According to the China Ministry of Commerce official website news, Vietnam and the EU ongoing bilateral free trade negotiations are expected to reach a consensus in June 2015. Meanwhile, Vietnam is also involved in TPP negotiations.

It is reported that Vietnam's export products in Europe and America compete with China and Vietnam have a low cost advantage, Vietnam and the EU FTA negotiations reached will make exports duty-free to the advantage of superposition is bound to for the low cost manufacturing impact. But continue to compete in the low-end manufacturing with Vietnam and other countries, both unrealistic and contrary to the direction of the upgrade." China (Hainan) reform and Development Research Institute of public policy deputy director Kuang Xianming accept SMW reporters said, "China's manufacturing industry is facing pressure, Vietnam is not caused by, more is economic structure transformation and upgrading is needed to solve the problem."

Vietnam TPP negotiations to accelerate

The Vietnam economic times, April 9, reported: said April 8 of the Committee on international trade of the European Parliament President Bona Lange BerndLange, Vietnam and the EU is the important content of the negotiations on a free trade negotiations, is expected in 2015 June agreed. In addition, Vietnam is still accelerating negotiations to participate in TPP, said the signing is expected in 2015. According to the investment of Vietnam reported, after the signing of TPP, including textiles, a portion of the goods tariffs dropped by 17% now ~ 25% zero tariffs, Vietnamese enterprises will be more competitive, and Vietnam will usher in the second investment boom.

Vietnam official statistics show that in the export market, EU Vietnam's largest export market, Vietnam in March 2015 lost European export amount was 69.2 billion; Vietnam lost European main export products include a variety of telephone and parts, footwear, textiles and garments, electronic products, computers and parts. Followed by the United States, this year in March exports amounted to $6900000000.

And in 2013, the European Union is Vietnam's second largest trading partner, bilateral trade volume 242 million euros, the EU is Vietnam's largest export market, Vietnam to European exports of 2.1 billion euros, accounting for 19% of Vietnam's total exports. The EU is also one of the major sources of foreign investment in Vietnam.

In recent years, Vietnam due to the lower labor and production costs, to undertake a lot of the transfer of Chinese manufacturing industry. During the Spring Festival in 2015, CITIZEN and many foreign-funded enterprises will also move to Vietnam factories. With Vietnam and the EU signed free trade agreement, the EU will most of the EU product export tax exemption or tax, the price of its exports will become more prominent. While the Chinese and the EU has not started to talk about FTA, is still in the research phase.

"Past Vietnam of Chinese manufacturing industry is not a threat, but now Vietnam and China's industry growing homogenization of competition, Vietnam and the EU signed since the trade agreement and the signing of TPP, will make the advantage of superposition, of China's manufacturing industry will have a greater impact, worthy of attention." Bai Ming, deputy director of the international market research department of the Ministry of Commerce, said. Vietnam exported to the kinds of products, and the main products of China's exports to Europe and the United States overlap degree higher and have a cost advantage, Vietnam policy larger degree of openness, the business environment also in the continuous improvement, once the exported duty-free, exports to China will constitute greater impact.

Kuang Xianming, deputy director of the China (Hainan) reform and Development Research Institute of public policy, Vietnam and the EU signed from trade agreement and signed with the United States to TPP, on China's low-end export industries bring relatively large pressure. Textile, clothing and other industries, Vietnam will have a greater cost advantage than China. The proportion of Vietnam will gradually increase in the market share of the middle and low end of the market in Europe and America market..

China's manufacturing industry should focus on Upgrading

Kuang Xianming believes that continue to compete in the low-end manufacturing with Vietnam and other countries, both unrealistic and contrary to the direction of the upgrade. "Objectively, the impact does not have a huge impact on China's economy itself. China's pressure, including the pressure caused by the manufacturing industry, not Vietnam brought, more than the problem of its own economic restructuring and upgrading needs to be resolved."

He said that for China, to deal with this impact, focus on accelerating the transformation and upgrading of the industry. The key is to accelerate the process of opening up the service industry, and promote the development of service industry, especially to accelerate the development of producer services, forming a new competitive advantage. On the other hand, the key is to seize the "along the way" the opportunity to form a greater range of markets, efforts to broaden the space for economic development in China.

"At present, China's manufacturing industry has points not not, Vietnam has advantage on factor costs, Europe and the United States have technical advantages, we're in the middle of, so I hope to play the comprehensive advantages, like swimming medley." Bai Ming said that at the moment we can first do a good job in the end market, both a certain technical content, but also a certain price competitiveness.

For the impact of the Vietnam manufacturing industry, Bai Ming believes that it is not necessary to worry too much. "The labor efficiency of Vietnam is far less than China"." Bai Ming said that if the efficiency is not to improve and the cost of the advantages of the light, it is difficult to sustain.

Calle Rona, chairman of Foshan Xu Hong Furniture Co., Ltd., said, in recent years, many of the furniture industry peers transfer positions, either go to Bangladesh, or go to Africa, because close to Europe. To Vietnam, but from many, most of the appraisal is Vietnamese workers is lazy and rural Vietnam mostly women work and men don't work, quite in only half of the rural labor force participation. In addition, there are north-south contradictions in Vietnam, the situation is unstable."