Many technology lines are being opened in Vietnam while in China, some factories are abandoned and workers assembling smartphones are unemployed.
Follow ThinkChina, The question of whether Vietnam will become the world’s new factory is attracting attention on Chinese online forums. This page also quotes the article titled “Goodbye China, hello Vietnam” in the newspaper FAZ of Germany to strengthen the argument that even the international press considers “Vietnam is emerging as a better and cheaper destination” for global technology giants.
Apple CEO Tim Cook at a Luxshare factory in 2017. Photo: Reuters
Meanwhile, Sina that information has continuously appeared recently such as Apple first producing Apple Watch, MacBook in Vietnam; Samsung prepares to produce semiconductor components at Thai Nguyen factory; American chip corporation Synopsys expands operations in Vietnam… even more concerned about the issue. In contrast, the picture is less vibrant in the Chinese smartphone assembly market. Demand for mobile phones fell, while some major manufacturers moved part of their production lines to Southeast Asia and neighboring countries in turn. Many smartphone assembly workers in China have lost their jobs, and some say they have seen mushrooms growing in abandoned factories.
“Some factories in Dongguan have closed, showing that their competitiveness is not comparable to factories in Vietnam. They have a cheap labor source, which has the potential to replace China as the world’s factory.” account Zhang Lei commented on Weibo this week.
ThinkChina also quoted some business owners as saying that the process of shifting production to Vietnam had begun at the end of 2018. Many companies wanted to reduce supply chain risks, so they moved to Vietnam.
Charles Wong, Director of Superior EMS Limited – a company specializing in the production of automation lines in Hong Kong and with a factory in Hai Duong, said that it has more than two decades of investment in China. However, in March 2020, the company moved its factory to Vietnam. “There is not much difference, so we can easily adapt. We are forced to expand the factory in this country according to the request of our customers. Many partners want to shift the focus of operations outside of China for about 3-4 years. They worry that the supply chain might be affected in the future if they don’t set up factories in different countries,” Wong explained.
However, some experts consider China’s position as the world’s factory to be irreplaceable. SCMP Citing economics professor Yao Yang at Peking University, “There is nothing to worry about China’s manufacturing industries growing into Southeast Asia. Despite concerns caused by China’s growing production capacity, there is nothing to worry about. Vietnam and China will retain the title of world’s factory for at least another 30 years.”
Professor Tang Jie, former deputy mayor of Shenzhen, said: “China must be careful about Vietnam’s exports surpassing Shenzhen. We can’t just tell companies ‘don’t go’. , instead need to create a better environment to facilitate the development of value chain companies”.
Follow Global TimesChina should not underestimate the competition from Vietnam and still need to continuously improve the market environment to attract and retain foreign investment, and strengthen its complementary relationship in production with Vietnam. How much Vietnam can actually benefit from China’s production shift depends on its ability to “absorb” new investments. It is important to improve the infrastructure and business environment.
“New foreign investments, particularly in the manufacturing and high-tech sectors, will help turn Vietnam into a major manufacturing hub for the region. The country can capitalize on this shifting trend to make the country’s economy more resilient,” he said. make itself a key point in the global supply chain,” ThinkChina comment.
Khuong Nha
