Recently, a company focusing on foreign trade placed an order with a total amount of nearly 200 million US dollars (approximately RMB 1.35 billion); and old and stable customers have also canceled their purchase plans due to the epidemic.
According to relevant news reports: In a town in Guangzhou, there are eight to nine thousand leather goods manufacturing companies concentrated in the town. An epidemic caused a sharp drop in orders, and the inventory in the past became a burden stranded in the warehouse. Some local companies were originally There were 1,500 workers, but due to a sharp drop in orders, nearly 87% of the staff had to be laid off, leaving only 200 people.
Great transfer of capital
Although many technology companies have not completely withdrawn from the Chinese market, they have taken the initiative to transfer some production parts to other countries, including Vietnam.
Many textile, clothing and shoe production groups and companies are also rearranging production chains to reduce over-reliance on a single market and the impact of epidemic outbreaks and other risks.
According to calculations by many companies, the rearrangement of the supply chain will reduce China’s share in the supply chain to 45-50%, while shifting 15-20% of the supply chain to Vietnam, India, the Philippines, Myanmar, and Bangladesh. and Cambodia this way.
The Vietnam Textile and Apparel Association (Vitas) predicts that from now to 2025, the transfer investment funds flowing into Vietnam from the textile and apparel industry will increase sharply, especially after the new crown pneumonia epidemic is controlled. It is worth noting that this transfer comes not only from Asian countries, but also from European countries such as Italy, Germany and Russia.
Vietnam: competing with many countries for supply chains
According to experts, despite its many advantages, Vietnam also faces fierce competition from other emerging economies in attracting investment due to the shifting trend of new supply chains.
For example, compared to India, Vietnam has more advantages in terms of economic and political stability, participation in many free trade agreements, and basic conditions for industrial zones, while India has many advantages in attracting high-tech capital flows, such as labor Abundant resources, the development of information technology and the Internet, and a huge consumer market.
Similarly, countries in the same region, such as Thailand, Indonesia or Malaysia, also have their own advantages in attracting foreign investment.
Although Vietnam has formulated a number of investment policies, such as encouraging investment in the construction of industrial parks, processing zones, and focusing on the development of supporting industries, actual practice shows that there are many shortcomings in the implementation of these policies and the results are not satisfactory.
For labor-intensive industries such as textiles, clothing, and footwear, in order to reduce the risk of falling behind in the fourth industrial revolution and welcome the inflow of investment funds from developed countries, Vietnam will take measures to strengthen automation and improve labor skills. Upgrading the direction to produce high-end products with higher added value.
This is really worthy of all our domestic enterprises to be more vigilant! Don’t underestimate him!
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