China's Household Electrical Appliance Enterprises In Vietnam: Progress Or Retreat

China's Household Electrical Appliance Enterprises In Vietnam: Progress Or Retreat

Recently, there are investment projects in Vietnam of Chinese listed companies have issued a public notice that due to VND depreciation and other factors, production and operations are subject to certain affected, but Vietnam's economic fluctuations limited impact on the business.

But things are not that simple. For some time, and under the pressure of rising costs of domestic investment in some of Vietnam

Home Appliances Enterprises continue to face financial crisis in Vietnam, has begun to think about their own countermeasures.

Significant increase in costs As human, geographical, and many other advantages, many home appliance business overseas Vietnamese to become the first choice for factories, but under the Vietnam joined the WTO in 2007 when the commitment

TV , Air conditioning , Washing machine Tariffs and other electrical appliances, 3-5 years to 25%. Therefore, in the past two years, in order to use Vietnam's low labor costs and avoid business against China's "trade barriers", Gree, Midea, Supor and other home appliances business has production plants in Vietnam.

However, as the Vietnamese economy of hyperinflation and currency devaluation, etc. The impact of household appliances production and operation of these fluctuations, but also ready to invest in Vietnam to Chinese household electrical appliance enterprises hesitant.

Midea Group Brand Director Dong Xiaohua said the United States and Vietnam, which have been aware of the financial crisis on the production base will cause a certain extent, the United States currently is the internal communication, for consultation, on the practical implications will also be specific assessment. Gree board secretary Liu Xinghao account companies are closely watching developments, but no specific measures.

Glanz Foreign Trade Administration Office of the Deputy Director Liu said that Vietnam's domestic economy is deteriorating more than expected, inflation VND depreciation, many foreign companies have lost confidence in risky now to invest in Vietnam, it suspended plans to set up plants in Vietnam.

Some experts pointed out that with the deterioration of the Vietnamese economy, labor costs become a big headache. After inflation, a substantial increase in cost of living of workers, and wages had not meet the daily needs of workers, in order to retain those skilled and capable workers, factory workers had to increase benefits and wages. Midea, Gree and so that, from the overall wage workers so far this year has risen by 10% to 20%.

The other hand, the financial crisis, affecting the purchasing power of the local market, companies face declining sales, therefore the risk. Experts in inflation, in addition to food and other necessities, the demand for other products will decline, sales will decline, the currency is not stable in the context of the inevitable decline in consumer appliances.

Or look for another way to adjust

retreat While most appliances that Vietnamese enterprises have not much impact of economic shocks, but beautiful,

TCL And Supor are told reporters that there is no short term plans for additional investment to Vietnam.

Industry, said the Vietnamese economy to now unknown, the parties certainly have some impact on investment, the investment is expected to slow down or stranded is quite normal, after all, for investment, the economic situation of uncertainty will have a significant degree of Investors around the decision-making.

Head of a household electrical appliance enterprises pointed out that Vietnam's current economic crisis, mainly in land prices soaring, labor tensions, VND depreciation, etc., and the Vietnamese economic crisis may also continue to spread, its foreign debt amounts to more than 240 billion U.S. dollars, accounting for GDP, 30.2%, in this case, the household electrical appliance enterprises set up plants in Vietnam to give up the plan.

Once as early as 2004, China announced to enter the South-East Asia's domestic appliance giant Gome chain, and now because of the financial crisis in Vietnam are becoming more cautious. Gome's spokesman Ho Yang Qing said the United States and overseas markets shop State Plan "strategy is there," said Southeast Asia is also a long time ago, and shop is sooner or later, but when the problem into an opportunity, in yellow Glory seems, "Now do not go shop early, not late to open in 20 years."

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