Three industries u mentioned, also producing in many developing nations specially in ASEAN nations.
1. Many years ago we used Made in Thai HardDisk, Made in Malaysia Intel's CPU, Made in Philippines DVD.
2. All developing nations producing garment, textile.
3. All developing nations producing shoes, leather.
Not usual and Chinese didn't burn factories (except shops). The main difference, is the big China market can attract those foreign investors, and better internal economy situation.
Because you show strange in this, I must say that " I based on real fact and comment as a FTA analyst ...
Before and after TPP joining ( in or outside of TPP ) ... are two totally different phases.
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Footwear sector takes big steps
HA NOI (VNS) — Domestic and foreign-invested enterprises (FIEs) in the leather and footwear sector continue to show impressive growth, making Viet Nam the second largest global exporter of footwear.
The Viet Nam Leather and Footwear Association (Lefaso), said that in the first six months of the year, the nation's footwear exports jumped 17.8 per cent year-on-year to US$4.8 billion and the value is expected to surpass $11 billion by this year-end, radio The Voice of Viet Nam (VOV) reported.
The global demand has risen mainly due to the economic recovery in the US and the EU, said the association, and the free trade pacts expected to be signed will give a further impetus to Viet Nam's leather and footwear exports.
The Trans-Pacific Partnership (TPP) Agreement and Viet Nam-EU Free Trade Agreement (VEFTA) are likely to be signed later this year or early next year, and the optimism it is generating has resulted in huge investments in the leather and footwear sector.
Numerous projects awash with foreign funding are being set up throughout the country in these sectors, with state-of-the-art technologies, and modernised and streamlined facilities that are adding value to their production processes.
Suppliers of imported raw materials are also making significant investments in the sector, carving out a niche in the Vietnamese market, while aggressively looking for opportunities to tie-up with Vietnamese partners.
They are unanimous in the view that once the TPP and VEFTA come into effect, 2014 would be a crucial year to lay the foundations and reap the benefits of increased trading activities.
The opportunities are there and it is up to the domestic businesses to grab them, Tran Vi Co, Director of Hien Dat Exhibition and Trading Services Company said.
Lefaso President Nguyen Duc Thuan emphasised that the increase in use of domestic material has generated a lot of interest.
The leather sector has, till now, used only around 30 per cent of its domestic materials, but this will increase significantly in the future, Thuan said, adding the country is developing two leather industrial zones in two main regions.
Furthermore, smaller industrial zones in key regions are in various stages of development to produce other materials, such as synthetic leather, shoe soles, and decorating materials.
HCM City is going through a revolutionary transformation as a centre for the supply and exchange of raw materials for the whole sector.
The sector has set a target of using 100 per cent domestic tanned leather by 2020, and 50 per cent of synthetic leather and 70 per cent of shoe soles by 2050, Thuan said.
Currently, Lefaso has devised measures to help the sector develop sustainably in the future. Training is one of its priorities.
Accordingly, a human resource-training centre will be set up in the southern region in 2015. — VNS
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Footwear industry welcomes new development waves
Cập nhật: 11/07/2014 - 09:13
(VEN) - According to the Vietnam Leather and Footwear Association (LEFASO) in 2014, total export revenue of the whole industry is expected to reach US$14 billion. The target of Vietnam’s footwear industry in the next 10 years is to be listed in the world’s top 10 leather and footwear producers.
Rapid and stable growth
Director of the Light Industry Department of the Ministry of Industry and Trade (MOIT) Phan Chi Dung said there are 812 operating enterprises in the leather and footwear industry, attracting more than 624,000 laborers across Vietnam. Over 60 percent of production capacities are of those located in Ho Chi Minh City, Binh Duong, Dong Nai and Long An. Among them, footwear producers account for 63.5 percent, followed by producers of briefcases, bags and wallets of all kinds which account for 32 percent and the rest is tanned leather producers.
The leather and footwear industry plays a very important role in the development of Vietnam’s economy. It ranks third in terms of export revenue (behind mobile phones and garment and textile products). The total export revenue of leather and footwear products in the first five months of 2014 reached US$3.89 billion, a 21.19 percent increase compared with the same period last year. Along with export, the domestic market has also seen a rapid growth. In 2013, 130 million pairs of shoes were sold in Vietnam, posting a year on year growth of over 25 percent.
Lefaso's deputy chairman Diep Thanh Kiet said Vietnam’s major products like sport and canvas shoes are preferred in traditional markets including the US, the EU and Japan. Many domestic enterprises have developed production scales and affirmed its brands in the world market. For example, Thai Binh Shoe Investment JSC with annual output of more than 20 million shoes and four million briefcases earns export revenue of over US$400 million. Binh Tien Imex Corp or Bitis has annual export revenue of over US$150 million and occupies 30 percent of the domestic market shares.
Welcoming new development waves
According to General Secretary of the Vietnam Chamber of Commerce and Industry Pham Thi Thu Hang who is also a member of a World Bank’s research team about light industry development in Vietnam, the Vietnam’s leather and footwear industry has many advantages and opportunities for better development. That is the price competition in the word market and its products have been distributed to most big markets like US, the EU and Japan.
Vietnam has recently attracted a large number of orders from small and niche markets of the footwear industry. In the first five months of this year, exports increased sharply to markets like Finland up 152 percent, Chile 83.4 percent, Poland 71.5 percent and the UAE 58.04 percent.
In addition, the Generalized System of Preferences GSP, the Vietnam-EU FTA and the Trans-Pacific Strategic Partnership Agreement (TPP) will also create opportunities for export businesses in the near future. Now many Vietnamese shoe and handbag producers are actually just in the lower segment of the global supply chain. By joining the FTAs, Vietnam is attracting investors to pour investment in domestic material regions.
Specifically, a number of Chinese have opened factories in Mong Cai and Hoa Binh or two companies of Hong Kong also have partnered with Vinatex Investment JSC to develop the Rang Dong Textile Industrial Park project in Nam Dinh Province. Phan Chi Dung also said although massive investment waves have not been recorded, foreign enterprises have deployed their projects very quickly thanks to strong financial resources and they also pour investment to enjoy incentives and of course earn profits.
Enterprises in the footwear sector are always in need of large foreign currency volumes to import raw materials. Therefore, they need banks that could help them access sources of capital quickly, so that they could seize opportunities to develop production and business activities and compete more efficiently./.