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What?prices rises!

Southeast Asian factories are not affected by environmental protection. Why have they started to collapse in large areas?

 

1.the cost of all aspects of the construction of Southeast Asia is soaring.

According to statistics, there were 34 new factories in Kampuchea in 2016, but more than 70 factories closed down. In 2017, 15 new houses were opened and 54 were closed.

The owner of the bankrupt factory told the truth that he did not make money, even if he invested in factories in Kampuchea, and related taxes and related tax concessions.

But the wages of workers in Southeast Asia have been rising, the minimum wage in Kampuchea has risen to $170 this year. The quality of local workers is generally low, production efficiency is not high, and the investment in management and training is needed.

2. The supply chain in Southeast Asia is incomplete.

Labor-intensive industries are located at the bottom of the industrial chain and rely on the meager profits generated by orders.

After deducting the cost of human resources, the enterprises should bear the cost of logistics and raw materials, which are not affected by the production level of Southeast Asia. Many raw materials have to be transported from China, which will increase the cost of investment.

The manufacturing sector is closely linked. Factories are built in Southeast Asia. They lack materials and spare parts, but also go back to domestic procurement.

3.workers' rights protection activities are frequent, affecting the normal production activities of factories.

In Southeast Asian countries, workers are highly aware of their rights and frequent strikes.

Last year, Kampuchea workers continued to demand a rise in wages, and there was a series of massive demonstrations that made the big brands dared not to go down easily, and many local factories were forced to stop production and even bankrupt because of the decline or even shortage of orders.