Max Group Chose Not To Go To Southeast Asia.

Moving factories to Southeast Asia seems to be an ideological trend in the domestic manufacturing industry.

In October, according to the plan announced before Adidas headquarters in China, it will close the only direct production base in Suzhou Industrial Park and move it south to Burma.

To this end, Adidas announced earlier that it would terminate the contract of 10 foundries in Suzhou.

A part of Zhejiang's manufacturing industry is also in a similar mood.

In the middle of this year, 13 Chinese large textile companies, such as Tianhong Textile Group, sent representatives to Indonesia to find suitable factories.

Zhejiang also has many manufacturing enterprises that are planning to shift to Kampuchea, Sri Lanka and other places.

According to the Ministry of commerce data, in the first half of 2012, China invested $1 billion 488 million in ASEAN countries such as Indonesia, Vietnam, Kampuchea and Thailand, a significant increase of 34.3% over the same period last year.

The popular saying is that as China's labor costs rise, more and more international brands are pferring orders to Southeast Asian countries, including Nike, UNIQLO and other major brands.

In 2010, Nike's share in Vietnam rose to 37%, more than 34% of China's.

However, the debate is also happening, and the sound of backwash will soon ring out.

Nanning, Guangxi, which is adjacent to Vietnam, is a place for confrontation.

"We do not go to Southeast Asia."

Zhang Yuanheng, standing in the China ASEAN Economic Development Zone in Nanning, pointed to the beautiful new factory area of his company. "4 years ago, we decided not to go to Southeast Asia to Nanning, but everything in 4 years proves that we are not wrong."

Zhang Yuanheng, a native of Taiwan, is the manager of Human Resources Department of Taiwan Maas Footwear Group.

Max group produces 20 million pairs a year.

The group has about 10 thousand people and is one of the five largest shoe companies in Taiwan.

In 2008, the Mauser group had answered this multiple-choice question ahead of time.

In addition to manufacturing headquarters in Dongguan, the group moved the production part to Nanning. At present, the manufacturing share of Nanning base in the group footwear industry is increasing.

Zhang Yuanheng expressed no understanding of plans for mainland enterprises to resettlement to Southeast Asia.

"After 2008, have you ever seen Taiwan enterprises shouting" go to Vietnam "and" go to Southeast Asia "? Do you invest in Southeast Asia like Foxconn? Instead, he has bases in Nanning, Chengdu, Henan, Shanxi, Jiangsu and so on.

Zhang Yuanheng said that this represents the choice and mentality of most Taiwan companies.

Many Taiwan companies have moved back from Southeast Asia to the mainland.

It seems to be a confirmation of this view.

In October 27th, Terry Gou, President of Foxconn, hosted a banquet in Taiwan Hon Hai Technology headquarters to receive 205 outstanding Foxconn employees from 22 parks in 17 provinces and cities in mainland China.

Foxconn executives said that the excellent Foxconn employees in Taiwan will become normal. They will be held once a half year, and the expenses incurred will be borne by the company.

"Abandon Vietnam in the nearest place to Vietnam."

In the China ASEAN Economic Development Zone, Nanning, Guangxi, adjacent to Vietnam, the Maas group built its own mainland production base.

The new plant, which invested 560 million yuan in April 2010, is now the largest footwear manufacturer in the Beibu Gulf region.

"All these 560 million yuan are raised by the company itself, without borrowing a cent from the bank, so much money is spent in Nanning because we have great confidence in the market prospect of the mainland base."

Zhang Yuanheng said that mus had divided several bases in the system, and 1200 yuan / more shoes remained in Dongguan, and 600-1000 yuan / pairs were put into production in Nanning, because the production process in Guangxi is relatively simple, so the gross profit is even lower.

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In 2007-2008 years, some Taiwanese funded enterprises in Dongguan, which were part of the mus group, shut down the mainland factories and moved the production lines to Vietnam, Indonesia, Burma and Philippines.

Only the mus family came to Nanning alone.

4 years ago, now in the China ASEAN Economic Development Zone, Nan Xi, Guan Quan and other Taiwan funded shoe companies followed mace's landing, and even the United Group invested in it.

"Everyone is impressed by the sharp rise in the cost of labor in the mainland, but do you think he has invested in Southeast Asia like Foxconn? Instead, he has bases in Nanning, Chengdu, Henan, Shanxi, Jiangsu and so on, and more and more."

Zhang Yuanheng said, this represents the mentality change of most Taiwan enterprises.

Zhang Rongjian, deputy director of the China ASEAN Economic Development Zone, also confirmed to reporters that in 2008, the development zone only had a Taiwan business, and now it has reached 15.

In this way, these Taiwan funded enterprises "chose Vietnam" in the nearest place to Vietnam and chose Nanning.

This is due to the "blood lesson" in Southeast Asia.

Without developing countries, labor costs are low, but political instability, religious beliefs and cultural differences increase management costs, poor infrastructure, poor upstream and downstream support, insufficient electricity and high logistics costs.

Zhang Yuanheng, some of his friends from Southeast Asia, told him that the trade unions in Vietnam were powerful and had many strikes, and the enterprises took time and effort to reduce work hours. Some Southeast Asian countries had strong religious beliefs, and prayed a few times a day, which occupied much work time in Taiwan.

People there do not want to work overtime. If they meet with urgent orders, they will not be able to complete them.

There is no such problem on the mainland.

In contrast, the mainland government protects Taiwan funded enterprises and gives preferential policies to spare no effort. You do not need to worry about infrastructure and power supply problems, choose factories close to coastal provinces, and logistics directly access ports and then export, or even do not need port pshipment.

"Why do we come to Guangxi? Because Guangxi people have a more harmonious disposition. Their personality is not so easily excited. The locals are very industrious and hardworking."

Zhang Yuanheng said.

Cost is not directly proportional to efficiency.

Over the past few years, the cost of mainland labor has risen significantly. Wages in coastal areas have been two times that of Vietnam and Philippines, but production efficiency is also two times higher.

Due to fierce competition, mainland workers are willing to learn, improve their skills, and even help improve production processes or processes, which is more beneficial to enterprises.

Wang Xuejun, chairman of the German Bayer photovoltaic company, agrees that he believes that China's industrial support has an unmatched advantage. The 90% industry can complete more than 90% matching within 200 kilometers, which can not be achieved in any other country.

"Many European and American PV companies have failed to set up factories in Southeast Asia. Why? Because the cost is not up to Chinese enterprises. Can you imagine that there are more than more than 1000 enterprises in the mainland with a single screw pin?"

"Gambling is Chinese family ethics".

In the eyes of Taiwan funded enterprises, the mainland also has a strong position - vast territory and uneven development level between regions. It is easy for the manufacturing industry to find new cost depressions in the mainland to offset the rising cost of coastal areas.

Huang Lijin, 32, was from Nanning. He worked in Shenzhen in 2004. But in 2011, after he became a family and had children, he sold the house in Nanning and moved back to Nanning.

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"The pressure on the Pearl River Delta is too high, the cost of living is too high, and the children have been born. Taking into account the time spent with children in the future, the care for the elderly in the family and other factors is difficult to take care of in Shenzhen, and a large number of enterprises return to the mainland, so that they can take the cause and family together."

Huang Lijin told reporters.

The choice of Huang Lijin made Zhang Yuan Heng more emboldened.

"4 years ago, we moved the factory from Dongguan to the mainland, gambling on the ethical and family values of the Chinese people. Finally, we will return to the original situation: we will not sacrifice our families' children's growth for the sake of money, sacrifice the life of the couple, and we will return home."

Zhang Yuanheng said.

From this logic, coastal

Trouble will be great in the future.

For example, 9 of the shoemaking workshops in Guangdong are outsiders. With the development speed of the inland provinces in recent years, it is very difficult for the coastal areas to retain their outsiders by salary.

As a result, the executives of the max group have made a few years of contact with Zhang Yuanheng: "the headquarters of the 5000 people in Dongguan will not be removed, but the factories in Nanning will be expanded."

It is inevitable that more and more people will be recruited. "Max's base in Nanning needs 8000 workers in the first phase. After the completion of the two phase, there will be a total of 15 thousand people in the first phase."

In the first year or two, the recruitment effort was very laborious. The Nanning base opened the salary to 1500-2500 yuan / month. In 2011, it could only attract more than 1000 people. But then, the initial judgement was confirmed. Many people over 30 years old who worked in the Pearl River Delta began to work in their hometown.

At present, the number of employees in Nanning base has reached more than 2000, and the number is continuing to rise.

"The biggest enemy is the real estate site".

The government of Guangxi is also helping Taiwanese funded enterprises.

Zhang Rongjian said that at present, the China ASEAN Economic Development Zone is helping enterprises to recruit workers in all parts of Guangxi, Guizhou and Yunnan, and offers preferential policies in Nanning, vocational training, preferential housing for low rent housing and affordable housing, so as to promote the 15 year compulsory education for migrant workers.

The government has also introduced several universities and vocational skills schools to the development zones, so that enterprises and schools can be directly aligned to help enterprises cultivate "order type" talents, and students will be able to work in enterprises once they graduate.

However, for the intensive manufacturing enterprises, the biggest difficulty in moving to the mainland is still the employment problem.

In Zhang Yuanheng's opinion, Taiwan enterprises are more rooted in the mainland. They are happy and worried about each other's entanglements.

"Foxconn's factory recruitment in Nanning is calculated by tens of thousands of people, which has intensified the struggle for labor resources and improved the salary level of the inland provinces." but Foxconn's arrival will also boost the local economy and attract more talents and labor force.

By contrast, the most powerful enemy in manufacturing is real estate sites.

The domestic real estate market has been booming for 10 years, and a large number of workers have been pulled from factories.

The house price here is only 2200 yuan / square meter in 2002, but it has risen to 7000 yuan / square meter in 2012.

In this market, the local real estate construction workers in Nanning can get 3000 yuan a month for their bags, and five thousand or six thousand of the high ones.

"Mainland real estate workers have become white-collar workers.

If the real estate industry does not collapse, there will be no hope for the mainland's industry. "

Zhang Yuanheng is very much in favor of the mainland's current market regulation and control policy. He said that Taiwan has also experienced a real estate bubble and accumulated profound lessons. It is advocating the development of industry and achieving the status of Taiwan's industry, especially the high-tech industry in the world.

"If a nation, a person, is accustomed to take one million nights from the real estate industry to ten million, will it also invest in 1000 yuan to earn 10 yuan in industry?"