up factories in different countries, the supply chain may be affected,” Wong explained.

However, some experts see China’s position as the world’s factory as irreplaceable. SCMP Beijing University economics professor Yao Yang quoted, “There is no need to worry about China’s manufacturing industry expanding into Southeast Asia. China’s growing manufacturing capacity is still an issue, but there’s no need to worry. Vietnam, China will retain the world title. Factories for at least 30 years.”

Professor Tang Jie, former vice mayor of Shenzhen, said, “China should be careful to let Vietnamese products through Shenzhen. We can’t just tell companies not to buy. Instead, we need to create a better environment to facilitate value growth. ” Chain company.”

follow up Global TimesChina should not underestimate the competition from Vietnam and must continually improve market conditions to attract and retain foreign investment and strengthen its complementary manufacturing ties with Vietnam. How much Vietnam can benefit from China’s manufacturing shift depends on its ability to “absorb” new investment. It is important to improve the infrastructure and the business environment.

“New foreign investment, particularly in the manufacturing and technology sectors, will help make Vietnam a key manufacturing hub in the region. The country can use this changing trend to make the country’s economy more resilient,” he said. An important point in the global supply chain Think of China Opinion.

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