VIETNAM - Many Chinese furniture manufacturers are relocating their manufacturing operations to Vietnam in an effort to deal with rising domestic labor costs, says Gao Ziu Zhi, chairman of China's Tianjin Furniture Association.
Zhi says Vietnam offers lower labor costs and tariff reductions brought on by a multitude of free trade agreements. Most of the companies looking to relocate are large-scale and possess major export markets.
“Vietnam is a promising market for Chinese firms to expand operations in the fields of furniture manufacturing, wood processing, and bike making," says Geng Wei, chairman of the Tianjin Foreign Economic and Trade Promotion Association. Chinese firms are interested in co-operating with Vietnamese counterparts to transport and import tropical agricultural products and fruits through official channels.”
Several Chinese companies have gathered at Vietnam Expo 2017 held in Ho Chi Minh City last week to explore the market. The expo, organized alongside with Vietnam Hardware & Hand Tools 2017, is a major trade promotion channel between Vietnam and other countries like China, South Korea, Japan, India, and Singapore.
China is the largest trade partner of Vietnam, while Vietnam is China’s ninth largest.
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