Nike shifts footwear production from China to Vietnam

[Viet]

A Nike store in Beijing, but more of its shoes are now made in Vietnam and Indonesia than in China.

TAIPEI (Taiwan News) — Vietnam has replaced China as the main manufacturing base for sneakers by Nike, Inc., reports said Wednesday (Jan. 5).

The American brand’s CEO, John Donahoe, raised eyebrows last June by describing his company as “of China and for China.” This followed reports that it had shown concern about repression of the Uyghur population in the Chinese region of Xinjiang.

According to Nike’s financial report for 2021, 51% of its sneakers were made in Vietnam, with the proportion made in China falling to 21%, compared to 35% in 2006, CNA reported.

Even Indonesia has surpassed China as a production base, seeing its share of Nike footwear increase from 21% to 26% over the past 15 years. Chinese media pointed out that Nike is not alone, as its German rival Adidas AG has followed in the same direction, with 40% of its footwear made in Vietnam.

Opinions were divided about the impact of Nike’s move on the Chinese shoe sector. Some analysts saw the changes as an opportunity for China to upgrade its footwear industry, while others said tax benefits and lower wages in Vietnam would undermine the business, causing a loss of jobs, tax income and competitive spirit.

Nike shifts footwear production from China to Vietnam | Taiwan News | 2022-01-05 19:32:00

Indonesia has also overtaken China as a manufacturing base for Nike sneakers | 2022-01-05 19:32:00

www.taiwannews.com.tw

 

[MORTICE]

After reading the thread, I summed up that workforce in Vietnam and Indonesia is cheaper than in China? Did I get it right? That's why clothes manufacturing has a heavy position in countries like Vietnam, Indonesia, Bangladesh? I'm wondering how's these big companies' attitude towards simple workers. I've recently purchased these yeezy boost 350 that cost me about 300$. The price isn't the cheapest one, even more, it's not affordable for everyone. I'm sorry about the hard-working people who receive pennies when the company is putting it all in their greedy mouths.

 

[Beast]

After reading the thread, I summed up that workforce in Vietnam and Indonesia is cheaper than in China? Did I get it right?

You must know the source is from Taiwannews. The famous media who are expert in report anything of distortion against mainland China.

 

[beijingwalker]

We are never proud of making shoes, Nike is welcome to leave China.

 

[Indos]

After reading the thread, I summed up that workforce in Vietnam and Indonesia is cheaper than in China? Did I get it right?

Need to compare with minimum salary regulation. Minimum salary in Jakarta, West Java, Riau, Kalimantan, etc are even slightly greater than minimum salary in Kuala Lumpur, Malaysia.

 

[Indos]

I dont know with other factory, but factory like LG in Indonesia will also provide free meal beside they need to abide with minimum salary regulation that will increase every year. Indonesia main industry, including textile and footwear are concentrated in West Java region.

 

[mudas777]

View attachment 806378
A Nike store in Beijing, but more of its shoes are now made in Vietnam and Indonesia than in China.

TAIPEI (Taiwan News) — Vietnam has replaced China as the main manufacturing base for sneakers by Nike, Inc., reports said Wednesday (Jan. 5).

The American brand’s CEO, John Donahoe, raised eyebrows last June by describing his company as “of China and for China.” This followed reports that it had shown concern about repression of the Uyghur population in the Chinese region of Xinjiang.

According to Nike’s financial report for 2021, 51% of its sneakers were made in Vietnam, with the proportion made in China falling to 21%, compared to 35% in 2006, CNA reported.

Even Indonesia has surpassed China as a production base, seeing its share of Nike footwear increase from 21% to 26% over the past 15 years. Chinese media pointed out that Nike is not alone, as its German rival Adidas AG has followed in the same direction, with 40% of its footwear made in Vietnam.

Opinions were divided about the impact of Nike’s move on the Chinese shoe sector. Some analysts saw the changes as an opportunity for China to upgrade its footwear industry, while others said tax benefits and lower wages in Vietnam would undermine the business, causing a loss of jobs, tax income and competitive spirit.

Nike shifts footwear production from China to Vietnam | Taiwan News | 2022-01-05 19:32:00

Indonesia has also overtaken China as a manufacturing base for Nike sneakers | 2022-01-05 19:32:00

www.taiwannews.com.tw

Work force may be slightly cheaper but production output is much higher in the Chinese factories. Its deliberate attempts by the US to hurt Chinese economy to move factories out of that region to other parts. Chinese in turn can do is bring out the similar models under the same roof of their own and ban Nike trading out of the country all together. Chinese excuse they are using slave labour in the Vietnam and Indonesia, in a single stroke Nike will loose 25% of the trade and hurt them where they can feel the pain.

 

[lcloo]

No wonder we can't get more Indonesians to work for Malaysia now a days. They are all going back for higher salaries in Indonesia.

 

[Indos]

After reading the thread, I summed up that workforce in Vietnam and Indonesia is cheaper than in China? Did I get it right? That's why clothes manufacturing has a heavy position in countries like Vietnam, Indonesia, Bangladesh? I'm wondering how's these big companies' attitude towards simple workers. I've recently purchased these yeezy boost 350 that cost me about 300$. The price isn't the cheapest one, even more, it's not affordable for everyone. I'm sorry about the hard-working people who receive pennies when the company is putting it all in their greedy mouths.

The reason of cloths and footwear manufacturing is quite large in Indonesia is due to high demand, I would say almost all are Indonesian companies, they are not foreign companies, but they have contract to supply certain brand.

There is no direct Nike company in Indonesia, they dont do manufacturing anymore.

No wonder we can't get more Indonesians to work for Malaysia now a days. They are all going back for higher salaries in Indonesia.

This is why Gloves company in Malaysia uses South Asian workers nowadays, that company only pay 300 USD per month for the labor, even in province like Kalimantan island the minimum salary is higher.

 

[Indos]

View attachment 806378
A Nike store in Beijing, but more of its shoes are now made in Vietnam and Indonesia than in China.

TAIPEI (Taiwan News) — Vietnam has replaced China as the main manufacturing base for sneakers by Nike, Inc., reports said Wednesday (Jan. 5).

The American brand’s CEO, John Donahoe, raised eyebrows last June by describing his company as “of China and for China.” This followed reports that it had shown concern about repression of the Uyghur population in the Chinese region of Xinjiang.

According to Nike’s financial report for 2021, 51% of its sneakers were made in Vietnam, with the proportion made in China falling to 21%, compared to 35% in 2006, CNA reported.

Even Indonesia has surpassed China as a production base, seeing its share of Nike footwear increase from 21% to 26% over the past 15 years. Chinese media pointed out that Nike is not alone, as its German rival Adidas AG has followed in the same direction, with 40% of its footwear made in Vietnam.

Opinions were divided about the impact of Nike’s move on the Chinese shoe sector. Some analysts saw the changes as an opportunity for China to upgrade its footwear industry, while others said tax benefits and lower wages in Vietnam would undermine the business, causing a loss of jobs, tax income and competitive spirit.

Nike shifts footwear production from China to Vietnam | Taiwan News | 2022-01-05 19:32:00

Indonesia has also overtaken China as a manufacturing base for Nike sneakers | 2022-01-05 19:32:00

www.taiwannews.com.tw

From what I read, there is shortage of labor supply in Vietnam currently

 

[Bouncer]

The price isn't the cheapest one, even more, it's not affordable for everyone. I'm sorry about the hard-working people who receive pennies when the company is putting it all in their greedy mouths.

Listen I am not by any means inhumane conditions for workers. But I never understood that Westerners can't understand this simple thing; these jobs, even long working hours with no safety equipment etc, are better than not earning anything in developing countries. There is no social security or safety net in these countries. So they'd rather work in unsafe conditions than not work at all. You as a consumer have nothing to be sorry about.

 

[Viet]

From what I read, there is shortage of labor supply in Vietnam currently

Lack of skilled workers is a worldwide phenomenon
trying to fill engineering positions? Impossible to find anyone in the US or Germany.
Supply problem will persist for years. Vietnam is no difference. Saigon alone urgently seeks 100,000 workers.

Ho Chi Minh City's labor woes threaten global supply chains

Vietnam's industrial south seen short 100,000 workers due to COVID

asia.nikkei.com

 

[Apollon]

We are never proud of making shoes, Nike is welcome to leave China.

You dont wear shoes?

 

[313ghazi]

No wonder we can't get more Indonesians to work for Malaysia now a days. They are all going back for higher salaries in Indonesia.

Plenty of Pakistani workers available.

 

[Apollon]

Work force may be slightly cheaper but production output is much higher in the Chinese factories. Its deliberate attempts by the US to hurt Chinese economy to move factories out of that region to other parts. Chinese in turn can do is bring out the similar models under the same roof of their own and ban Nike trading out of the country all together. Chinese excuse they are using slave labour in the Vietnam and Indonesia, in a single stroke Nike will loose 25% of the trade and hurt them where they can feel the pain.

Wrong

European companies leave china too. Simply because the pandemic showed the negative aspects of globalisation. Trade lines stopped, delivery delayed and so on