Vietnam has always been the main OEM processing area in Europe and the United States, such as sports brands such as Nike, Adidas and Under Armour, as well as mobile phone brands such as Apple and Samsung. The biggest reason why Vietnam can become a foundry processing center is because the country's labor wage level is low, so European and American countries decided to constantly "squeeze" Vietnam. However, after the outbreak of the epidemic in Vietnam, a large number of workers have resigned, which has also affected the Vietnamese production line.
What is more serious is that after a large number of production lines in Vietnam have been stopped, orders in Europe and the United States have also been out of stock, and even cannot be delivered on schedule. Therefore, European and American customers can only return to China to place orders, and these customers will place orders in Vietnam because of the low cost of processing in Vietnam. European and American customers who returned to China found that after the price of raw materials rose, the price of transporting goods from China to Vietnam soared from about $400 to about $4,000. Therefore, European and American enterprises cannot transport raw materials from China to Vietnam as before, and then transport them to Europe and the United States after processing. As a result, Vietnam allowed workers to return to the factory by increasing wages, but found that the original European and American customers actually "relied" on China and did not leave, that is to say, European and American customers did not go back in China.
Because European and American companies are not fools, knowing that according to the previous way of operation, their costs will further increase, why continue to do so? It is better to process it directly in the Chinese factory and then transfer it to Europe and the United States for sale. In this regard, the manager of a garment processing plant in China also revealed multiple factors, but also said the current situation of Vietnam's heart, the current orders signed between Chinese factories and Europe and the United States, basically all delivered, and even many factories have completed this year's European and American orders in advance. This move also makes European and American enterprises realize that only Chinese enterprises can ensure on-time delivery, that is to say, China's industrial chain is quite stable, compared with cost savings, European and American customers naturally pay more attention to stable output. It is not difficult to see that it is precisely because China is the first country to carry out epidemic control, and it is also the first country to fully resume work after the epidemic, or the existence that European and American countries cannot ignore. Because only the factory in China can ensure that European and American customers can arrive on time, basically there will be no delays. However, due to various reasons, the production line capacity of Chinese factories has also been controlled to a certain extent, and the price of foreign exports has also been raised.
This means that European and American companies want to continue to stay in China and cooperate with Chinese factories, not only to bear the high freight freight, but also to bear the cost of commodity price increases. Therefore, European and American companies can be described as "rat drilling bellows", as for which country factory to choose, it is still uncertain. At least until next year's new orders arrive, before you can decide who to continue working with? It's just that the current Vietnamese factory is equivalent to being mounted on a beam, not only paying wages to workers every day, but also having to bear the utility bills.
Although the daily expense is not large, if the order is not received for a long time, the Vietnamese factory will not be able to eat. And this move has also made more and more European and American companies come up with the idea of transferring production lines. After all, in the eyes of European and American companies, Vietnamese factories are no longer reliable, so they have to re-choose partners. The Chinese factory seems to have a great advantage, and it is not ruled out that in the end, European and American companies will still hand over the order to the Chinese factory to complete. After all, stability is far more important than anything else, but this truth is like a thunderbolt on a sunny day for a Vietnamese factory.
(Text/Hua Qiang)