|The low cost of China's coatings industry is also one of the main reasons for the transfer of manufacturing to Southeast Asia|
|Release time: 2014-6-26|
Recently, Nippon Paint Southeast Asia Group has started to construct a third coating plant in Yongfu Province, North Vietnam, with a construction area of 6 hectares (60,000 square meters). The factory mainly produces industrial paints, marine coatings and resins for the general automotive and motorcycle industries. In the next five years, the factory's total investment funds will reach 14 million US dollars, and it will recruit about 500 local workers.
In addition, Hanjin Chemical, a professional paint maker, has also recently started a factory in Hanoi, Vietnam, to produce professional paints for mobile devices. It is understood that the plant has a total construction area of 3,300 square meters and produces 2.2 tons of paint per day. The product is mainly used for the surface of mobile devices, such as the surface protection of mobile phones.
In recent years, the transfer of manufacturing industries including coatings to Southeast Asia has become the focus of attention from all walks of life, and the "flying southeast" phenomenon of manufacturing has been closely related to the gradual rise in China's production costs; "Nanyang".
Since the mid-1990s, Vietnam ’s economy has gradually entered a track of rapid growth, with an average annual economic growth rate of 8%. ADB predicts that Vietnam will become one of the fastest-growing economies in Asia in the future. The booming construction market has brought huge business opportunities to the Vietnamese building materials industry. The Ministry of Construction of Vietnam states that Vietnam's building materials industry has made considerable progress, with a growth rate of 17% each year, Vietnam has entered the ranks of the world's fast-growing building materials.
The fast-growing Vietnamese building materials market has also attracted the attention of international giants. The first well-known paint brand to enter the Vietnamese market is Nippon Paint. The brand is now the most well-known paint and paint brand in Vietnam. In 2004, the world's largest paint manufacturer, Akzo Nobel of the Netherlands, invested in a factory in Ho Chi Minh, Vietnam, specializing in the production of decorative paints. On June 6, 2006, the global marine and industrial protective coatings company, Danish Hempel Coatings Co., Ltd., officially completed the construction of a coating plant in the Vietnam Singapore Industrial Park near Ho Chi Minh City, Vietnam. The paint factory will produce coatings for shipbuilding, chemical, steel building and other fields, especially ship coatings.
In addition to exploring the wider markets of Southeast Asian countries, seeking lower costs is also one of the main reasons for the shift of manufacturing to Southeast Asia. "Compared with Southeast Asian countries, China ’s average labor cost is much higher; in addition, with other pressures such as fluctuations in the exchange rate of the RMB, rising raw material prices, and increased environmental protection costs, it is more difficult for Chinese coatings manufacturers to make money. Southeast Asian countries have objectively become investment depressions for foreign paint companies' industrial transfer. "An industry insider said that compared to China, ASEAN countries have cheaper labor and land prices. For example, in Cambodia, the wage cost of a production line worker is about 400 yuan, and it does not include food and accommodation. At the same time, the price of land is only $ 1 per square meter, which is very attractive to labor-intensive enterprises.
In addition to production costs, the demand for industrial supporting markets in Southeast Asia is one of these factors. "We have established factories to supply paint materials to Samsung Electronics in Vietnam and other consumers in Southeast Asia," said Choi Jeonggu, executive director of Hanjin Chemical. According to foreign media reports, Samsung Electronics Group invested $ 2 billion in the construction of a plant in northern Vietnam, a move aimed at further expanding its production base in Vietnam. It is understood that Samsung Electronics Group mainly produces mobile phones, digital cameras and notebook computers, and this also requires related supporting materials, so coatings have market demand.