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Shoemaking industry "China production + Vietnam manufacture" into a new supply mode?
From: Dongguan Chengtai Industrial Co.,Ltd Post date: 2018-09-10


Fears of a trade war have largely led to plans to move Chinese factories, according to a survey of 30 leading us fashion brands. Many companies, including Steven Madden, Tapestry, and Vera Bradley, currently have similar ideas.

Foreign media reported recently:
President trump on July 6 slapped tariffs on $34 billion of Chinese imports, implementing the first step of his own 50 billion tariff plan. China responded forcefully by immediately raising taxes on the same amount of American goods.
But the escalating trade war between China and the United States is leading some companies to consider moving factories out of China.
Officials at some factories in guangdong said they were planning to produce outside China, given the uncertainty over tariffs and trade measures between China and the us.

Workers make women's shoes at a factory in southern Vietnam

Angelo Cheung, head of Japan's Aoyagi in Hong Kong, told the financial times in an interview that some orders to the us market had been cancelled because of the risk of a trade war.
Mr Cheung said his factory was considering other options, including moving part of its supply chain to Vietnam.

The Vietnam factory of China's top brand TCL corp

Southeast Asia, such as Vietnam and Cambodia, has an unprecedented appeal for foreign companies with factories in China as tariffs on Chinese imports into the United States rise.
Many companies, including Steven Madden, Tapestry, and Vera Bradley, currently have similar ideas.
"" this trend will develop gradually as products made in China will become more expensive." " So says Larry Sloven, President of Capstone's Hong Kong office.
In recent years, with China's industrial upgrading from low-end manufacturing to high-tech industries, many manufacturers are facing pressure.
And the tariff war is certainly a blow to all producers. Larry Sloven says some manufacturers are worried that the next tariff will be a killer.
Thailand, Vietnam, Cambodia and Malaysia are potential alternative markets.
The Fashion Industry Benchmarking Study, released in July, said that although all of the companies surveyed were now supplying from China, 67 per cent said they planned to reduce supply from the country within two years. In the 2017 survey, only 46 percent of businesses had plans.
Of these, 70 percent of businesses believe that protectionist trade policies in the United States will be one of their top five challenges.
This April. A survey of 30 leading us fashion brands, retailers, importers and wholesalers also shows that fears of a trade war have largely led to their plans to move Chinese factories.
With the change of business environment and trade policy, some enterprises are planning to carry out multi-regional production. "Made in China + made in Vietnam" has become a mode of supply for more and more foreign enterprises.
For now, Vietnam, China, Mexico and the Dominican republic, the members of the central American free trade agreement (cafta-dr), are the best production bases with the biggest production advantages.

(来源:百家号)

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