Recently, many customers are very concerned about the developments of our new factory in Vietnam and have written several times to inquire about the progress.
At present, due to the COVID-19 epidemic, the construction period of the Vietnamese factory is slightly behind, but generally speaking, the project is still in progress. In terms of real estate construction, the feedback we have received so far tells us that the construction period will not be delayed, as we declared. The Vietnamese factory will open as scheduled in April next year.
However, in view of the previous strict tracking of Chinese source goods and semi-finished materials by the US government and the addition of corresponding import protective tariffs on goods exported from non-Chinese mainland producing areas, at present, our team of corporate strategic consultants has not given clear instructions on what standards will be used for the resource allocation of electric bed factories in Vietnam.
In fact, this is reasonable. After the semi-finished products exported from China and sent to Vietnam, through twice custom clearances, this series of arrangements will incur a cost of 8-9%. If the United States levies protective taxes on our Vietnamese exports, the price advantage of Vietnam is no longer attractive compared to Chinese mainland factories. At present, the high-performance fully automatic machines have high requirements for power supply, but nowadays, the power supply in Vietnam is getting tightening day by day, and in order to ensure the efficient operation of the equipments, we must build our own backup power generation system, which are huge expenses. unless there is a sharp increase in customer order demand, otherwise, these longer-term & large expenditures are not on our current budget list.
Post time: Nov-30-2020