Vietnam Incident Hits Global Supply Chain Footwear Industry Pressure

< p > the present situation is like an "Asian spring".

China and < a href= "//www.sjfzxm.com/news/index_p.asp > Vietnam < /a > are facing a dangerous confrontation in the South China Sea.

As Philippines sues China in the International Court of justice, Chinese ships regularly harass Philippines ships.

Thailand's military announced the implementation of the military control law. In some people's eyes, this is equivalent to a "soft coup."

North Korea is also unwilling to lag behind. North Korean leader Kim Jeong-eun (KimJongUn) is making a noise for nuclear tests.

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"P", which is controlled by Japan, but China claims to have sovereignty over the Senkaku Islands in the East China Sea (SenkakuIslands, China calls the Diaoyu Island and its affiliated Islands) no longer occupy the hot news position, which highlights how complex the security environment in Asia has become.

In the great part of 2013, with the determination of the Chinese ships and planes, the disputed islands were regarded as the easiest place to wipe out guns in Asia.

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< p > geopolitical tensions not only challenge governments, but also create trouble for multinational corporations, which have a series of products to rely on the production of Asian countries, from MickeyMouse T-shirts, iPad to Adidas (Adidas) sports a target= "_blank" href= "//www.sjfzxm.com/" > shoes "/a".

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Last week, Vietnam launched an anti China protest against China's oil drilling platform in the vicinity of the controversial P ParacelIslands. The protesters looted many factories.

But they also caused many factories that did not looted by violence to suspend production, amplifying the impact of this on the global supply chain.

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Foxconn, Taiwan electronics manufacturer Foxconn (Foxconn), which manufactures iPhone, iPad and other products for Apple (P), has been shut down for 3 days due to precaution.

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P, Nike, and Adidas, the world's second largest sports shoes manufacturer, YueYuen, has also been closed down. "Nike"

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Supply chain is not the first time p is facing pressure.

In 2011, northeastern Japan suffered catastrophic tsunamis and earthquakes, resulting in heavy casualties and great impact on people's psychology.

After the shock, people immediately realized how fragile the supply chain was, because many of the household businesses that were not household were unable to supply some key electronic components.

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Less than P, that happened again later that year: electronic components and auto parts supply center Thailand suffered 50 years of flooding.

At that time, computer manufacturers couldn't get hard drives, and auto makers such as Honda (Honda) were forced to cut production worldwide.

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< p > natural disasters and man-made disasters force enterprises to manage the supply chain more flexibly.

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"P", for example, WAL-MART (Walmart) said Vietnam's protests did not affect it because it was purchased from 50 countries.

But when considering where to produce or where to buy, retailers are increasingly facing trade-offs.

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< p > Yuyuan is a good example.

Weeks before the outbreak of Anti China riots in Vietnam, Yuyuan was forced to shut down a large factory in mainland China because 40 thousand workers launched the biggest strike in China in decades.

Yu Yuan pferred the production of Adidas products elsewhere, resulting in new problems in Vietnam.

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< p > the strike highlights a growing problem faced by manufacturers: China is no longer a low-cost manufacturing sanctuary.

Wages are rising rapidly, and workers' enthusiasm for strike has also increased.

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< p > the rapidly rising cost of China has prompted some factories, especially labor-intensive "a target=" _blank "href=" //www.sjfzxm.com/ "textile" /a "factories to move to Bangladesh and other countries.

But last year, after the incident of Bangladesh's RanaPlaza, which killed more than 1000 workers, the move has caused reflection.

Some factories are considering moving to Kampuchea, but wages there are also rising, and labour riots are also common.

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Since the military government of Burma has given way to civilian government and democratic system, it has long been praised as the last bastion of low-cost manufacturing (except for North Korea), but most manufacturers say that Burma's development in the next few years will be suppressed because of its backward infrastructure.

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Josh Green, founder of Panjiva, which tracks Global trade and procurement information, said that China is no longer a natural choice, but it is difficult for enterprises to find ways to deal with this situation. JoshGreen, P

"There are not many good alternatives to Chinese people."

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(P) if Narendra Modi (NarendraModi), as Prime Minister of India, can improve the bureaucracy of his own country, India may be expected to play an important role in the global supply chain.

Considering that India has a large number of young labor force, it should be a natural supply chain.

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