Did you check how much of Vietnam's industry and exports are actually deriving from Chinese investments/China-HK owned manufacturing plants?
Is that something special ?? CN's govt is worrying when more and more companies (including CN coapnies) quiting CN and move to VN.
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Chinese companies moving to Vietnam keep quiet on trade war to avoid wrath of authorities and staff
He Huifeng
16 May 2019
Chinese state media may have launched a
fierce propaganda campaign, placing the blame for the trade war squarely at the feet of the US government. But many manufacturers in China are keeping their heads below the parapet, for fear of reprisals from both inside and outside the country.
Interviews reveal that many factory owners and operators feel that they are caught in the middle of forceful rhetoric from both sides in the trade war. And rather than face direct retaliation from officials, workers and suppliers in their home market, they are deciding to keep their counsel.
Those companies that plan to move production out of China to avoid US tariffs and preserve their US business face a particularly delicate balancing act.
“
Manufacturing exporters that are thinking of relocating face more difficulties and higher costs than those that already moved out over the past two years, so many of them are not willing to speak out,” said Liu Kaiming, head of the Shenzhen-based Institute of Contemporary Observation, which monitors working conditions for hundreds of Chinese contract manufacturers.
“To relocate, they have to handle very carefully the plans for lay-offs and compensation for workers, the reaction of suppliers, the problem of stock price fluctuations in large enterprises, and so on. They have to keep all this low profile,” he said.
“Once the news of a relocation is released, various rumours may crop up that are not favourable to the company,” Liu added. “Now that the trade war has escalated, the risks are even greater. Even though more and more manufacturing industries are affected, most of them are afraid to express their views in public.”
Some manufacturers had hoped that keeping a low profile would allow them to fly below the radar and thereby avoid further trade war tariffs.
“Last year, shoes were not on the last list of tariffs. We were very low-key and did not voice [an opinion] on any trade war topics, fearing that [US President Donald] Trump would realise and target our industry,” said a senior executive with one of China’s biggest original product manufacturing facilities, which makes shoes for several major brands.
“But what Trump is doing now is making everyone panic, especially the smaller firms,” Zhou added.
Companies are also fearful of growing hostility from local governments in China, should they announce their plans to relocate. Officials do not want to lose the tax revenue, nor the employment the factories bring to local communities.
Chinese state media may have launched a fierce propaganda campaign, placing the blame for the trade war squarely at the feet of the US government. Interviews reveal that many factory owners and operators feel that they are caught in the middle of forceful rhetoric from both sides in the trade...
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asiatimes.com
www.fibre2fashion.com
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