First, tax incentives From the strategic trends of Nike and Adi in recent years, we can see that they are making appropriate corporate adjustments. They spent their energy and money on the core technology. However, this last link was chosen to be completed in Southeast Asia. The reason for the gradual transfer from China to Vietnam is that compared with China, Vietnam's tax revenue is cheaper. Nike and Adi chose Vietnam in order to reduce product costs and increase sales. Another main reason is that Vietnamese labor is cheaper than China. In recent years, with the development of China and the rise of high-tech talents, the level of labor force has gradually improved, which is not like before. In other words, if Nike and Adi continue to build a foundry in China, the cost will be higher. So Nike and Adi are gradually adjusting their foundries from China to Viet Nam.
Second, the dominant position of Vietnam In the case of Nike Adi turning into a foundry, we can also see that Vietnam's outstanding geographical advantages also played a key role. If you look at the map of the world carefully, you will find that the location of Vietnam is very good. For Vietnam, both the distance from Europe and the United States and the distance from the eastern countries are very moderate. So Nike and Adi chose Vietnam as the location when they chose the foundry. In other words, after processing in Vietnam, it can be directly transported to markets around the world. With the help of Vietnam's location advantages, transportation costs can be reduced to the maximum extent, thus increasing its own sales. And in Vietnam, like this processing industry, the industrial chain is very complete. Very suitable for building foundries. Therefore, Vietnam has certainly become the best choice for Nike and Adi to choose a foundry.
With cheap labor and superior geographical location, Vietnam has become the foundry of Nike and Adi. You can also see the corporate adjustment of Nike and Adi from the side.