Adidas sees ongoing sourcing shift from China to Vietnam

[Viet]

Reuters Staff

BERLIN (Reuters) - The chief executive of Adidas (ADSGn.DE) expects a shift in its sourcing of footwear from China to Vietnam to continue although he shrugged off concerns on Wednesday about the possible imposition of U.S. tariffs on Chinese-made shoes.

FILE PHOTO: An Adidas sign is seen before the company's annual news conference in Herzogenaurach, Germany March 14, 2018.


Factories in Vietnam produced 44 percent of Adidas footwear volume in 2017, up from 31 percent in 2012, while Chinese suppliers made 19 percent, down from more than 30 percent in 2012, Kasper Rorsted told a annual meeting of shareholders.

“I’m not going to rule out that this trend is going to continue,” he said, adding: “China is still an important procurement market, irrespective of trade duties.”

Rorsted noted that there was still a lot of uncertainty over what sectors could face new U.S. tariffs. “We might be hit by import duties but it will also apply to our competitors.”

German rival Puma (PUMG.DE), which makes about a third of its products in China, said last month that it is working on contingency plans to move some production from China to other Asian markets if U.S. tariffs are imposed.

https://www.reuters.com/article/us-...ing-shift-from-china-to-vietnam-idUSKBN1IA1DA

 

[Viet]

It’s cheaper when producing in Vietnam. In addition VN is a growing consumer market. Olympus just shuts down the plant in China and moves great parts of production to Vietnam. Puma will follow suit.

@Nilgiri

http://www.ecns.cn/m/business/2018/05-09/301902.shtml

 

[atan651]

Good! China wants to kick out as many US companies as it can, the sooner the better.

 

[Misay]

Good! China wants to kick out as many US companies as it can, the sooner the better.

Adidas is a German company.

I paid $40 for adidas pants at last year.There is no advantage in the same price.Shoes, too.

 

[Kai Liu]

A country approaching $10,000 per capita GDP is not supposed to do these sort of low end manufacture job. Poor countries like vietnam and india should take over... The sooner the better...

 

[Viet]

A country approaching $10,000 per capita GDP is not supposed to do these sort of low end manufacture job. Poor countries like vietnam and india should take over... The sooner the better...

man I hope your dream comes true quickly. Foxconn produces headsets and cables for iphones. the company can shut down all plants in China and moves all to Vietnam... the sooner the better.

 

[Kai Liu]

man I hope your dream comes true quickly. Foxconn produces headsets and cables for iphones. the company can shut down all plants in China and moves all to Vietnam... the sooner the better.

I wish you are Guo Tai-ming, but you are not...
Anyway, Foxconn is not doing high-tech either. It is not going to stay here in Mainland China forever as we are shifting to higher end, but again you have to compete with poor countries like North Korea and india etc. for it in the future, when you reached that stage. Therefore, I wish your dream comes true quickly as well to get Foxconn jobs in your country ASAP... and BTW, try to keep your Samsung jobs since NK soon will take them away from you...

 

[Viet]

I wish you are Guo Tai-ming, but you are not...
Anyway, Foxconn is not doing high-tech either. It is not going to stay here in Mainland China forever as we are shifting to higher end, but again you have to compete with poor countries like North Korea and india etc. for it in the future, when you reached that stage. Therefore, I wish your dream comes true quickly as well to get Foxconn jobs in your country ASAP... and BTW, try to keep your Samsung jobs since NK soon will take them away from you...

aha interesting with China shifting production to high end products. sounds good. lets see if you can find jobs for all Chinese looking to work in high paid jobs. even Germany with $42,000 GDP per capita needs lots of low paid jobs, but probably China with $10,000 per capita doesn´t. ok pls tell me how can Samsung export a single made in NK phone to oversea market? NK has zero trade contacts nor pacts with major markets: Asean, US, Europa, China, Japan, Russia, etc...

 

[ZeEa5KPul]

Do Agent Orange-poisoned Vietnamese have the hand-eye coordination to be able to do this kind of work? The effects of this toxin on the central nervous system are severe.

 

[Kai Liu]

aha interesting with China shifting production to high end products. sounds good. lets see if you can find jobs for all Chinese looking to work in high paid jobs. even Germany with $42,000 GDP per capita needs lots of low paid jobs, but probably China with $10,000 per capita doesn´t. ok pls tell me how can Samsung export a single made in NK phone to oversea market? NK has zero trade contacts nor pacts with major markets: Asean, US, Europa, China, Japan, Russia, etc...

You don't have to worry about how we climb up the ladder while you are eating our dust. At least this will be good for you because hopefully in the future you will not have to sneak across the border to work for some evil underground factory owners...And also because high-tech is irrelevant to you...

About NK, do you think establishing some trade contacts or pacts will even be a problem? At least China, South Korea, etc. as the world's leading market for mobile phones, etc. will certainly switch to buy made in NK...

 

[8888888888888]

I don’t think iPhones will be move from
China. It is a high end product which robots are taking over most manufacturing.

 

[TaiShang]

man I hope your dream comes true quickly. Foxconn produces headsets and cables for iphones. the company can shut down all plants in China and moves all to Vietnam... the sooner the better.

Foxconn is building its most advanced plant in Nanjing, as we speak. So, it is very normal that they would consider less advanced and dirtier technologies to be outsourced to a third country.

That's actually the normal progress of evolutionary chain. Everyone has their own bright spots in nature.

 

[Yaseen1]

china should impose high tax on addidas shipment of their industrial machinery and equipment from moving outside china to vietnam or elsewhere or ban it

I don’t think iPhones will be move from
China. It is a high end product which robots are taking over most manufacturing.

huawei is better than iphone and in future china own brand of mobilephones will lead market as they are much cheap with same specs like iphone

 

[Viet]

Foxconn is building its most advanced plant in Nanjing, as we speak. So, it is very normal that they would consider less advanced and dirtier technologies to be outsourced to a third country.

That's actually the normal progress of evolutionary chain. Everyone has their own bright spots in nature.

Foxconn once promised to invest $7b to set up plants in VN making the country as a major production base for iphones and other stuffs. Too bad, only a fraction is realized. China obviously offered a better deal for the Taiwanese. Maybe politics also plays a part with Ccp pressing Foxconn not to invest in Vietnam.

Look, we have come from a long way, I am aware of huge technology gap between VN and CN as well as the imblance of power. I would´nt say making cables for iphones as dirtier technologies. we won´t stand idle. VN is expected to sign a trade pact with the Europe by year end. the most ambitious trade agreement between EU and a developing country as Vietnam. the pact will push VN exports to EU by 30%.

 

[8888888888888]

EU considers China a better market mainly because Chinese buys a lot of food from the EU especially the high end ones.