Did You Support Nike Shoes to Be Manufactured in Vietnam
Only less profit can be gained by domestic companies through doing foundry for international brands, however, payment of laborers is likely to be lowered when foundry enterprises want to live.
There was no connection with "Manufactured in Vietnam",
although the largest production base of Nike was Vietnam. We should be aware of one thing that Chinese enterprises have been changed from imitation to local brands.
In fact, it was just because the domestic enterprises played a foundry role for international brands, including Nike OEM, and enterprises can only get a small profit, so companies did not have enough profit margins to digest any cost pressures that were brought by wage growth. Conversely, the foundry business needed to lower the remuneration of workforces, and the rights and interests of workforces would be sacrificed as a cost if the enterprise wanted to maintain survival. The cost of environment was regarded as another price that you have to notice.
A virtual modality of pollutants transfer existed in the trade of foundry. During the procedure of producing OEM products, three industrial wastes were likely to be produced and omitted, and that was to say waste water, waste gas and solid waste, and these three wastes would result in this kind of pollutant with virtual form. As for importing countries, these contaminants were enjoyed and then were moved to the exporting countries that gave production to these goods, and these pollutants also turned out to be a sort of invisible cost behind the foundry trade in China.
Some scholars stated that through sacrificing workers' low salary and environmental costs to exchange for the prosperity of both foundry trade and GDP can be described as a sort of "immiserizing growth" rather than the national wealth and economic prosperity in its true sense. This type of "sweatshops" mode did not have sustainability. When Vietnam was playing the role as Nike shoes' foundry base, Chinese enterprises have headed for the stage of proprietary brand. Although Vietnam has become the largest production base of Nike shoes, it has nothing to do with "Made in Vietnam".
According to media reports, Nike global sports shoes had more than one hundred contract foundries, including Basoche, Winterthur, Ting Lu, Kong Wing and other Taiwanese businessmen. In China, Vietnam, Indonesia and other places of Asia, there scattered these foundries. Five point five percent production of Nike was grasped by Winterthur Group, and began from the year of 2005, the Company turned many Chinese orders to Vietnam. At the same time, there were four processing factory production lines in Vietnam, and they have already been expanded on a large scale. In addition, the company also invested over ten million U.S. dollars in Vietnam to build a new factory.
In the year of 2005, Basoche Group, which was the largest OEM globally of Nike, and in Vietnam, its capacity got rapid enhancement as well. In the ensuing years, Winterthur and Basoche have increased their investment in Vietnam. It would be visible that we can explain the so-called Nike shoes were made in Vietnam in this way, which was just Nike foundry enterprises' purpose to shift its capacity to Vietnam for lower production costs. This can not necessarily associate with Vietnam's action on enhancing its manufacturing capacity. Chinese enterprises have changed from imitation to local brands, and the gap between Nike and other international brands was narrowing.
