Rising labor costs has forced many Chinese, textile and garment manufacturers to shift their units to Vietnam. The average monthly salary of a filament weaving worker in China is as high as 4,000 yuan based on an eight-hour-a-day system, while that of a worker in Cambodia is only 600 yuan for working 12 hours every day.
Many young entrepreneurs are transferring their material manufacturing capacity to an industrial park in Vietnam. Vietnam’s textile and garment sector has seen fast and sustainable growth in the past few years. The country’s advantages are: the investment capital required is small; a quick payback period because of short capital turnover; lots of preferential policies from the state; and a large domestic consumption. There is a vast pool of young, skilled Vietnamese workers willing to work for low wages.
The Vietnam textile and garment industry is expected to grow 12 to 14 per cent a year, provide employment to 2.75 million people in 2015 and three million people in 2020 and with export revenues of $18 billion dollars in 2015 and $25 billion dollars in 2020.
On the other hand, China's manufacturing industry is less attractive to foreign investors because of the appreciation of the yuan.
