Vigilance: Vietnam manufactures Internet (US-tech CEO reviews)

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Vietnam made to replace China?

The comments came in August 2006, along with an article in the Los Angeles Times entitled "Made in China", which began to give way to "Made in Vietnam", and began to draw no small controversy around the world. Chinese manufacturers are still in an irreplaceable position, despite the firm's strong belief that relatively good infrastructure, relatively complete industries and supply chains, and the vast land and personnel advantages of mainland China. However, not being replaced does not mean that China's manufacturing share in the world will not be eroded, and that, after Vietnam's entry into the WTO, the advantage of its subsequent dominance is combined with its emphasis on Internet applications.

Can foresee that Chinese network business and Vietnam Network business will be close to the Internet, the brave wins, the domestic SMEs in addition to maintain the "optimistic" mentality, whether in the "Chinese create" or in the network marketing, whether more need some "live ammunition" armed preparations?

Voice: American lawyer Weki: Americans cannot believe there is a cheaper place than China.

Baidu chairman and CEO Robin Li: China's internet penetration rate is lower than Vietnam, energy is far from being played out.

Behind the scenes: background: Manufacturing cost Advantages Challenge China

Vietnam is already the second fastest-growing Asian economy, after China. Behind the astonishing pace of growth is the influx of global manufacturers who have been looking for a low-cost manufacturing base to replace China. These manufacturers include the Intel and lingerie brands "Victoria's Secret" (Victoria ' Ssecret). Intel is building a chip-seal factory in Ho Chi Minh City, where it buys casual clothing. In addition, Panasonic and Yamaha also built factories in the Hanoi Industrial Park. Canon is building the world's largest inkjet printer plant in the north.

Earlier this year, workers ' strike in the export processing zone of the bell, including the Danuvina factory, was in place. The result of the strike was a government order to raise the minimum salary by 40% to $55. Still, the overall cost of manufacturing in Vietnam is still 35% lower than in China. The textile, footwear and toy processing industries are China's dominant projects, but Vietnam attracts a large number of manufacturers and buyers to Vietnam with lower cost and preferential terms, and direct competition with China's coastal areas. (Source: Beijing News)

Background two: The Rivals of China's internet business

At the beginning of 2008, Vietnam's largest e-commerce platform ECVN (www.ecvn.com) will formally charge its members.

This was born in 2003, by the Ministry of Foreign Trade, the establishment of E-commerce platform, in the beginning of the announcement, in 2007 before the end of all the services provided by its members will be completely free. In fact, this long established fee period is the Vietnamese Government in the whole of the Vietnamese economy is a move-to the "Vietnam made" to the world, E-commerce is an essential booster.

The first is the support of the Vietnamese government. 2005, the Vietnamese Government to adjust the strategy, and the development of the 2006-2010-year phase of the overall plan of electronic commerce, as well as the introduction of the Electronic Transactions Act and the Trade Law (Amendment) and other laws and regulations. The 2006-2010-year master plan for e-commerce development proposes the clear objective of Viet Nam's E-commerce: by 2010, Viet Nam achieved 60% of the large enterprises by business-to-business transactions, 80% of small and medium-sized enterprises were traded by business on a commercial or business-to-business basis, and 10% Households shop online in either a consumer-to-consumer or a way, all tenders for government procurement must be posted on government websites.

Vietnamese Internet users are also growing, with the support of the Vietnamese government. Although the Internet has entered China 3 years before entering Vietnam, China currently has the 2nd largest number of Internet users in the world, 9 times times more than Vietnam, but the current number of Internet users in China is only 10.9% of the total population, and Vietnam has reached 18.5% per cent.

In addition, in 2001-2005 years, Vietnam's GDP average growth rate of 7.51%, after China. In the first half of 2007, Vietnam became the 150th full member of the World Trade Organization, the growth rate reached a new high, about 7.9%, some experts even believe that Vietnam's macroeconomic stability, economic growth in the next 5 years will be more than 9%. At the same time, after Vietnam's accession to WTO, Some of the Chinese manufacturing industry has caused a certain impact, especially in the clothing, footwear and other light industrial products.

More importantly, "Vietnam made" has attracted wide attention from global investors and world buyers, although Vietnam and China have similarities in labour-intensive industries, but Vietnam is clearly better at the low cost of labour. A Tianjin Steel pipe trader recently told the author that he was preparing to move his foreign trade company to the industry and trade Enterprise, and Vietnam has become the first choice for its plant. When asked why roamed, despite the economic advantages of Tianjin's Bohai Rim, went to a foreign country to build a factory, the trader asked: "Is Vietnam's geographical advantage poor?" In Vietnam, a worker's one-month salary is less than 100 dollars, does Tianjin have it? ”

Now, with the obvious policy support of the Vietnamese government, the high popularity of the internet, the steady growth of Vietnam's GDP, the low-cost advantage of Vietnam's manufacturing, and the multiple environmental impetus of its accession to the WTO, Vietnamese enterprises are increasingly determined to enter global trade through the Internet. According to the Vietnam Ministry of Commerce E-commerce Department of Vietnam more than 1100 small and medium-sized Enterprises survey results show that, of them, 40% of enterprises have set up their own web site, 92% of enterprises to open Network connectivity, 81% of enterprises have used broadband.

Although Vietnam's biggest e-commerce platform, ECVN, is still quite immature compared with Alibaba, it is conceivable that Vietnam's small and medium-sized enterprises already have the conditions to fully enter the online trade, and once these "Vietnam-made" with a lower cost advantage are poured into the internet, Companies in China that have just climbed into the web are under threat, especially those that are still taking advantage of "made in China" to get away with the "China Creation" dilemma.

Expert comments:

Zhao Xinjun

U.S. technology founder, Foreign Trade network, trading partner Network CEO, China E-commerce Association Foreign Trade E-commerce Development research experts, China Business-to-business Research Center invited experts, 9 years of experience in foreign trade e-commerce.

Despite the current changes in the global trading landscape, Chinese manufacturing has also faced some pressure from internal and external factors such as rising raw materials, appreciation of the renminbi and rising labor costs. But I personally have confidence in China, I believe that Chinese manufacturing in the next 10 years will also maintain a certain growth and vitality. We do have some challenges right now, but I believe we also have some new opportunities at the same time, first of all, I personally think that Vietnam is made or made in India, our Chinese enterprises are not really facing these external competitive factors, or the self-improvement of Chinese enterprises, we need in the product, management, And the change of business strategy, what we need to do now is to face the challenges of both inside and outside. Secondly, enterprises through net to explore the international market, whether Chinese enterprises or Vietnamese enterprises, through our years of service in China's foreign trade enterprises to observe e-commerce, Chinese enterprises now lack of use of e-commerce to explore the international market awareness, now our Chinese enterprises need to do is how to determine their own business strategy, At the same time, their own business strategy and network marketing combined, each enterprise according to their own long-term development strategy, according to their own advantages, combined with the target market, Target customers, competitors to formulate a long-term enterprise's own overseas Network marketing program. We can no longer stay in the thought that in some sites to do an ad, to join a member is E-commerce, we should be from the level of Internet advertising to do business since the real long-term e-commerce planning, rather than what others do? What are we going to do? If this is the network promotion, I think our Chinese enterprises do not do. Vietnamese enterprises to surf the internet, the global buyers are no longer just focus on made in, I think we can change their own at the same time, could become a crisis for business opportunities, take the initiative to go out, not only in their own doorway some dozen made in the brand platform to promote their own, We can also go to foreign competitors, the initiative to compete, to borrow ship to sea! This is more than we put a lot of energy and financial resources in their own doorstep and many homogeneous Chinese enterprises to carry out vicious competition better.

(Source: E-commerce world)

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