Vietnam’s supply chain role expected to remain: AmCham

rockdog

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Vietnam officially surpassed China to become the main production place for Nike shoes.

CNBC news agency quoted the newly released financial report of the sports company Nike as saying that in 2021, Vietnam's shoe production for Nike accounts for 51%, while this rate in China has dropped to 21%. In 2006, China produced shoes for Nike at 35%.
Chinese footware export volume has increased by 1.3 billion pairs a year, and the corresponding export value is also increasing.

Wind data shows that in 2021, China's exports of shoes, boots, leggings and similar products and their parts will amount to US$51.7 billion, an increase of 35.7% from US$38.1 billion in the previous year, and a slight increase from US$47.7 billion in 2019 before the epidemic. There is growth.

In other words, in 2021, the export volume of China's footwear industry will increase by 13.6 billion US dollars. If converted at the current US dollar to RMB exchange rate, it will be about 86 billion yuan.

Take Vietnam as an example. Before the spring of 2021, Vietnam has maintained its title of "model student" for epidemic prevention and control. Since the second half of the year, the Delta began to spread in Vietnam, and it has been out of control since then. The epidemic first broke out in the industrial park and the economic center of Ho Chi Minh City, and factories were forced to shut down, which had an impact on Vietnam's domestic and international industrial chains, and many orders were lost from Vietnam. For example, in order to meet the epidemic prevention requirements of the local government in Vietnam, many factories under Fengtai (9910.TW), one of Nike's top five suppliers, have suspended operations.


With the closure of factories and the loss of orders, Vietnam's footwear exports have fallen sharply. Wind data shows that from August to October 2021, Vietnam’s footwear exports were US$850 million, US$700 million, and US$750 million. Such export levels were cut in half from $1.75 billion in July of that year.
 

VivaVietnamm

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Chinese footware export volume has increased by 1.3 billion pairs a year, and the corresponding export value is also increasing.

Wind data shows that in 2021, China's exports of shoes, boots, leggings and similar products and their parts will amount to US$51.7 billion, an increase of 35.7% from US$38.1 billion in the previous year, and a slight increase from US$47.7 billion in 2019 before the epidemic. There is growth.

In other words, in 2021, the export volume of China's footwear industry will increase by 13.6 billion US dollars. If converted at the current US dollar to RMB exchange rate, it will be about 86 billion yuan.

Take Vietnam as an example. Before the spring of 2021, Vietnam has maintained its title of "model student" for epidemic prevention and control. Since the second half of the year, the Delta began to spread in Vietnam, and it has been out of control since then. The epidemic first broke out in the industrial park and the economic center of Ho Chi Minh City, and factories were forced to shut down, which had an impact on Vietnam's domestic and international industrial chains, and many orders were lost from Vietnam. For example, in order to meet the epidemic prevention requirements of the local government in Vietnam, many factories under Fengtai (9910.TW), one of Nike's top five suppliers, have suspended operations.

With the closure of factories and the loss of orders, Vietnam's footwear exports have fallen sharply. Wind data shows that from August to October 2021, Vietnam’s footwear exports were US$850 million, US$700 million, and US$750 million. Such export levels were cut in half from $1.75 billion in July of that year.
No one care. People just see Nike quit CN to VN bcs CN is not a good place for manufacturing anymore due to trade war and high labor cost.

Iphone still stay in CN bcs CN is still a big market to Iphone, if CNese stop buying Iphone, then Apple will quit CN and move to VN, too :cool3:
 

VivaVietnamm

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Beause VF supply chain is massively relies on China, even some are from western brand.s
Lots of companies are working with VF and know what's going on inside.

ZF uses Chinese team work with VF for L2/L3 auto drive.
View attachment 134149

Chinese Dalian Haosen Equipment Manufacturing Co., Ltd. helps VF builiding the factory, hope this time VF would provide Air conditioner to them.
View attachment 134150





That's why i said you stayed in assembly line for too long.

You also said:



By your logic, East Asia nations don't need EUV for next 10 year, since EUV is mainly for 10mn below.
Obviously, you lack of knowledge on this area and eating your own words.




If you have minimum knowlege, you should know that, the EUV machine is actually inspired and verified by TSMC, and the key person is a Taiwanese engineer Lam Benjian.

After 20 years of hard work, ASML finally waited for their first nobleman- TSMC ’s ghost talent Lin Benjian , a character who can stand up to Zhang Zhongmou. If Zhang Zhongmou created TSMC in the first 20 years, Lin Benjian would make a huge fortune for TSMC in the next 20 years.


You have to read before talk.




As the bottom level nation of ASEAN, you as Vietnamese i don't think you fully understand how East Asia people are hard working on Hi and core tech vs western world. I know lots of Vietnamese identify themselves as East Asia nation, but most of us hate to accept that.

Whatever u said, useless East Asia people living in CN-JP can't make EUV machines for at least 10 years, u guys only good at bowing down and beg for tech transfer from white master :lol:
 
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rockdog

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No one care. People just see Nike quit CN to VN bcs CN is not a good place for manufacturing anymore due to trade war and high labor cost.

Iphone still stay in CN bcs CN is still a big market to Iphone, if CNese stop buying Iphone, then Apple will quit CN and move to VN, too :cool3:
You only see Brands and Assembly Lines, but you don't know that, those assembly line owners are mostly from East Asia.

In last ten years, NIKE's stock value only raised two times, but those factory owners, like Shenzhou International stock value raised 10 times. The Vietnamese assembly lines workers only play minimum parts, nothing to be proud of.

Chinese Shenzhou International not only provide assembly lines, but also materials and supply chains.

Adidas, Nike, PUMA and UNIQLO are all world-class fashion brands that we are familiar with. These big names have a very important feature, that is, they mainly manage brands and markets. Part of the production work is entrusted to a third-party manufacturing plant to complete.

Shenzhou International (02313.HK), the leader of China's textile manufacturing industry , is the above- mentioned world-class brand and an important manufacturing foundry in China. Adidas (Adidas), Nike (Nike), Puma (PUMA) and Uniqlo (UNIQLO), the four major international companies, account for about 80% of the total sales revenue of Shenzhou International (02313.HK).


 

VivaVietnamm

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You only see Brands and Assembly Lines, but you don't know that, those assembly line owners are mostly from East Asia.

In last ten years, NIKE's stock value only raised two times, but those factory owners, like Shenzhou International stock value raised 10 times. The Vietnamese assembly lines workers only play minimum parts, nothing to be proud of.

Chinese Shenzhou International not only provide assembly lines, but also materials and supply chains.

Adidas, Nike, PUMA and UNIQLO are all world-class fashion brands that we are familiar with. These big names have a very important feature, that is, they mainly manage brands and markets. Part of the production work is entrusted to a third-party manufacturing plant to complete.

Shenzhou International (02313.HK), the leader of China's textile manufacturing industry , is the above- mentioned world-class brand and an important manufacturing foundry in China. Adidas (Adidas), Nike (Nike), Puma (PUMA) and Uniqlo (UNIQLO), the four major international companies, account for about 80% of the total sales revenue of Shenzhou International (02313.HK).


It is hard to deny the fact that the fact that multinational corporations such as Nike and Adidas move to look for new production bases will cause China to lose many job opportunities,losing huge taxes , slow down technical innovation, new production technology as well as a healthy competitive environment. :lol:

------------------------------------------------
Nike and Adidas: From Made in China to Made in Vietnam


In recent days, domestic and international press and public opinion have been actively discussing the issue, Vietnam surpassed China to become the production base for Nike and Adidas products the most.
Worried about the trend of global shifting, especially when more and more world giants decide to shift production from China to Vietnam, Chinese scholars and online communities even reassure themselves that "don't be afraid", because this wave is only temporary, and the country of more than 1.4 billion people still has many other opportunities to "turn the tide", reasserting its position as the world's leading manufacturing factory. of their own, despite the Covid-19 pandemic or trade conflicts, competing head-to-head between the US and China.

As Sputnik stated in the previous report, in the early days of January 2022, many mainland Chinese and Taiwanese media outlets were all agitated and worried about China being "surpassed" by Vietnam, becoming a country. manufacturer of the most Nike and Adidas products.
China's De Nhat Tai Kinh (Yicai) in an article titled "Who is making the most Nike shoes?" affirmed that, in just 10 years, Vietnam has replaced China.
Before 2010, China gradually confidently rose to become the world's leading factory. This country is also the country that produces the most Nike products globally. But after a decade, the chessboard seems to have been reversed. China lost that proud position to Vietnam.

The situation with Adidas is similar, currently, 40% of footwear is produced in Vietnam. Notably, in 2013, Vietnam replaced China as the largest production base for Adidas shoes.
At that time, 35% of Adidas shoes were made in Vietnam, while China accounted for 31%. At the same time, the corresponding production rate in Vietnam has increased to 42%, China is only 15% in 2020, showing a clear shifting trend.
“If Chinese customers choose to buy a pair of Nike sports shoes at the store, it is very likely that the product they choose is made in Vietnam "Made in Vietnam", emphasized Yicai.

Chinese experts, media and netizens have reason to worry because the trend of global shift is getting stronger and stronger. It is the recent Covid-19 pandemic, the prolonged and fierce US-China trade war, which has reminded American companies and the world's leading multinational corporations that they cannot forever depend on Beijing and the global market. China's billion population.
The Chinese are also searching for answers, after all, what forces pushed Nike and Adidas from "Made in China" to "Made in Vietnam"?
"What has China lost in the increasingly strong global shift of this manufacturing industry?" asked De Nhat Tai Kinh.
"Do not panic"
As Sputnik mentioned, Nike's financial report for 2021 shows that Vietnam has replaced China as the largest manufacturer since 2010. Along with Indonesia, the world giant has no longer attached to it. China.
The world's largest sportswear brand, Nike does not have its own manufacturing plant. This group mainly hires manufacturing plants outside the US, whichever country has more open-door policies, open investment, favorable geographical location, potential market, and reasonable labor costs. more attractive to "eagles" like Nike.

China is worried when Vietnam becomes the "promised land" of Nike and Adidas

Over the years, Nike's proportion of factories in Vietnam has continuously increased. Statistics show that 50% of Nike shoe products are manufactured in Vietnam in the year and in 2021, this percentage will increase to 51%. At the same time, China's share of production has gradually decreased from 35% in 2006 to 21% in 2021.
Chinese experts admit that the gradual withdrawal of Nike, Adidas and international sports product brands from China will have a negative impact on the Chinese manufacturing industry. In general, the trend of global shifting when the big players leave China for Vietnam or neighboring countries is difficult to avoid, but this is still a loss for Beijing as well as the market of billions of people.

It is hard to deny the fact that the fact that multinational corporations like Nike and Adidas move to find new production bases will cause China to lose many job opportunities, huge taxes, slow down the economy. technical improvement, new production technology as well as a healthy competitive environment.


At the same time, according to Mr. An Quang Dung, from the Credit Management Committee of the China M&A Association, the transformation of production links of brands like Nike will have a significant negative impact on the manufacturing industry. Made in China and domestic brands.

“The gradual relocation of factories to Vietnam will have a huge negative effect on China. Especially, for the domestic footwear industry, it will also lose the opportunity to raise levels in technology, marketing, and management by competing with leading global corporations," worried Mr. An.
Mr. Cheng Weixiong, CEO of Shanghai Liangqi Brand Management Company, analyzed that this moving trend is inevitable and China should not be too alarmed.

"China's processing, manufacturing and manufacturing industry has undergone initial development steps and now needs to be upgraded to a new level," Mr. Cheng reassured.
Chinese experts also believe that the partial shift of the production line will not be an "earthquake" for the mainland's domestic footwear industry because the domestic production capacity can fully meet the demand. demand for domestic consumption as well as for export.
Why did the world giant choose Vietnam?

There are many reasons that can explain the story that for the first time Vietnam surpassed the world's leading manufacturing factory, China became the world's largest producer of Nike products.
The British Guardian newspaper said that Vietnam is emerging as one of Asia's leading important production centers, playing a large role in the global supply chain, especially in technology and apparel products. , footwear and sportswear.

Favorable geographical location, tax incentives, and cheap labor are strengths that help Vietnam compete in attracting FDI with China as well as becoming a "promising land" for investors.
The Chinese press said that, first of all, Vietnam has a preferential corporate income tax policy for manufacturing companies since January 2015. Accordingly, foreign investors are entitled to many related preferential policies, corporate income tax that meets a number of conditions is exempt for the first 4 years, 50% reduction of payable tax for the next 9 years and 10% for the next 15 years.
Along with that, Vietnam also has other preferential policies such as import tax exemption for goods used to create fixed assets, quarterly value-added tax declaration, and investment credit incentives. and exempted from land rent and water surface rent. Although these policies have since been changed in line with the actual situation, they are still to create maximum favorable conditions for investors.
The second strength of Vietnam is abundant human resources and cheap labor costs. The De Nhat Tai Kinh newspaper even interviewed a Vietnamese worker, emphasizing that working at Nike's factory is much higher and more stable than farming, and the working environment is also better. Of course, foreign giants also have the advantage, labor costs in Vietnam are lower than in China, so this is a wise choice.
General Director of Shanghai Liangqi Brand Management Company Cheng Weixiong noted that multinational corporations consider very carefully when deciding to move production lines, from external factors such as political fluctuations. (Strategic rivalry between the US and China), to export quotas, tariffs, exchange rates, production capacity, delivery terms, labor costs, geographical location...
"Nike is a global brand, so you can't put your eggs in one basket," said Cheng, explaining the mentality of global corporations that can't be too dependent on China.


According to information from an FDI enterprise specializing in manufacturing and processing shoes for many major shoe brands in the world, including Adidas and Nike, shared with Tuoi Tre, there are two reasons why production orders are Leather and footwear outsourcing hahttps://vn.sputniknews.com/20220110/viet-nam-thanh-trung-tam-san-xuat-moi-cua-the-gioi-trung-quoc-co-ly-do-de-lo-so-13165201.html
 

Chaplin

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Thousands strike work after Nike supplier cuts Tet bonus
By Phuoc Tuan, Le Tuyet January 7, 2022 | 07:59 pm PT

Thousands of workers of Taiwanese-invested footwear maker Pouchen Vietnam strike work in the southern province of Dong Nai, January 7, 2022, to protest the company’s Tet bonus policy. Photo by VnExpress/Thai Ha
Thousands of workers of Taiwanese-invested footwear maker Pouchen Vietnam, a Nike contract manufacturer, struck work Friday, demanding the same Tet bonus as last year.
They refused to return to work after finishing their lunch to protest the company’s policy to pay less bonus than last year for the coming Tet (Lunar New Year) festival.
Tet, the most important Vietnamese festival, falls early February this year.
The workers stood on national road 1K in front of their factory’s entrance, causing traffic congestion for hours. The strike affected others and all 14,000 workers of the factory in Bien Hoa Town, southern Dong Nai Province, stopped working.
A mobile police team was dispatched to maintain order in the area.
A female worker said that the company had announced Thursday that employees who have worked for it a full year or more will be given Tet bonuses of 1-1.54 months’ salary – around VND5 million ($217) to nearly VND20 million.
The highest bonus in 2021 was 1.87 months’ salary, and in previous years, 2.2 months. "With this (coefficient), workers’ Tet bonus in 2022 will be lower than before," she added.
A Pouchen representative said that in 2021, the company had faced difficulties in production and business. When the fourth wave of Covid-19 broke out, the factory had to stop working from July 12 to Sept. 30, 2021. On Oct. 5, 2021, it resumed production, but at 60 percent capacity.
Due to the failure to fulfill the production plan, profits fell, so the Tet bonus, the biggest and most anticipated reward for workers, could not be the same as the previous year. The rep also said that under the collective labor agreement, the company would pay Tet bonus to employees based on its business performance.

Workers of Pouchen Vietnam gather at company premises on the afternoon of Jan. 7, 2022. Photo by VnExpress/Thai Ha
Nguyen Huu Nguyen, Chairman of the People’s Committee of Bien Hoa, said relevant agencies are trying to negotiate with the board of directors of Pouchen to increase the Tet bonus. "However, employees need to share the company’s difficulties, because Covid-19 has caused businesses to suspend operations for months," he said.
Nguyen Thi Nhu Y, head of the Dong Nai Provincial Labor Confederation, said the union was coordinating with authorities to resolve the situation. She noted that Pouchen’s Tet bonus was higher than the local industry average.
Pouchen Vietnam, part of Taiwan’s Pouchen Group, has one more factory in Dong Nai and six others in HCMC and the three southern provinces of Tien Giang, Tay Ninh and Ba Ria - Vung Tau for a total of 130,000 employees. The group is expected to spend more than VND1.2 trillion on Tet bonuses this year.
 

VivaVietnamm

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Thousands strike work after Nike supplier cuts Tet bonus
By Phuoc Tuan, Le Tuyet January 7, 2022 | 07:59 pm PT

Thousands of workers of Taiwanese-invested footwear maker Pouchen Vietnam strike work in the southern province of Dong Nai, January 7, 2022, to protest the company’s Tet bonus policy. Photo by VnExpress/Thai Ha
Thousands of workers of Taiwanese-invested footwear maker Pouchen Vietnam, a Nike contract manufacturer, struck work Friday, demanding the same Tet bonus as last year.
They refused to return to work after finishing their lunch to protest the company’s policy to pay less bonus than last year for the coming Tet (Lunar New Year) festival.
Tet, the most important Vietnamese festival, falls early February this year.
The workers stood on national road 1K in front of their factory’s entrance, causing traffic congestion for hours. The strike affected others and all 14,000 workers of the factory in Bien Hoa Town, southern Dong Nai Province, stopped working.
A mobile police team was dispatched to maintain order in the area.
A female worker said that the company had announced Thursday that employees who have worked for it a full year or more will be given Tet bonuses of 1-1.54 months’ salary – around VND5 million ($217) to nearly VND20 million.
The highest bonus in 2021 was 1.87 months’ salary, and in previous years, 2.2 months. "With this (coefficient), workers’ Tet bonus in 2022 will be lower than before," she added.
A Pouchen representative said that in 2021, the company had faced difficulties in production and business. When the fourth wave of Covid-19 broke out, the factory had to stop working from July 12 to Sept. 30, 2021. On Oct. 5, 2021, it resumed production, but at 60 percent capacity.
Due to the failure to fulfill the production plan, profits fell, so the Tet bonus, the biggest and most anticipated reward for workers, could not be the same as the previous year. The rep also said that under the collective labor agreement, the company would pay Tet bonus to employees based on its business performance.

Workers of Pouchen Vietnam gather at company premises on the afternoon of Jan. 7, 2022. Photo by VnExpress/Thai Ha

Nguyen Huu Nguyen, Chairman of the People’s Committee of Bien Hoa, said relevant agencies are trying to negotiate with the board of directors of Pouchen to increase the Tet bonus. "However, employees need to share the company’s difficulties, because Covid-19 has caused businesses to suspend operations for months," he said.
Nguyen Thi Nhu Y, head of the Dong Nai Provincial Labor Confederation, said the union was coordinating with authorities to resolve the situation. She noted that Pouchen’s Tet bonus was higher than the local industry average.
Pouchen Vietnam, part of Taiwan’s Pouchen Group, has one more factory in Dong Nai and six others in HCMC and the three southern provinces of Tien Giang, Tay Ninh and Ba Ria - Vung Tau for a total of 130,000 employees. The group is expected to spend more than VND1.2 trillion on Tet bonuses this year.
The workers have the right to do it
 

Chaplin

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Salary conflicts spark 28 workers strikes in two months
By Hong Chieu February 16, 2022 | 08:02 pm PT

Leaders of Viet Glory in Nghe An speak to workers on February 10, 2022. Photo by Phuong Linh

As many as 28 labor strikes were reported nationwide before and after the Lunar New Year holiday, mostly over salary and benefit conflicts.
Although the number of strikes was lower than the corresponding period in 2021, they reveal many major labor issues, said Phan Van Anh, deputy chairman of the Vietnam General Confederation of Labor, said at a meeting Wednesday.
The most frequent reason for workers to go on strike is disagreement over pay, annual pay rises and related issues, he said.
Some workers have also struck work because they were mistreated by employers who impose very stringent working conditions or provide low quality food, he added.
He cited the example of a six-day strike by nearly 5,000 employees of Taiwanese footwear maker Viet Glory in the central province of Nghe An. The workers wanted some strict rules be removed, like having to show up 10 minutes before work. They also said that their monthly salary of VND3.6 million ($158.45) was lower than the wages being paid by nearby factories.
Union representatives have had discussions with factories and asked them to bear short-term reductions in profits and increase workers’ salary because they have gone through two years of major Covid-19 impacts, Anh said.
He added that Vietnam’s Union Labor will soon propose an increase in regional minimum salary after two years keeping it unchanged.
In a major strike that happened last month, 16,000 workers of footwear maker Pouchen Vietnam stopped working for four days because their bonus was cut by 30 percent from the previous year.
On February 11, 5,300 employees of Vienergy in the northern province of Ninh Binh went on strike to demand more transparency in salary payment. They also insisted that foreign staff stop mistreating Vietnamese workers.
On February 14, over 2,000 workers of Cresyn Hanoi’s factory in the northern province of Bac Ninh went on strike seeking better salary and benefits.
 

FalconSlayers

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Salary conflicts spark 28 workers strikes in two months
By Hong Chieu February 16, 2022 | 08:02 pm PT

Leaders of Viet Glory in Nghe An speak to workers on February 10, 2022. Photo by Phuong Linh

As many as 28 labor strikes were reported nationwide before and after the Lunar New Year holiday, mostly over salary and benefit conflicts.
Although the number of strikes was lower than the corresponding period in 2021, they reveal many major labor issues, said Phan Van Anh, deputy chairman of the Vietnam General Confederation of Labor, said at a meeting Wednesday.
The most frequent reason for workers to go on strike is disagreement over pay, annual pay rises and related issues, he said.
Some workers have also struck work because they were mistreated by employers who impose very stringent working conditions or provide low quality food, he added.
He cited the example of a six-day strike by nearly 5,000 employees of Taiwanese footwear maker Viet Glory in the central province of Nghe An. The workers wanted some strict rules be removed, like having to show up 10 minutes before work. They also said that their monthly salary of VND3.6 million ($158.45) was lower than the wages being paid by nearby factories.
Union representatives have had discussions with factories and asked them to bear short-term reductions in profits and increase workers’ salary because they have gone through two years of major Covid-19 impacts, Anh said.
He added that Vietnam’s Union Labor will soon propose an increase in regional minimum salary after two years keeping it unchanged.
In a major strike that happened last month, 16,000 workers of footwear maker Pouchen Vietnam stopped working for four days because their bonus was cut by 30 percent from the previous year.
On February 11, 5,300 employees of Vienergy in the northern province of Ninh Binh went on strike to demand more transparency in salary payment. They also insisted that foreign staff stop mistreating Vietnamese workers.
On February 14, over 2,000 workers of Cresyn Hanoi’s factory in the northern province of Bac Ninh went on strike seeking better salary and benefits.
You a Wumao from CCP’s bot army?
 

smartnet

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No one care. People just see Nike quit CN to VN bcs CN is not a good place for manufacturing anymore due to trade war and high labor cost.

Iphone still stay in CN bcs CN is still a big market to Iphone, if CNese stop buying Iphone, then Apple will quit CN and move to VN, too :cool3:
If everything goes well in Vietnam, it will reach China's current level in 10 years. Vietnam's economic rival is India, not China.
Vietnam 10 years later also faces technological blockades.
 

smartnet

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It is hard to deny the fact that the fact that multinational corporations such as Nike and Adidas move to look for new production bases will cause China to lose many job opportunities,losing huge taxes , slow down technical innovation, new production technology as well as a healthy competitive environment. :lol:

------------------------------------------------
Nike and Adidas: From Made in China to Made in Vietnam


In recent days, domestic and international press and public opinion have been actively discussing the issue, Vietnam surpassed China to become the production base for Nike and Adidas products the most.
Worried about the trend of global shifting, especially when more and more world giants decide to shift production from China to Vietnam, Chinese scholars and online communities even reassure themselves that "don't be afraid", because this wave is only temporary, and the country of more than 1.4 billion people still has many other opportunities to "turn the tide", reasserting its position as the world's leading manufacturing factory. of their own, despite the Covid-19 pandemic or trade conflicts, competing head-to-head between the US and China.

As Sputnik stated in the previous report, in the early days of January 2022, many mainland Chinese and Taiwanese media outlets were all agitated and worried about China being "surpassed" by Vietnam, becoming a country. manufacturer of the most Nike and Adidas products.
China's De Nhat Tai Kinh (Yicai) in an article titled "Who is making the most Nike shoes?" affirmed that, in just 10 years, Vietnam has replaced China.
Before 2010, China gradually confidently rose to become the world's leading factory. This country is also the country that produces the most Nike products globally. But after a decade, the chessboard seems to have been reversed. China lost that proud position to Vietnam.

The situation with Adidas is similar, currently, 40% of footwear is produced in Vietnam. Notably, in 2013, Vietnam replaced China as the largest production base for Adidas shoes.
At that time, 35% of Adidas shoes were made in Vietnam, while China accounted for 31%. At the same time, the corresponding production rate in Vietnam has increased to 42%, China is only 15% in 2020, showing a clear shifting trend.
“If Chinese customers choose to buy a pair of Nike sports shoes at the store, it is very likely that the product they choose is made in Vietnam "Made in Vietnam", emphasized Yicai.

Chinese experts, media and netizens have reason to worry because the trend of global shift is getting stronger and stronger. It is the recent Covid-19 pandemic, the prolonged and fierce US-China trade war, which has reminded American companies and the world's leading multinational corporations that they cannot forever depend on Beijing and the global market. China's billion population.
The Chinese are also searching for answers, after all, what forces pushed Nike and Adidas from "Made in China" to "Made in Vietnam"?
"What has China lost in the increasingly strong global shift of this manufacturing industry?" asked De Nhat Tai Kinh.
"Do not panic"
As Sputnik mentioned, Nike's financial report for 2021 shows that Vietnam has replaced China as the largest manufacturer since 2010. Along with Indonesia, the world giant has no longer attached to it. China.
The world's largest sportswear brand, Nike does not have its own manufacturing plant. This group mainly hires manufacturing plants outside the US, whichever country has more open-door policies, open investment, favorable geographical location, potential market, and reasonable labor costs. more attractive to "eagles" like Nike.

China is worried when Vietnam becomes the "promised land" of Nike and Adidas

Over the years, Nike's proportion of factories in Vietnam has continuously increased. Statistics show that 50% of Nike shoe products are manufactured in Vietnam in the year and in 2021, this percentage will increase to 51%. At the same time, China's share of production has gradually decreased from 35% in 2006 to 21% in 2021.
Chinese experts admit that the gradual withdrawal of Nike, Adidas and international sports product brands from China will have a negative impact on the Chinese manufacturing industry. In general, the trend of global shifting when the big players leave China for Vietnam or neighboring countries is difficult to avoid, but this is still a loss for Beijing as well as the market of billions of people.

It is hard to deny the fact that the fact that multinational corporations like Nike and Adidas move to find new production bases will cause China to lose many job opportunities, huge taxes, slow down the economy. technical improvement, new production technology as well as a healthy competitive environment.


At the same time, according to Mr. An Quang Dung, from the Credit Management Committee of the China M&A Association, the transformation of production links of brands like Nike will have a significant negative impact on the manufacturing industry. Made in China and domestic brands.

“The gradual relocation of factories to Vietnam will have a huge negative effect on China. Especially, for the domestic footwear industry, it will also lose the opportunity to raise levels in technology, marketing, and management by competing with leading global corporations," worried Mr. An.
Mr. Cheng Weixiong, CEO of Shanghai Liangqi Brand Management Company, analyzed that this moving trend is inevitable and China should not be too alarmed.

"China's processing, manufacturing and manufacturing industry has undergone initial development steps and now needs to be upgraded to a new level," Mr. Cheng reassured.
Chinese experts also believe that the partial shift of the production line will not be an "earthquake" for the mainland's domestic footwear industry because the domestic production capacity can fully meet the demand. demand for domestic consumption as well as for export.
Why did the world giant choose Vietnam?

There are many reasons that can explain the story that for the first time Vietnam surpassed the world's leading manufacturing factory, China became the world's largest producer of Nike products.
The British Guardian newspaper said that Vietnam is emerging as one of Asia's leading important production centers, playing a large role in the global supply chain, especially in technology and apparel products. , footwear and sportswear.

Favorable geographical location, tax incentives, and cheap labor are strengths that help Vietnam compete in attracting FDI with China as well as becoming a "promising land" for investors.
The Chinese press said that, first of all, Vietnam has a preferential corporate income tax policy for manufacturing companies since January 2015. Accordingly, foreign investors are entitled to many related preferential policies, corporate income tax that meets a number of conditions is exempt for the first 4 years, 50% reduction of payable tax for the next 9 years and 10% for the next 15 years.
Along with that, Vietnam also has other preferential policies such as import tax exemption for goods used to create fixed assets, quarterly value-added tax declaration, and investment credit incentives. and exempted from land rent and water surface rent. Although these policies have since been changed in line with the actual situation, they are still to create maximum favorable conditions for investors.
The second strength of Vietnam is abundant human resources and cheap labor costs. The De Nhat Tai Kinh newspaper even interviewed a Vietnamese worker, emphasizing that working at Nike's factory is much higher and more stable than farming, and the working environment is also better. Of course, foreign giants also have the advantage, labor costs in Vietnam are lower than in China, so this is a wise choice.
General Director of Shanghai Liangqi Brand Management Company Cheng Weixiong noted that multinational corporations consider very carefully when deciding to move production lines, from external factors such as political fluctuations. (Strategic rivalry between the US and China), to export quotas, tariffs, exchange rates, production capacity, delivery terms, labor costs, geographical location...
"Nike is a global brand, so you can't put your eggs in one basket," said Cheng, explaining the mentality of global corporations that can't be too dependent on China.


According to information from an FDI enterprise specializing in manufacturing and processing shoes for many major shoe brands in the world, including Adidas and Nike, shared with Tuoi Tre, there are two reasons why production orders are Leather and footwear outsourcing hahttps://vn.sputniknews.com/20220110/viet-nam-thanh-trung-tam-san-xuat-moi-cua-the-gioi-trung-quoc-co-ly-do-de-lo-so-13165201.html
China and Vietnam are at different stages of economic development. Local Chinese brands, such as Anta Sports, have surpassed Adidas and Nike in revenue in China.
 

no smoking

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If everything goes well in Vietnam, it will reach China's current level in 10 years. Vietnam's economic rival is India, not China.
Vietnam 10 years later also faces technological blockades.
That is purely wishful thinking.
1. With only 97.34 million population, Vietnam will never reach Chinese level of economic scale and products range. If you look at Vietnam today's industrial input, you will find that they are heavily relying on foreign suppliers for raw materials to key components and technologies. They just simply don't have enough workers to build the self-reliance.

2. They simply don't have a strong R&D base for a independent tech development. Remember, in 1980s, Chinese already have produced from nuclear reactors to jet planes and nuclear submarines by herself. These products were not good enough to compete with world class producers, but it tells us that they already have a full range R&D department to cover everything. Vietnam, however, is another story. A lots of key industrial sub-departments don't exist in this country at all. They have to start from scratch today. This not only requires money and talent, but also TIME. More importantly, they will need a large market to absorb the craps produced by these new department for a long time before they catch up.

All above, when Vietnam signed CTPPT and RECP, they already give up this road.
 

VivaVietnamm

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China and Vietnam are at different stages of economic development. Local Chinese brands, such as Anta Sports, have surpassed Adidas and Nike in revenue in China.
Yeah, but you only can sell Anta shoes in CN's market and some unimportant markets that buy cheap shoes.

Selling more Anta shoes also doesn't create more good jobs for Cnese as No one will pay 1,000USd/ month for CN workers (as CN GDP per capita is $12,000 )to make cheap Anta shoes.
 

VivaVietnamm

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That is purely wishful thinking.
1. With only 97.34 million population, Vietnam will never reach Chinese level of economic scale and products range. If you look at Vietnam today's industrial input, you will find that they are heavily relying on foreign suppliers for raw materials to key components and technologies. They just simply don't have enough workers to build the self-reliance.

2. They simply don't have a strong R&D base for a independent tech development. Remember, in 1980s, Chinese already have produced from nuclear reactors to jet planes and nuclear submarines by herself. These products were not good enough to compete with world class producers, but it tells us that they already have a full range R&D department to cover everything. Vietnam, however, is another story. A lots of key industrial sub-departments don't exist in this country at all. They have to start from scratch today. This not only requires money and talent, but also TIME. More importantly, they will need a large market to absorb the craps produced by these new department for a long time before they catch up.

All above, when Vietnam signed CTPPT and RECP, they already give up this road.
And we just made some good EV cars (VF6 to VF9) to sell in EU-US. Keep masturbating that VN can't make anything , no one care

in 1980s, China had Zero plan to build a car factory in US like VN now bcs CN's tech suck.
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While there is no set date for VinFast to start operations in the U.S., the company expects to start selling these two vehicles by the end of 2022, while the VF 6 and VF 7 will be commercialized in 2023. VinFast has also announced plans to build a U.S. factory to manufacture batteries (though its location isn't set yet).
So, what are the two products VinFast will enter the U.S. market with?
VF 8
VinFast US Models 11
VinFast US Models 11

SEE ALL 10 PHOTOS
Starting at $41,000, the VF 8 is a five-passenger midsize SUV that's about the size of a Ford Edge. Its styling is sharp, with a wing-like running light that cuts across the nose giving the VF 8 a visually wider stance. Its grille-less front quickly gives away that it's an EV, while its split headlights lend it an upscale look.

Details are very scarce, but VinFast says it will deliver 402 hp and 472 lb-ft of torque with a 316-mile range. That last number is based on the European Emission Test Cycle, which means the EPA will rank it well below that. Still, that should be competitive with today's electric crossovers, should the battery deliver. Acceleration to 60 mph will be in the mid-five second range, according to the automaker. No word on the battery or electric motor specs or charging times.
VF 9
VinFast US Models 1
VinFast US Models 1

SEE ALL 10 PHOTOS
The full-size SUV can transport between six and seven passengers and shares the same powertrain numbers as the VF 8, except it can travel 422 miles and it can get to 60 mph in approximately 6.5 seconds—a hint that it probably has a bigger battery.
Like many full-size SUVs, the VF 9 wears boxier styling, but we're particularly thrown off by its C-pillar, as it tries to connect the windows instead of setting them apart. Like the VF 8, the front of the VF 9 has that wing-like daytime running lamp that lights up to give the SUV a futuristic look, but unlike its younger sibling, its headlights are one piece. The air vents on the front fascia help with aerodynamics and cool down the brakes.
Both SUVs share a clean interior, with a large screen on the dashboard similar to other EV startups like Tesla or Rivian, and there is no other screen or instrument cluster is in front of the driver. The cars on display at CES were locked, so we can't comment on the cabins' material quality or interior space. The jet-inspired push-button shifter is well integrated into the center console.
There's very little info on the VF 6 and VF 7. The VF 6 is about the size of a Honda HR-V, while the VF 7 is about the size of a Toyota RAV4 compact crossover. VinFast only revealed their styling without talking about their range, powertrains or charging capabilities.
Although former GM designer David Lyon has been supporting VinFast since 2017, the startup partnered with Pininfarina design studio to craft its models. And, well, we're happy with the way they came out.
There are still many questions up in the air. VinFast is talking about a battery lease program where the owner would have to pay a monthly fee with two plans available. A "flexible" plan would allow the owner to drive 300 miles per month minimum with additional costs that cover any milage above. A "fixed" plan would apply for unlimited range. VinFast says the monthly cost of driving one of their EVs is similar to the gasoline costs in each market, though it's still unclear what that exactly means. With this program, however, the company will cover all expenses on battery maintenance and will replace the owner's used battery for free when charging and discharging capacities fall below 70 percent.
VinFast US Models 2
VinFast US Models 2

SEE ALL 10 PHOTOS
How will VinFast sell cars in the U.S? The company plans to start setting up a network of dealers starting in California later this year. When will it start operations? What are the details underneath the SUVs? Those are all questions still unanswered, though the company is excited to enter the market at some point this year. To get U.S. customers hooked, VinFast is introducing a voucher program to go along the reservations. With a $200 deposit, the customer can get a $3,000 voucher for the VF 8 and a $5,000 voucher for the VF 9, along with an NFT and blockchain technology.

We hope to have more answers soon, but in the meantime, you might want to consider getting into the voucher program. The $200 are refundable should you change your mind.

xe oto dien vinfast vf9 2022 2023 giaxehoi vn 17



 
Last edited:

VivaVietnamm

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If everything goes well in Vietnam, it will reach China's current level in 10 years. Vietnam's economic rival is India, not China.
Vietnam 10 years later also faces technological blockades.
If they slap technological blockades to VN, then we will block SCS (east VN sea), to let their economy collapse :cool1:

CN is weak nation and can be bullied easily by the West, but not VN.
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b-43.jpg


eia-south-china-sea-global-oil.jpg
 

smartnet

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Yeah, but you only can sell Anta shoes in CN's market and some unimportant markets that buy cheap shoes.

Selling more Anta shoes also doesn't create more good jobs for Cnese as No one will pay 1,000USd/ month for CN workers (as CN GDP per capita is $12,000 )to make cheap Anta shoes.
Vietnam's per capita GDP is only $2,800, what capital do you have to look down on China.
ARCTERYX is already a sub-brand of Anta Sports.
d4fea31ce60799713e3bc281bec3a6d.png
 

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