China's SMEs to invest in the Vietnamese textile industry to explore the feasibility of

In the current profits of the domestic textile Industry gradually shrink, the dominant position gradually weakened, while Vietnam's textile and apparel Industry matures, labor-intensive, lower cost, an increasingly competitive situation, to set up plants in Vietnam to complete the labor-intensive traditional Chinese industries such as garment factories and other industrial transfer has become the first choice for the majority of textile enterprises.

Despite the financial crisis in 2008 and 2009, Vietnam's financial market turmoil, Vietnam's textile enterprises tend to be conservative management, yarn fabrics and other textile products in China for more exports will be affected, Investment in local Chinese-funded enterprises will also have a certain impact, but its impact is relatively limited efforts to invest in Vietnam's textile Industry still has some viability.

First, the advantage of analyzing the Investment environment in Vietnam
(An obvious geographical advantages, the Development of promising
Vietnam is located in the center of Southeast Asia, China --- the ASEAN Free Trade Area, the Greater Mekong Subregion, the North Bay Economic Zone in the Economic transition with three points, unique strategic position, the advantage is obvious, political stability, expanding opening up , preferential policies, and Laos, Cambodia, Thailand, the Philippines, Bangladesh, Indonesia and other countries compared to Vietnam is the best Investment choices.

With Vietnam's accession to WTO, Vietnam's textile and garment Industry has developed rapidly and has become one of the pillar industries in Vietnam, created a total of 2.2 million jobs, accounting for the total Industry employment, 35% since the reform and opening up, the Vietnamese government has gradually increased of railways, roads and other infrastructure Investment to accelerate the pace of construction, infrastructure construction to obtain a more significant improvement, greatly enhancing the speed of Vietnam's logistics, reduce logistics costs, making Vietnam's textile and apparel products in the international market competitiveness further enhanced. business conditions improve, the Investment preferential policies, so many countries, including China have set up factories in Vietnam, to Vietnam as an ideal place for industrial transfer.

(Two more preferential policies, administrative procedures quick and easy
Vietnamese Ministry of Industry to determine the mechanical manufacturing, electronics - information, automobile production and assembly, textile and leather garments - footwear industry can enjoy the five advertising, trade promotion, Investment and taxation incentives, including for textile and garment industry In 2009 the strong support given to the Vietnamese government issued a series of support measures, Investment, exports and other sectors to provide a variety of benefits, including textile and garment enterprises to export $ 1 subsidy for every 40 Vietnamese dong (1 U.S. dollar equals 17,500 more shield grants to help companies to maintain production and protect workers' employment stability; on clothing exports to the United States to give a 7% shipping subsidies, the Ministry of Finance is also studying the import of cotton from 10% to value added tax of 5% and so on. Meanwhile, the Vietnamese strategy that the Government plans to use 10 years, respectively, in 11 coastal provinces and cities in 11 textile and apparel built industrial park and will continue in the land, taxation preferential policies to attract foreign Investment.

Investment and import and export related procedures, particularly with regard to registration of contracts, temporary and fixed period of registration of imported goods, fixed the problem, the export of goods, sampling, rebates credentials verification and rebates, etc., to further simplify administrative procedures, to reduce costs to attract foreign Investment and promote exports.

(C investment costs and labor costs are lower
Vietnamese small and medium enterprises are small, a medium-sized capital investment of only 100-150 million U.S. dollars, the largest small business capital of approximately $ 1 million, the price of land in Southeast Asia is the most expensive past a price of 100 textile mills in Vietnam million VND or so, about $ 60,000. the financial crisis, the plant aggressively cut prices 40 percent, in the context of the increasing appreciation of the yuan, which will help Chinese enterprises to go to Vietnam to the acquisition of plant, so the current cost to set up plants in Vietnam low, small and medium enterprises in general, not the burden of upfront investment. In addition, the electricity was down 6 cents, to further reduce production costs.

Vietnam's labor-abundant and inexpensive, the monthly salary of about 100-150 U.S. dollars, the Yangtze River Delta, Pearl River Delta region of the half. Garment workers to pay, for example, monthly income Ningbo garment workers (working 8 hours a day) has increased to around $ 300, while the Vietnamese garment workers monthly income of only $ 150, Ningbo garment workers labor costs only about half And China's rising labor costs, so Vietnam has comparative advantage of low labor costs and if the garment factory open to Vietnam, both domestic and export, the cost will be significantly reduced, even then shipped back to mainland China sales, manufacturing labor savings enough to absorb the cost of the corresponding transport costs.

(D exports enjoy preferential policies for more international
Since the second quarter of 2010 from the Vietnamese textile and apparel has become Vietnam's largest export commodity in 2009, Vietnam's textile and garment exports of $ 9 billion in 2010 exports of $ 11.2 billion, an increase of 23.2%, apparel exports into the world top five ranks.

Vietnamese textile enterprises in Europe and America some of the customers are regular customers .2011 relationship with the EU in Vietnam will give priority to promoting Vietnam-EU comprehensive partnership framework agreement (PCA, Europe and the more free trade agreements (FTA) three aspects of cooperation and assistance mechanisms (referred to as "three priority ", Europe and other countries to give preferential policies for Vietnam Vietnam has a greater market advantage.

According to the Vietnam Textile and Apparel Association statistics show that in 2010 Vietnam's textile and garment exports to the EU 1.8 billion, an increase of 14% in the EU market share from 1.99% in 2009 rose to 2.02% in 2010 in the "three priority "after the implementation of market share will be further improved.

Vietnam's apparel exports to the United States is also growing. U.S. Department of Commerce statistics show that 10 months of 2010, Vietnamese exports to the U.S. about $ 12.3 billion, an increase of 20.3%, with apparel exports $ 5.0 billion, up 16%, an increase considerable.

Second, China's SMEs to invest in Vietnam's textile industry at favorable
1 can avoid anti-dumping investigations, to reduce trade friction.

Vietnam's export textile and garment industry is a major force in the national textile and clothing for more than 80% of total exports, set up plants in Vietnam, enterprises can strengthen trade between ASEAN countries, the production of clothing directly in the ASEAN national sales, on the other hand, enterprises can ASEAN as a transit point, Europe and the United States to avoid trade barriers.

China has surpassed Germany as the world's biggest exporter, in this case, the international trade protection against China will be increasingly frequent .2009 year involving Chinese products, trade friction over a hundred cases, involving the amount of about $ 12 billion, both more than doubled over the same period, China has suffered 15 consecutive years as the world's anti-dumping investigations than any other country, therefore, ASEAN countries, especially Vietnam, to transfer some of the labor-intensive industries, can avoid anti-dumping survey, to reduce trade friction with Europe and the United States. Links to free download http://www.hi138.com 2. to increase export of textile raw material, expand export of Vietnamese textile enterprises are export processing enterprises, but self-produced raw materials, much of the textile industry chain is relatively weak, although there are local raw materials in Vietnam, but not the number and variety to meet the needs of the textile industry in Vietnam, there is also lack of technical processes, so 100% of Vietnamese textile dyes and machinery and equipment, 90% cotton, 50% to 70% of garment accessories and other raw materials are imported, the import of raw materials, 70% to 80% from China, such as Vietnam, Nguyen Province, each year tens of millions of dollars to import textile materials, of which some from China, while prices of textile raw materials accounted for 80% to 90%, so Chinese enterprises to set up plants in Vietnam, the Vietnamese textile industry to expand production scale, can further promote and increase the export of textile raw materials and expand export .

3 can reduce production costs, enjoy a more convenient logistics channel. Since entering in 2011, China experienced a greater shortage of workers, even in rising wages on the basis of many factories it is difficult to hire enough workers, which indicates that , China's labor costs continue to rise, the comparative advantage of cheap labor is rapidly lost. At present, China is implementing the transfer of industries program, the transfer of traditional industries in eastern coastal areas to inland areas of western production, but the western inland region lack of appropriate facilities, relocation of textile and garment enterprises over, supporting the industry without a corresponding move, resulting in raw materials and spare parts, supplies, lack of these essential raw materials needed production from the eastern part of transportation in the past. the distance, the traffic is not developed, making the supporting materials logistics costs, increase the cost of textile and apparel products, thus weakening the competitive edge, while along the coast of Vietnam to set up plants, the industry shift to Vietnam, but has a greater advantage than in the western region, Vietnam can take advantage of convenient access to the sea to transport finished products to foreign countries, take advantage of cheaper labor in Vietnam resources and growing sales channels, will be sold in China's textile broader international market.

4. Can establish cross-industry chain and promote Economic cooperation and Vietnam, Vietnam hopes to strengthen the Vietnamese government and the Chinese provinces, local governments, as well as cooperation and exchanges between enterprises and technological learning. Vietnam has always attached great importance to the Development of the textile industry, while China Textile Industry Development a lot of experience, so the Vietnamese textile enterprises in China can hope to open plant in Vietnam, such as the Vietnamese co-production with raw materials, one can enjoy Vietnam's investment environment, it also brought to the Vietnamese textile raw materials and advanced technology and technology, so that SMEs can be the production of textile and apparel industry and trade Development in Viet Nam to set up distribution companies, such as the Vietnamese national settled in China - ASEAN Comprehensive processing zone (96 Haiphong Export Processing Zone, the formation of multinational corporations, do a good job Development of raw materials, raw materials, transportation, raw materials processing, transportation and sale of finished products in all aspects to ensure normal production and trade, establish a cross-border production and trade chain, which is conducive to expanding the visibility to ensure the normal development of resources of the normal supply and market access the formation of the Vietnam industry, markets, trade and interaction with the docking of talent, promote Economic cooperation and Vietnam.

In summary, the Vietnamese currency devaluation and severe inflation continued, the original comparative advantage of low labor costs played a discount in the case, in relation to our domestic inflation, appreciation of the renminbi and rising labor costs, increasing the pressure, Vietnam's textile and garment exports still has some comparative advantages of SMEs to invest in the textile industry in Vietnam is still regarded as a viable industry, the transfer of a good way to China's SMEs should seize the opportunity to visit Vietnam, site selection, set up plants as soon as possible, fully use a variety of preferential policies in Vietnam as soon as possible out of the current predicament.

Third, China's SMEs to invest in strategic analysis of the textile industry in Vietnam
First, a clear investment objectives, develop long-term development plan. Enterprises engaged in foreign investment, must first be clear what their goals are short-term profit or long-term open market operations. Most companies because the proportion of foreign investment, always hoping return on investment, they only consider the short-term income, the expense of long-term development objectives of the development, so easily lead to insufficient capacity for enterprise development, not only unable to expand market share, even the current market are likely to lose, so companies before investing in Vietnam in order to better their goals are, how much costs and benefits, there is no investment value, etc., according to the actual situation and the different stages of development, short-term goals and long-term goal, to get great business development.

Second, study the investment environment, choose the right partner in China's SMEs to carry out investment cooperation is more in depth should be carefully detailed market research and investment environment study, full understanding of Vietnam's foreign investment regulations and policies and investment environment, work hard good feasibility study, will be fully estimated the difficulties encountered, to avoid blind investment in the way of investments owned as much as possible to set up plants, such as joint ventures with factories in Vietnam, Vietnam partners respond to insight, seek reputable partner, pay attention to handling and the relationship between the partners and local authorities the same time to strengthen the investment risk prevention, according to the regulations permit foreign investment approval procedures, in order to avoid operational difficulties or financial loss.

Third, strengthen the independent Innovation capability and self-branding. Innovation, including R & D and Innovation in two aspects of the brand. SMEs should be well aware, are labor-intensive textile and garment industry, the lack of technical advantages, if he stubbornly insist on low-cost, low technology, low price of the old road, eventually will be increasingly innovative out of the market must rely on science and technology research and development, industry upgrading and independent Innovation for transit, in order to survive a long time, so even if set up plants in Vietnam, but also to strengthen the independent Innovation, technology development and innovation-based, well-organized production, fabric, style, development of auxiliary materials and other aspects new products, improve the added value to master intellectual property rights, in order to gain more favorable trade status and competitive advantage, to improve international competitiveness and risk-resisting ability to provide important support.

Fourth, there must be sufficient funds to prepare or full financing channels. Itself have sufficient funds to invest abroad is a prerequisite, the most prominent problem now is that SMEs lack of funds, loans and financing channels for small, resulting in market weak or difficult to develop the business bigger and stronger. lack of funds to invest directly affect pre-market research, market development, establish sales channels, organization of large-scale production, etc. Vietnam is a developing country's Economic strength is weak, the shortage of funds, Vietnamese enterprises and foreign joint ventures or cooperation, the majority of the land and plant investment, cash investment, the financing capacity of poor, so if SMEs want to invest in Vietnam, Vietnam can not rely on to solve cash flow problems, there must be sufficient capital accumulation, In addition to local banks for loans, financing needs in the country through various channels to obtain credit guarantees and financing services to address the question of money.

Fifth, strengthen staff training to improve the quality and capacity of managers. The majority of small and medium private enterprises, in use in the management of family management style, management and quality, management behind the lack of standardized management, the lack of foreign investment in long-term strategic vision and brand awareness, only consider how to recover the investment as soon as possible, do not pay attention to long-term business enterprise, therefore, invest in going to Vietnam, you need to cultivate a group with long-term strategic vision, a wealth of practical operational experience and familiar with international practice, with high English proficiency, strong communication skills and organizational ability of the compound management personnel, managers increase the quality and ability to establish quality win business philosophy. preferably one or two knowledge of Vietnamese people, can better communicate with employees in Vietnam and exchange in a timely manner to solve business problems, more conducive to improving production and management. Links to free download http://www.hi138. com