Increased Production Costs In Southeast Asia

According to media reports, a few days ago, under the pressure of workers' strike, the Ministry of labour of Kampuchea announced that the monthly minimum wage of the garment industry increased by 25% to 100 dollars, but the workers in the industry were still not satisfied with the requirement that the minimum wage would rise to 160 dollars per month. After consultation, a number of shoes and clothing manufacturers in Kampuchea are about to adjust their monthly salary from 80 US dollars to 100 US dollars.

Because of the low labor cost and rental cost, more and more textile enterprises in China choose to build factories in Southeast Asia. Recently, Lu Tai textile Limited by Share Ltd announced that it plans to invest $8 million to build a new annual production of 3 million shirts processing plants in Kampuchea. It is understood that enterprises such as Lu Tai have set up factories in Southeast Asia. Since 2004, in the process of China's manufacturing industry moving out gradually, there are nearly 200. Clothing enterprise The production base was built in Southeast Asia.

Senior light industry researcher Xiao Xiao bear In a recent interview with the media, it was pointed out that most enterprises transfer to Southeast Asia value their low production costs, but the level of Labor Technology in Southeast Asian countries is not high, and the management is difficult and the production efficiency is low. In addition, they have to bear the hardship of "strikes" in these countries.

At present, Southeast Asia The voice of the state to raise wages is increasing, and the attraction for enterprises to invest and build factories will be greatly reduced. The number of Chinese brands moving to Southeast Asia is bound to decrease. Insiders say that because the time lag of rising labor costs has been gradually shortened, the transfer of Chinese brands to Southeast Asia is no longer significant.

The reporter understands that the world's largest shoemaker, Baocheng industrial Limited by Share Ltd, which is the world's largest manufacturer of sports brands such as Nike and Adidas, is moving some of its production lines to Southeast Asian countries such as Indonesia and Vietnam. This time, Kampuchea's wage increases will increase the production costs of Baocheng in local factories.

"With the increasing demand for labor costs, the cost advantage of Southeast Asia will no longer be. However, enterprises that have built factories in Southeast Asia will not turn back to China in a short period of time. These enterprises have been basically stable in Southeast Asia. Although labor costs have increased, they are still lower than domestic ones. " Xiong Xiaokun said.

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In recent years, the RMB has continued to appreciate, and many domestic export oriented enterprises are under heavy pressure. In turn, the depreciation of the renminbi will naturally give these enterprises a chance to breathe.

In these export oriented enterprises, textile and garment enterprises undoubtedly occupy a large proportion. For many textile and garment enterprises that are devoured by foreign exchange links, the depreciation of the renminbi will be one of the most direct means to stimulate their growth.

Yesterday, A shares of the textile and garment sector, which was stimulated by the short-term devaluation of the RMB, was agitated. Nearly 90 stocks rose in the sector. At the close, YOUNGOR, Pathfinder, leading shares, Shenda shares, meltier and other stock trading companies, Huafu color spinning, Jiaxin silk, Jihua Group, Jia Linjie and so on rose more than 3%, the overall growth rate of the plate reached 3.96%, is one of the strongest trends in the two cities yesterday.

According to the data of flush capital flows, the net inflow of textile and clothing sector yesterday was 1 billion 298 million yuan, second only to three sectors, such as computer application, real estate development and electrical equipment.

From the specific point of view, institutional funds for textile and clothing plate targets are also favored, such as Pathfinder and wedding bird. The public information on the day's transaction showed that the pathfinder was able to win the support of the four major institutions. The total purchase amount was 97 million yuan, accounting for 13% of the total turnover. There were two institutional seats bought by the wedding bird, and the purchase amount was 89 million yuan and 36 million yuan respectively, accounting for 34% of the total turnover of the stock.

Analysts believe that although the current external market downturn, the RMB short-term depreciation may not soon bring obvious incremental orders for textile and garment companies, but the export costs of related enterprises will still be significantly released, which is still good for the textile and garment sector.