Little Does One Think! The "Golden Club" Has Helped Vietnam Fashion One! The New World Factory Is Threatening.

Recently, Truong Thanh Duc, the owner of a local silk screen printing factory, displayed his work in Hanoi, Vietnam. Truong Thanh Duc designed his own T-shirt printed with the portrait of North Korean leader Kim Jeong-eun and US President Trump, and rubbed second hot sessions. President Trump and North Korea's supreme leader Kim Jeong-eun met in Hanoi, Vietnam, on from February 27th to 28th.

It is reported that the shop has printed 500 T-shirts to commemorate the "Golden Summit" held in Hanoi.

Deep background --

CPTPP comes into effect in Vietnam

Vietnam's clothing industry is going to explode!

The comprehensive and progressive trans Pacific Partnership Agreement (CPTPP, Comprehensive Progressive Trans-Pacific Partnership) came into force in Japan, Canada, Australia, New Zealand, Mexico and Singapore in December 30, 2018, and became effective in Vietnam in January 14, 2019. Vietnam has become the seventh country to approve CPTPP. In addition, Brunei, Chile, Malaysia and Peru will implement the agreement 60 days after the completion of the agreement approval process.

It is reported that the CPTPP agreement occupies 13% of the global gross domestic product (GDP) and involves over 500 million of the population. After the formal entry into force of CPTPP, Japanese officials told the media that in 2019, Thailand and Britain could join the negotiation of this Agreement and become the new signatory of the agreement.

The impact of CPTPP on Vietnam's economy depends largely on Vietnam's ability to seize opportunities and overcome challenges. CPTPP phased out 98% of tariffs on agricultural and industrial products, relaxed investment regulations and strengthened protection of intellectual property rights.

Joining the CPTPP brings Vietnam an unprecedented market, "Vietnam makes" or becomes the biggest winner. Viet Nam news agency reported that Vietnam has imported 112 billion US dollars from CPTPP contracting parties, which is equivalent to 15% of Vietnam's total foreign investment.

The Vietnamese people in this land are not only industrious but also energetic. At present, about 30 million of the young people are in China, and the trend of population aging in China is obvious, while the Vietnamese population is relatively young. For a long time, Vietnam will maintain this advantage and enhance the competitiveness of its workforce.

In the field of textile and clothing, now "Made in Vietnam" is quietly occupying the "Made in China" market. In 2009, Nike's Vietnamese foundries completed a complete overtaking of China's capacity. In 2012, the last Chinese mainland factory in Suzhou was closed in 2012; in April 2018, UNIQLO announced that China's capacity was shifting to Southeast Asia, and Vietnam would bear 40% of the total production.

More than just foreign brands, with the attraction of cheap labor, many clothes, shoes and caps and private enterprises rooted in China's Guangdong and Fujian have set off a boom in moving factories to Vietnam. Chinese textile and garment enterprises also accelerated the pace of transferring to Vietnam.

Bosideng, a Chinese manufacturer and seller of down garments, will also expand its production in Southeast Asia. Bosideng began to pilot production in Vietnam textile factory related to Itochu's business, and plans to further expand production according to production trends.

The reason for the transfer is not complicated, because the labor cost to Vietnam can be reduced by nearly 5. Vietnam's production workers earn an average of 216 dollars per month. Moreover, according to world bank data, Vietnam is one of the largest labor force in Southeast Asia, with 57 million 500 thousand workers, while Malaysia and Philippines are 15 million 400 thousand and 44 million 600 thousand respectively.

Under the background of Sino US trade friction, China's apparel trade orders are struggling, and Vietnam's garment manufacturing industry is striding forward. This can not but cause industry vigilance.

Vietnam is working with Amazon to copy the way of Chinese clothing.

Vietnamese Prime Minister: Vietnam must become the "world factory"!

The Ministry of industry and trade of Vietnam has announced plans for cooperation between Vietnam and Amazon Amazon Global Selling.

Wu Bofu, director of the Trade Promotion Bureau of the Ministry of industry and trade, said that as the Ministry of industry and trade department responsible for trade promotion national management affairs, from the beginning of last year, the board has begun to understand the Amazon global shop project, which is intended to help Vietnamese enterprises to promote product sales through e-commerce.

Amazon's global launch project will help global enterprises to promote globalization. Through the Amazon global store project, global sellers can directly communicate with 300 million buyers account. It is reported that the two sides have agreed to provide support to Vietnamese enterprises, giving priority to helping Vietnam's small and medium-sized enterprises to go out through the official website of Amazon.com and build brands in the Amazon.com business environment.

Berard Tay, head of Southeast Asia affairs of Amazon global opening project, revealed that in September 2018, Amazon's global launch project has announced measures to assist Vietnamese enterprises. In 2019, Vietnam's Ministry of industry and trade, the Trade Promotion Bureau and the Amazon global open shop project are expected to cooperate with the SME assistance program to help Vietnamese SMEs enhance their communication with global customers and expand their exports.

Vietnamese Prime Minister: Vietnam must become the "world factory"!

In recent years, the advantages of land, labor and energy have made Vietnam's manufacturing industry develop rapidly.

Vietnam's official news agency, Vietnam news, recently reported that in Vietnam's Hanoi industrial and trade conference held in January 17th, Vietnamese Prime Minister Ruan Chunfu said: Vietnam must become a world factory, and the government will create a favorable investment environment for all economic entities to promote production and promote growth.

Ruan Chunfu said that after 30 years of reform, Vietnam's industry and trade have made remarkable growth and become an important contributor to Vietnam's economic development, accounting for 80% of the GDP of the country. In 2018, Vietnam achieved its established economic goals, and both imports and exports and household consumption rose rapidly. Vietnam's total import and export volume reached 245 billion US dollars (1 trillion and 660 billion yuan) in 2018, an increase of 13.8% over the previous year, far exceeding the government's target.

He also pointed out that although Vietnam's economy has achieved good results, there is still much room for improvement in planning, implementation and management. The development of the industry has yet to meet the requirements of industrialization and modernization. In the fourth wave of industrial revolution, Vietnam is facing severe challenges.

Ruan Chunfu said: "if Vietnam wants to become a dragon, it will depend largely on the development of industry and trade." When it comes to the 2019 target, he said that science and technology are the most important. The technology industry should speed up the process of privatization, state capital should accelerate the withdrawal, state-owned enterprises should speed up restructuring, and continue to solve the tasks that have not yet been completed and effectively promoted.

Ruan Chunfu also asked the Ministry of industry and trade of Vietnam to resolutely respond to globalization and launch corresponding reform measures.

In response, Chen Junying, Minister of Vietnamese industry and trade at the meeting, responded that the Ministry of industry and trade has launched two action plans in January 4th, and will continue to solve the problems of import and export, trade promotion and foreign market development, while solving new problems arising from bilateral trade, such as trade barriers and anti-dumping duties.

He also asked the Department to make drastic updating measures in the context of international integration. Chen Junying said that the Ministry of industry and trade will focus on promoting investment and decentralization, and will cut at least 79 administrative procedures in 2019.

Comparison of some elements between Vietnam and China

Note appended

Vietnam environmental protection specification:

1, Vietnam's emissions targets and regional correlation, each industrial area will have a certain amount of emissions (part of the industrial area does not approve pollution projects, such as the coastal defense industry in Singapore), need the company to apply for the park.

2, the emission rights of the park are reserved. Later, enterprises want to enter the park. If the park has no index, it will not be able to enter.

3, at present, Shenzhou and Bailong Park (Fudong) has 90 thousand tons of emission standards. Shen Zhou has applied for 20 thousand tons of indicators, and sewage treatment equipment invested about US $10 million (because the company's cotton dyeing has removed a lot of impurities, so the price is relatively low).

4, Bailong has about 12 thousand tons of sewage index, about $15 million investment (because cotton dyed, difficult to deal with, high impurity of cotton, high concentration, so equipment input high).

Comparison of regional environment in Southeast Asia:

1. Vietnam has abundant electricity and abundant water resources. Political stability and personnel quality are relatively high. The efficiency of clothing workers is probably 70%-80% in China.

2. Kampuchea's workers' cultural level is not high, their national holidays are numerous, their employees' freedom is relatively high, and the efficiency of garment factories is only 40%-50% in China.

3. Bangladesh is one of the poorest 30 countries in the world, with cheap labor, and a large number of European and American brands of garment factories, which do not produce cotton locally, and most of the yarn supply needs to be imported. However, transportation, electricity and other infrastructure are very weak. The main problem is electricity. (every factory needs to use natural gas to generate electricity, but the whole supply of natural gas is tight).