(original) plywood foreign trade trip to Vietnam – initial investigation 3
Yesterday, I recorded my investigation of plywood in Vietnam in the way of memory. I am ashamed to say that because I stayed abroad for such a long time for the first time, the food there was very fresh at the beginning. Later, my stomach was a little uncomfortable, that is, it was not acclimatized to water and soil.
In early 2018, many Chinese business owners predicted that the impact of the Sino-US trade war on China and the world would become more and more obvious, so they also accelerated production, and more Chinese plywood factories joined the investment team.
At this time, there are some things happening in China, such as shortage of workers, rising wages and salaries, and picky customers. With the constant changes of trade policies, the Vietnamese market is also unstable. The policy of Sino-US peace and war scares every factory in Vietnam. Large investment, some factories have not yet begun to put into production formally, if the policy changes, they will lose their money. However, through dialogue with them, they still hope to invest in China even if they have no money at all, because China has unparalleled foreign soft and hard environments suitable for investment and production, as well as related supporting facilities. More importantly, their relatives are at home. Who wants to go abroad just to earn money?
In mid-2018, suddenly the relationship between the United States and China eased a little, and orders from Vietnam suddenly decreased. Chinese plywood factories could make part of the cork plywood, so Vietnamese factories were not in a hurry because they had their old customers. Despite their increased production costs as they changed the local production structure in Vietnam, regular customers still placed orders for them. Of course, some of the less receptive customers, such as Korean and Japanese plywood customers, were scared away. For China’s plywood factories invested in Vietnam, this signal is not good and they are under great pressure.
In the second half of 2018, US-China relations suddenly became tense. Especially after October, even cork plywood like pine was increased tariffs, and Vietnam’s business began to improve gradually. The whole thing is like a roller coaster, which makes more people worry that any action by these two world economic giants will cause a great economic earthquake in the whole world.