in recent years, by increasing labor cost, a trade war spread and environmental protection high pressure policy, chinese-lots of enterprises move their factories to the southeast asia, intel, foxconn, lg, samsung and other well-known manufacturers are southeast asia invest and set up factories.
but, by southeast asian local supply chain system is not perfect, low production efficiency, product defect rate higher, these "foreign factory" may now face a severe test. recently, there is news that, so far, in cambodia has 70 factory closures, compared to last year's 35 doubled, and this trend in cambodia clothing industry also will rise steadily.
for those under heavily in southeast asia investment and set up factories chinese enterprises, southeast asia what is building dream to or of broken dreams? today, we to mining under industrial transfer southeast asia status and pain points.
industrial chain transfer no imagination in beautiful, factory dilemma
policy dividends, low cost is southeast asia attract chinese companies to invest and set up factories of important factor.
it is understood, southeast asian almost enjoy european and american-style japanese and korean-style, including china tariff ultra-gsp treatment, even duty-free treatment. southeast asia artificial low cost is a key consideration factor. china's demographic dividend is gradually disappear, increasing labor cost, enterprise recruitment difficulty is also rising, southeast asia in this regard to outstand advantages. in addition, in southeast asia enterprise can use dollars to pay for wages and other costs, -hedge us dollar exchange rate change impact.
however, reality and no imagination in beautiful.
transfer is a painful thing, a large upfront investment, team early construction also very difficult." wenzhou ting easy to import and export limited company official mr. hong said.
he summed up the plant transfer southeast asia problems encountered:
1, local supply chain system is not perfect, many raw materials can not supply, still need to rely on imported from china. plus freight, tariffs, which also led to southeast asia raw materials comprehensive cost is domestic high.
2, local labor compared to domestic really cheap, but because human habits different, low productivity;
it is understood, southeast asian local workers quality is generally not high, and the production efficiency is low, this is many chinese business owners have experience greatly. enterprise, its company in laos set up factories, more than 80% of the workers for chinese, the remaining for locals. these local staff general half past eight work nine arrive as eleven knocking off after, enterprise actually get it they can't.
in contrast, domestic employee production efficiency about for overseas factories of 2.5 times, this situation, local low-cost labor wages has not translated into advantage.
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