According to Taiwan’s “Business Times”: In order to reduce costs, the textile industry has moved production bases overseas. Affected by the global financial turmoil, some manufacturers have been subject to exchange rate adjustments and increased exchange losses; denim major Nianxing has shifted the focus of its production base from Central and South America moved to Southeast Asia, and exchange losses increased from 0 in 2007 to more than 80 million yuan in the first three quarters; Nanfang and Juyang, which have factories in Vietnam, both suffered exchange losses of 40-50 million yuan.
Since Nicaragua’s regime change, in order to protect workers and continuously raise wages, Nian Xing began to expand its garment factory in Taiping Province, Vietnam, at the end of 2007.
Affected by the sharp depreciation of the Vietnamese dong in 2008, according to the financial statements of Nianxing in the first three quarters of 2008, exchange losses were 82.45 million yuan, which was much higher than 0 in 2007.
China’s implementation of the Labor Contract Law has greatly increased labor costs. Coupled with the sharp appreciation of the RMB, Taiwanese textile industries that require a large number of workers have set off a wave of factory relocation. Nanfang and Juyang have successively expanded their production bases in Vietnam.
Namtex’s Vietnam factory has domestic sales, accounting for more than 20% of the total. Affected by the sharp depreciation of the Vietnamese dong in 2008, the exchange loss in the first three quarters of 2008 was 46.88 million yuan, excluding the financial asset evaluation loss of 31.77 million yuan, which was higher than the previous three years. More.
Juyang, a leading domestic garment OEM that has gradually increased its orders for Vietnamese factories, suffered an exchange loss of 52.19 million yuan in the first three quarters of 2008, and a financial asset appraisal loss of 6.2 million yuan, which is also a historical high.
