Guangdong Shoe Industry Transfer Boom Quickly Subsided.

To suspend industrial transfer and observe the evolution of the situation, for the Pearl River Delta dominated by labor-intensive industries, Vietnam was once an ideal industrial transfer. Today, Vietnam's financial turmoil is constantly evolving, attracting increasing attention from Guangdong's economic circles. The industrial transfer boom is rapidly subsiding. Guo Weiwen, the head of Wanbang shoe industry, was once the Secretary General of Guangdong's "European Union's anti-dumping alliance against China's leather shoes products". Today, the factories run by his company in India are already open. Guo Weiwen told reporters that India was only the first station to transfer their production lines to Southeast Asia. The labor cost of Vietnam, which is only 40% of China, had hoped to become the second stop. In the past two years, he had focused on Vietnam, and planned to set up factories in the near future, but the financial turmoil broke the plan. There are different opinions about the intensity and lethality of Vietnam's financial turmoil. For the bubble burst after the economic overheating and imbalance, although many scholars claimed that their radiation coverage was limited, and even Vietnamese economists did not admit that there had been a financial crisis, Guo Weiwen decided not to consider Vietnam's investment for the time being, because he feared that the runaway inflation would trigger a strike wave. Reporters interviewed found that Guo Weiwen's idea was quite representative in the Pearl River Delta labor-intensive enterprises that were interested in Vietnam. Many enterprises have suspended their footsteps and watched the evolution of Vietnam's situation. "In the early part of last year, the enterprises in the Pearl River Delta began to hesitate to transfer Vietnam." Li Youhuan, a researcher at the Guangdong Academy of Social Sciences, told reporters that since 2006, the property market in Vietnam has rapidly "fever", leading to the soaring cost of industrial transfer to Vietnam. According to his observation, from the second half of 2006 to the beginning of 2007, the labour intensive industries in the Pearl River Delta did trigger a wave of Vietnam's shift, mainly from Taiwan funded enterprises and Hong Kong funded enterprises. However, the boom had dissipated rapidly in the second half of last year. It is not a good time to invest in Vietnam. Will a sharp mandatory adjustment lead Vietnam to squeeze bubbles quickly and revitalate industrial capital? In this regard, the director of the Finance Department of Zhongshan University believes that the violent upheaval of the stock market in the stock market may not last long, but the most difficult thing is inflation. Li Youhuan believes that Vietnam's financial turmoil will evolve into a crisis? Is it expanding into an economic crisis? And even spread to Southeast Asia? No one can tell clearly at the moment, so it's best to move less and watch more. He said frankly that in the short term, the price of Vietnam's housing prices has been reduced, and the risk of huge bad debts has been greatly improved. "Originally some shoe factories are mainly optimistic about the export of Vietnamese made shoes to the EU, which is not restricted. However, after this exercise was seen, Vietnamese shoes were also charged with high anti-dumping duties, and the interest of enterprises in transferring Vietnam was reduced." Chen Jiawen, honorary president of Guangdong Footwear Manufacturers Association, told reporters that Vietnam's footwear industry is much worse than the Pearl River Delta, whether it is technology or matching. Ding Li, director of the scientific research division of Guangdong Academy of Social Sciences, said: "now Guangdong enterprises should be more cautious about transferring Vietnam." Guo Weiwen, who is almost about to start in Vietnam, is now turning to a slightly higher labor cost than Vietnam (about 50% of China), but the economy will not go up and down in Indonesia. According to a survey, more than 200 Chinese textile enterprises have set up factories in Vietnam. Ling Fang, the deputy general manager of the Guangdong textiles import and export Limited by Share Ltd, who wants to enter Vietnam, told reporters that the most popular way of textile and clothing processing at present is to distribute orders to Southeast Asia, so as to reduce costs. Vietnam's financial turmoil has caused the Vietnamese shield to depreciate substantially. In order to avoid risks, we should try not to entrust partners to purchase raw materials overseas.