作者： admin

Influence of made in Vietnam on made in China

The rise of manufacturing in Vietnam has clearly hit some Chinese industries and companies that rely solely on low labor costs. In 2006, 700 Taiwanese businesses in dongguan were forced to close due to lack of labor, accounting for about one-half of the local Taiwanese businesses. Most of the closed factories are labor-intensive textile and toy OEM factories. Meanwhile, Taiwan invested China Mainland $3.59 billion in the first eight months of 2006, down 18.3% from the same period in 2005. The pace of foreign investment in China has slowed as well. The commerce ministry said foreign direct investment in the january-august period of 2006 was $37.99 billion, down 3.02 percent from the same period a year earlier and the first decline since 1999.

But the real threat goes far beyond manufacturing. Vietnam, which has the advantage of being a late mover, is clearly building its own new future. For example, some people thought that Vietnam could not afford high-end coffee, but soon the involvement of multinational companies brought Vietnam not only abundant capital, but also advanced management. Vietnam has shaken off a history of no high-end coffee, and the high value-added value of high-end brands has earned the country a higher return on investment. In the IT sector, high-tech investment and manufacturing transfers have clearly eaten into the high-end share of Chinese factories. Made in Vietnam has begun to make efforts to “smart”, perhaps, the future can be strong rise of Vietnam’s high-tech is the real tough role.

Influence of made in Vietnam on made in China

In fact, the manufacturing has been at the bottom of the “smiling curve”, Chinese enterprises must accelerate its industrial upgrade, from rubber to coffee, from Mickey Mouse to chip, Vietnam manufacturing’s biggest significance maybe let China alert, original labor price, policy and geographical advantages, are actually weak, unless our country and the enterprise can more quickly to “smart”.

Moreover, the shift of manufacturing to Vietnam is no bad thing for China. In the face of cost pressure, the coastal manufacturing industry is facing the task of transformation and upgrading. The transformation and upgrading does not mean that the manufacturing sector is rapidly disappearing in the coastal areas. It is more likely that the manufacturing industry will develop towards a higher value-added and more refined level within the traditional characteristic industrial areas in the coastal areas.

“Made in Vietnam” is a complement to “made in China”, but it cannot replace “made in China”. Because Vietnam, with a population of over 80 million, cannot support that much production capacity. However, the global dominance of “made in China” over the past decade will change. With the rise of global trade protectionism against “made in China” and the appreciation of the renminbi, the advantage of “made in China” will diminish, and the breakthrough of trade barriers such as tariffs will inevitably lead to a global pattern of “diversified” manufacturing. However, ‘made in China’ still has irreplaceable advantages. First, China has a complete industrial chain, second, it has a skilled labor force, and third, China has a huge domestic consumer market.

The impact of the emerging market in Vietnam on China is an inevitable rule of international economic development and a necessary step for China to move towards the medium-high end. If China, like Vietnam, continues to grow at the middle and low end, it will not be allowed to do so because of the environment and resources, and because it will be at the lower end of the industrial chain. At this stage, China’s only task is to develop itself, maintain social stability and make the surrounding environment stable, especially the geopolitical relationship with Vietnam stable.

Third party inspection function

Third party inspection usually refers to the inspection services provided by third party companies or individuals between the buyer and the seller. Generally, it means that foreign customers purchase goods in Chinese factories, but they cannot come to China to inspect their goods in person. Therefore, they entrust third-party companies or individuals to inspect the goods and judge whether the goods meet their purchase requirements through the reports provided by the third party.

· Check whether the goods supplied by the supplier conform to the quality requirements stipulated by national laws and regulations or relevant national standards;

·Timely avoid delivery delays and product defects, and take emergency and remedial measures as soon as possible;

· Reduce or avoid consumer complaints, returns and exchanges, and loss of business reputation caused by receipt of inferior products;

· Reduce the risk of compensation and administrative penalty caused by the sale of inferior products;

· Verify the quality and quantity of the goods to avoid contract disputes;

· Compare and select the best suppliers and obtain relevant information and Suggestions;

·Reduce high management and labor costs for monitoring and testing products

Advantages of China’s Manufacturing Industry

Made in China has only a few decades of history since the 1980s. Short time, simple equipment and rough ability are the epitome of our development. After decades, made in China has established its own internal circulation advantage: manufacturing advantage of industrial chain model. From raw materials to finished products, made in China has fully realized the whole chain support in China; even in regional intensive mode.

Made in China has also experienced the transformation from rough processing to today’s precision processing. With the value of capital, made in China is also transforming from small-scale high energy consumption and high pollution to intensive low energy consumption and low pollution. From the scattered manufacturing industry with the family as the unit and the township as the collective, to the industrialized and professional assembly line.

Foxconn has one million employees in China; the scale of the single plant has 200,000 employees. Chinese enterprises are advanced in the management of employees’ organizational ability. Everyday millions of employees work in mature centralized industrial parks in Suzhou, Dongguan and other regions that has become the norm.

Made in China are made for the world, such a manufacturing capacity has never been seen in history. The British machine spinning that began with the industrial revolution was also produced in different regions. The realization of the whole supply chain from raw materials to finished products in one system is a huge advantage of made in China; the basis of this chain is a mature team of skilled workers. No other country in China has such a mature education system and workforce.

Today, facing the upgrading of global manufacturing industry, manufacturing in China is also upgrading rapidly. We are becoming a world manufacturing power and the first echelon of manufacturing industry. Digital enterprises and smart
enterprises start from a certain area, and a single spark can start a prairie fire.