China can be called the world's manufacturing power, is the international manufacturing center, made in China is very famous in the world, it can be said that the products manufactured in China are exported to overseas, has entered the daily life of many people.
Nowadays, China's manufacturing is developing rapidly, from relying on labor-intensive industries to high-end manufacturing transformation, in some precision manufacturing and heavy manufacturing is developing very rapidly. However, due to the large scale of China's manufacturing industry chain, some unimportant areas have not yet had time to transform and develop.
Labor-intensive industries have a very high demand for labor, and labor costs basically determine profit margins and revenues. Therefore, many labor-intensive industries will move to places with lower labor costs, such as the textile industry and the assembly industry.
However, when Vietnam was still immersed in the "sweet dream" of the next world manufacturing center, it suddenly found that Vietnam's prosperous economic phenomenon was nothing more than a "illusory dream", and now the dream is beginning to wake up. According to relevant data, in the past ten months, Vietnam's total exports have increased by **9 year-on-year6%, the loss exceeded 420 billion yuan, the textile industry for three consecutive quarters **80%, more than 42,900 textile factories caused, 1.05 million people unemployed.
At this moment, not only Vietnam began to be dumbfounded, but even those foreign-funded enterprises such as Nike, Adi, Apple, and Samsung that entered India to invest and build factories began to be dumbfounded. I thought it was a rapidly growing low-cost labor market, but when I went in, I found that there was basically nothing but low-cost labor.
In terms of salary, the salary of Vietnamese employees is about 300 US dollars a month, which is equivalent to about 2,200 yuan. Although it is indeed lower than in China, the magnitude is very limited. The most important thing is that, although on the surface, Vietnam's labor costs, factory construction costs, and operating costs have been reduced, but on the whole, this is not the case.
First of all, the quality of the labor force of Vietnamese employees is low, and the level of education is not high, and many Vietnamese employees are still unable to meet the standard of employment after three months of training. As a result, spending on staff training has grown rapidly, leaving little advantage in terms of labor costs.
Secondly, Vietnam is completely incomparable with China in terms of infrastructure construction, which also leads to a lot of increase in factory construction costs and operating costs. You must know that China is known as the "infrastructure madman" in the world, including water, electricity, transportation, and many other aspects, China is very good. However, this is not the case in Vietnam, where rail transport is extremely inefficient due to age. In terms of water and electricity, it is often necessary to overhaul due to line problems, resulting in water and power outages.
Not only that, Vietnam's development in related industrial chains is far inferior to Chinese mainland. Taking mobile phone assembly OEM as an example, if the relevant parts industry chain can also be placed near the assembly OEM, it can not only reduce import tariffs, etc., but also effectively reduce transportation costs and time.
Why does Apple put a large number of iPhone assembly foundries in Chinese mainland?In addition to China's foundry companies with outstanding production capacity such as Foxconn and Lixun Precision, it is also closely related to the number of Chinese manufacturers in Apple's ** chain, which accounts for more than 26%.
Vietnam is much behind in the development of the relevant ** chain, basically there are no mobile phone parts manufacturers in Vietnam, and the equipment in textiles and OEM also needs to be met by imports. This leads to the fact that if manufacturers such as Samsung and Apple place mobile phone assembly foundries in Vietnam, they need to face difficulties in transporting parts to the past, which will naturally lead to an increase in time costs and capital costs, which will have a great impact on revenue and net profit.
Under the influence of many factors, the products produced by well-known companies such as Samsung and Nike in Vietnam have been unanimously "badly reviewed", and the return rate and the need for after-sales service have also increased rapidly, which has also affected the brand image. As a result, many foreign-funded companies have now withdrawn from Vietnam.
Vietnam has always believed that the rise of China's manufacturing industry depends on the transfer of the industrial chain and the demographic dividend, and Vietnam also has these advantages, so it is not difficult to become the next world factory. Therefore, under various negative circumstances, Vietnam, which enjoys China's aid to electricity, even said that it was China that snatched their orders.
But in fact, the rapid development of China's manufacturing industry also depends on complete infrastructure construction, huge market demand, complete industrial chain scale and excellent and perfect industrial system. Vietnam's construction in these aspects can be said to be far from China's, even with the support of a large number of American and Western companies to transfer industrial chains, it cannot replace Chinese manufacturing.
Nowadays, China's manufacturing is no longer satisfied with low-tech, low-value-added labor-intensive industries, and has gradually begun to transform and upgrade from low-end manufacturing industries such as electronic assembly foundry and garment production. It has developed rapidly in many heavy manufacturing and high-tech manufacturing industries such as hand-torn steel, shield machines, precision machine tools, large aircraft, high-speed rail technology, etc., and has also developed rapidly in emerging fields such as smart industry and the Internet of Things.
Postscript:
Vietnam wants to rely on cheap labor to undertake the labor-intensive industries transferred from China, and even become the next "world factory" after China, but Vietnam's low labor quality, imperfect infrastructure construction and other factors have led to a large number of foreign-funded enterprises to withdraw from Vietnam, some foreign media said: Vietnam is time to wake up from the dream of "the next manufacturing power".
I'm a tech creator