Was It a Happy Thing to Know that Nike Shoes Were Made in Vietnam

There was no connection with "Manufactured in Vietnam", although the largest production base of Nike was Vietnam. It ought to be realized by us that enterprises in China have transferred to domestic brands from imitation.

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. There was also another consideration, which was the environmental cost.

A virtual modality of pollutants transfer existed in the trade of foundry. This virtual form of pollutants came from the three industrial wastes, which were known as waste water, waste gas and solid waste that were produced and emitted through the process of manufacturing foundry products. These pollutants were shifted to the export country that manufactured the goods by the import country that enjoyed the goods, and then became a hidden cost behind the Chinese foundry trade.

It was pointed out by some scholars that in exchange for foundry trade prosperity and GDP prosperity at the cost of low-wage for workers and the environmental costs did not represent the real national wealth and economic prosperity, but represented a kind of "immiserizing growth". 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. These foundries were spread in Asia areas, such as China, Vietnam, Indonesia and other places. From 2005, Winterthur Group who held Nike's 5.5 percent of production switched a lot of 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. Furthermore, in order to set up a new factory in Vietnam, more than one thousand dollars were invested by the company.

Just in 2005, the world's largest OEM Basoche Group of Nike was also increasing rapidly on its production capacity in Vietnam. Within the years that followed, there was an increasing investment on Vietnam that was done by Winterthur and Basoche. It was thus clear that the the so-called Nike shoes were manufactured by Vietnamese was only the method that Nike's foundry enterprises transferred its capacity to Vietnam for the sake of cheaper costs. There was no inevitable connection between this thing and Vietnam itself on how to improve its production ability. Enterprises in China have transferred to domestic brands from imitation, and there was narrower gap between themselves and other international brands, such as Nike.