Home > Company News

US manufacturing plummets 12,000 jobs! US companies still reluctant to manufacture in China after production transfer to Vietnam

Views : 690
Update time : 2020-01-16 01:36:00
In recent years, "Made in Vietnam" has received a lot of attention in the international market. Due to the country's rapid economic development and low labor costs, many overseas companies have invested in building factories. For a while, Vietnam was also called the "next world factory". But in fact, after going to Vietnam for production, many companies have begun to complain that there are still various problems with Vietnamese manufacturing.

According to British media reports on January 15, previously, an American bicycle manufacturer decided to transfer its electric bicycle production business to Vietnam in order to circumvent US charging policies, while the company's production was mainly concentrated in the Chinese market. However, when manufacturing in Vietnam, due to the low work efficiency of the workers, the company had to recruit Vietnamese staff from China to train Vietnamese employees, and it also needed to purchase parts from China, Japan, and South Korea. Production burden.

Not only that, another American company also tried to relocate the production line from the Chinese market to the local market. But after weighing, the US company found that building a factory in the United States would double the cost of production in China, and even exceed the fees charged by the United States for imported products. More importantly, the Chinese market also has more than 300 million parts, including tires, seats, and handlebars, etc., which account for about 60% of US companies' parts imports. In other words, even if American companies shift production lines away, it is difficult to get rid of the Chinese market.

In addition to the bicycle industry, even the American giant, Apple, is having a hard time putting down its business in China. As we all know, in recent years Apple and its foundry Foxconn have been trying to transfer production lines to other countries such as Vietnam and India. Earlier last year, Apple began trial production of Airpods in Vietnam. But last month, Apple added another Chinese supplier to produce Airpods pro for it. It can be seen that although Apple has set its sights on Vietnam, at the same time it has not relaxed its business in China.

Not only that, it is understood that the current factories in Vietnam are already overwhelmed. It is expected that overseas companies will return to the Chinese market after the Vietnamese market has suffered setbacks. And precisely because many American companies insist on staying in the Chinese market for production, the American domestic manufacturing industry has also shrunk sharply in recent time. Data show that the US manufacturing industry lost 12,000 jobs in December 2019.
https://www.infignos.com/templates/updatelistingnow.cfm?email=ryanlee901213@gmail.comShenzhen Kangda Precision Manufacturing Co.,Ltd.,Machining Manufacturer,Shenzhen,FL