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While the domestic textile industry is facing a struggling situation, Southeast Asian countries represented by Vietnam are rapidly grabbing the textile market.
With the rapid increase in domestic production costs and labor costs, the textile industry is shifting to Southeast Asian countries in large quantities. Vietnam is one of the countries that undertakes the transfer of China's textile industry. At present, Vietnam has become the world's third largest textile exporter, after China and India.
The textile industry in India and Vietnam has always been concentrated in garment processing, but Vietnam has great ambitions. On April 24, Vietnamese Deputy Prime Minister Zheng Dingyong signed the government’s decision No. 18/2019/QĐ-TTg to ban the use of second-hand machinery, equipment and production line technology with a technology life of 10 years or more, which will be on June 15, 2019. Effective.
This means that Vietnam will no longer be satisfied with the production market of the apparel sector and will directly enter the fabric and raw materials market. It can be briefly summarized as follows: If all the textile enterprises that are put into production in Vietnam want to enjoy the tariff preference of Vietnam, the raw materials of the raw materials such as yarns and fabric accessories used in textiles must be in Vietnam (the proportion of Vietnam in origin is at least 90%). .
As a result, all textile companies that have started production in Vietnam have to reduce their dependence on Chinese fabrics and raw materials supply, and instead increase investment in the Vietnamese textile industry and improve the industrial chain. This is a huge challenge for the Chinese textile industry.
According to the latest published data, Vietnam’s exports of major commodities to the United States in April 2019 increased almost the same time year-on-year:
Furniture and lighting equipment increased by 42.32% year-on-year;
Fashion goods and accessories increased by 15.99% year-on-year;
Baggage and suitcases increased by 48.23% year-on-year;
Plastic and rubber products increased by 99.66% year-on-year;
Electronic products increased by 177.52% year-on-year;
Household appliances increased by 110.02% year-on-year;
Machinery and parts increased by 413.02% year-on-year;
Textile and apparel increased by 132.11% year-on-year;
Metal products 76.94%;
Porcelain and ceramics increased by 69.99% year-on-year;
Auto parts increased by 49.71% year-on-year;
Building materials increased by 16.50% year-on-year.
Seeing this data, a cliché has once again been raised: Will Vietnamese manufacturing take advantage of Chinese manufacturing?
Given the following issues, Vietnamese manufacturing will be difficult to pick up in China for a long time:
1. The whole industry chain is not yet available, and many supporting materials and machinery and equipment need to be imported from China or other countries;
2, infrastructure, roads and railways are very backward, lacking deep water and good port, long cargo cycle;
3. Labor quality. A company that once set up a representative office in Vietnam, the "engineer" who was finally recruited can only screw the screws. It is really a problem, or it needs Chinese engineers to fly over and solve it;
4. The business environment is poor, local government policies are not flexible enough, and the overall quality and education level of employees are low;
5. Southeast Asia's wages are growing rapidly, and the wages of general workers are calculated on an hourly basis. Excluding the overtime factor has already exceeded the wages of Chinese workers. Assuming that China's wages are not growing, then five years later, labor costs will be China is almost the same.
Obviously, the Vietnamese government is aware of these problems and is trying to solve them step by step. For example, “there is no comprehensive industrial chain, and many supporting materials and machinery and equipment need to be imported from China or other countries.” In order to prevent Vietnam from relying excessively on machinery production equipment in other countries, the Vietnamese government has recently issued a “new regulation”:
According to Vietnam’s “Vietnam News”, on June 15th, Vietnam banned the use of second-hand machinery, equipment and production line technology with technology years of use of 10 years or more.
According to the decision, only second-hand machinery, equipment and production line technology directly produced in Vietnam can enter the country, and the relevant entry equipment must comply with the Vietnam National Technical Regulations (QCVN), Vietnam Standard (TCVN) or G7 countries and South Korea in safety, Standards such as energy conservation and environmental protection. Imported second-hand production line technology must have a design capacity of at least 85%, and the consumption of materials, fuel and energy should not exceed 15% of the design consumption.
The Ministry of Science and Technology of Vietnam will be responsible for publishing a list of used machinery, equipment and production lines that have been banned in other countries.
The background of the new regulations is: Earlier, the Vietnam Customs Administration data showed that from January to November 2018, Vietnam imported more than 210.3 billion yuan of mechanical equipment, of which nearly 40% came from China. In other words, Vietnam imports about 7.6 billion yuan worth of machinery and equipment from China every month.
According to incomplete statistics, Vietnam currently imports nearly 80% of agricultural machinery imported from Japan, China, South Korea, Thailand and Taiwan. Among them, agricultural machinery imported from China accounts for 60%, and imports from Japan and South Korea account for 40%. The agricultural machinery products produced in Vietnam only account for 15-20%.
From January to November 2018, Vietnam’s imports of machinery and equipment from China increased by 9.5% year-on-year, while none of the top five source countries achieved similar growth. Worried that such a situation would make Vietnam too dependent on ready-made imported equipment, rather than focusing on its own research and development capabilities, making Vietnam a concentration of backward technology, the Vietnamese government has taken measures to restrict the import of used machinery and equipment.
Trying to be self-reliant, not relying too much on the machinery and equipment of other countries, the trade war is "fishing and profiting", and the import of the United States has grown substantially. In the face of such a leaping neighbor, what do you think?
Xuzhou Heping Chemical Fiber Co., Ltd., located in Xuzhou Huaihai Economic Development Zone, provides customers with high-quality and high-quality polypropylene high-strength yarns with the production technology, strict quality control system and high-quality after-sales service. The product performance is good and the price is right, and can support the customized sample. The main products of peaceful production are: polypropylene industrial silk, split film industrial yarn, high-strength polypropylene network wire, polypropylene high-strength wire, polypropylene high-strength wire and other polypropylene products.