Sino US Trade Friction: Who Is Benefiting From Vietnam'S Proposed More Than 300 Textile Industrial Park?

In recent years, under the background of Sino US trade friction, China's foreign trade orders have been struggling. Vietnam is making great strides, and many factories are beginning to move to Vietnam.

Since the beginning of the year, Vietnam has been expanding its manufacturing industry with Vietnam's entry into CPTPP, in order to attract more foreign capital to build factories.

According to the data, Vietnam's GDP increased by 6.79% in the first quarter of 2019.

The export data in this area have been further improved, and Vietnam can be seen as the biggest beneficiary in manufacturing.

At present, zero export tariffs and low tax rates are the main concerns of foreign investment.

Many textiles exported from Vietnam to Europe and the United States are all zero tariff.

The tariff in this province is actually profit.

It is precisely because of the favorable conditions in this regard that Vietnam has a more mature free trade system, and foreign investment has increased investment in Vietnam.

To a certain extent, Vietnam did get many benefits for China's reasons.

But this does not mean that investors are not optimistic about the Chinese market, but only with the help of Vietnam's lower labor costs to expand their business in China.

After all, NguyenThiTuyetMai, Deputy Secretary General of the Vietnam textile and Garment Association, delivered a speech at the 2019 Vietnam textile and clothing exhibition, which said that the export of Vietnamese textile garments in 2018 amounted to US $36 billion 200 million. However, most of the raw materials needed depend on imports, about US $21 billion. The raw materials are mainly from China, Korea and India.

He said that this year's export target of 40 billion US dollars, estimated that imports of raw materials will also rise.

It is undeniable that Vietnam's infrastructure and suppliers remain to be improved, especially those with high technology and precision. It is still very difficult for Vietnam to become the next "production base".

Moreover, the advantages of artificial labor will gradually diminished as artificial intelligence is advancing and the demand for labor in the future will be reduced.

For manufacturing and textile industries, the reduction in labor costs means higher education levels.

Only 9% of Vietnam's population is under higher education. How to get rid of repeated single processing and production is also the main problem facing Vietnam.

In view of this, Vietnam now has symptoms of "labor shortage". Although foreign investment is due to the labor force of Vietnam, the development of this trend continues, and the difficulty of recruitment is also increasing as factories expand.