Besides, Winning By "Low" Is A Reflection Of The Low End Export Strategy Of Southeast Asian Countries.

As manufacturers look around the world for cheaper production sites, China's rising labor costs are an opportunity for other developing countries.

Devaluation of Vietnam shield to China

200 million shirts can only bring in 1 Boeing airliners.

"China is a large garment country, but not a strong garment country" has become the consensus of all walks of life.

But is the prospect of a powerful garment country also being threatened? The cost of labor in Southeast Asia is generally lower than that in China, but the infrastructure is relatively backward.

This is undoubtedly a new continent for some low-end product buyers to realize profits.

It is reported that Vietnam maintained an average annual growth rate of about 7% from 1986 to 2006, which is second only to China in Asia.

The rise of the "Asian tiger" relies on cheap labor and abundant natural resources, which are threatening China's low-end manufacturing exports.

Local media reported that the shoe industry, for example, was the first two years in Vietnam.

Nevertheless, economists believe that with China's

Fan Limin Neumann, a senior Asian economist at HSBC in Hongkong, said that in the past 15 years, as investors poured into China for cheap labor, China almost squeezed all the countries together. Now, as China moves upstream to the value chain, other countries have the opportunity to take the opportunity to enter the lower end of the value chain. "(Frederic Neumann)

Le Yumin, President of Hongkong trading company Li & Fung Ltd. (Bruce Rockowitz) recently said at a news conference that even if not all countries, at least most countries will get pricing guidelines from China.

Nevertheless, Li Fung has been able to resolve some of the cost pressures by pferring business to Indonesia and Vietnam.

Southeast Asia, which is close to 600 million of the population, was once a hot spot in the world until it was eclipsed in China.

Now the advantages of cheap labor are emerging again.

The average monthly salary of factory workers in Vietnam last year was about 136 dollars, and Indonesia was about 129 dollars, much lower than the average monthly salary of China's 413 dollars.

Southeast Asia also has a huge obstacle. Kampuchea, Vietnam and Indonesia, although wages are much lower than China, they all have problems of inadequate infrastructure and can not support manufacturing industries that are much larger than before.

Many companies in Southeast Asia are also striving to achieve the goal of cooperation among enterprises.

More than 10 Southeast Asian garment suppliers have recently reached an agreement to build a garment supply chain between Kampuchea and other garment processing companies and suppliers in Thailand or other neighboring countries.

In fact, these companies have reached an agreement to cooperate in the production of commodities, with a view to providing a "one-stop" service for clothing similar to that provided by Chinese clothing suppliers, namely, procurement of yarn, cloth, buttons and sewing in the same area.

Garment Manufacturers Association in Cambodia, chairman of the Kampuchea Garment Manufacturers Association (Van Sou Ieng), said that the vision of Southeast Asia is to realize the operation mode of "one country and many provinces" rather than divide and rule ten countries in one region.

He said that although countries differ greatly, they must compete for more business from China.

Malaysia PCCS Group, a member of the chamber of Commerce, has operations in China and Kampuchea.

Yik Thong Choon, assistant general manager of the company, said that they had two factories in China. In the past 6 months, the wages of the workers in the factory had risen by 50%. Due to the scarcity of labour force, the capacity of two factories is still less than half.

In stark contrast, the number of factory recruits in Kampuchea exceeds its actual needs.

The situation of oversupply of the labour force will gradually change, but even if there is tension in the future, it can also be alleviated, because the company is recently promoting cooperation with a Thailand fabric producer in order to provide support for Hongkong's clothing retailer business, so that the company has the opportunity to use the larger regional labor market to complete the garment products.