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China's status as "world factory"
From: Dongguan Xuan Yu Shoes Co. Ltd. Post date: 2021-03-19


The US CNBC website reported that due to the trade diversion effect of the Sino US trade war, Vietnam's foreign trade is developing rapidly and stimulating economic growth, and many enterprises also regard Vietnam as an alternative production place outside China. However, CNBC cited data to show that there is still a huge gap between Vietnam and China in the fields of industrial chain and human resources, and it is difficult to replace China's "world factory" status in a certain period of time.

US media said that there are some bottlenecks in Vietnam, which may restrict the country's ability to accept foreign trade.





One of the important factors is the supply chain. China's manufacturing sector and economy are large and can operate more efficiently. Vietnam's infrastructure, such as roads, ports and cargo handling capacity, is still under construction, obviously unable to compare with China's huge and perfect infrastructure system. Due to the gap between manufacturing system and production capacity, Vietnam obviously does not have sufficient supplier base, parts and service supply system, etc. Another constraint is labor. Compared with China, Vietnam's biggest problem is labor, CNBC quoted Kenny liehl, an economist at Fitch, an international rating agency, as saying. In terms of population, Vietnam is only 1 / 14 of China's. At present, Vietnam's total population is less than 100 million, and its labor force is 57.5 million, of which only about 12% are specially trained production and technical workers. This number can not be compared with China, nor can it meet the current rapid growth of demand. CNBC said that no country can fully absorb the capacity transferred from China due to the trade war. According to the Wall Street Journal of the United States, a trade war is unlikely to lead to a "large-scale relocation" of global supply chains from China. Moreover, China has begun to carry out high-tech, automation and intelligent transformation of its factories, and further improve labor productivity, which "will take many years" in Vietnam.




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