Sharp plans Vietnam factory to sidestep trade war

[Kai Liu]

The problem is China is playing the "wait game" in the trade deal negotiations with the US because China want to show itself strong in front of US and the rest of the world, so it is ready to take some economic hit and loss of revenues due to declining exports to US amid the tariffs imposed on Chinese sourced imports into US.

But the companies are altogether a different kind of entity, they cannot "afford" to lose their revenues in the US market or become stubborn to keep taking losses to satisfy their "ego" or "stubbornness" as it is with the Chinese government. Companies are just reinventing themselves to avoid US tariffs for their exports into US sourced from Asia, these companies are answerable to their "shareholders" who won't let them keep taking losses by keeping their production lines within China.

It is just a matter of months that most companies whose revenue is considerably dependent on their exports to US will move their manufacturing lines to other countries of Asia like what Sharp company is doing now. In capitalist system companies are answerable to their shareholders only, they are not supposed to pamper the "ideologies", "egos" or "stubbornness" of the governments of the countries (in this case china) where they functions for any prolonged periods of time.

Well, things are not that simple. They have to weigh the losses and gain carefully... Individual company has to, same as the US government... As I mentioned in other posts, trade deficit is nothing compared to the gain from Chinese market... China is unique with 1.5 billion well educated population and world's no.1 purchasing power, any other country would yield to the USA easily but not China... If US choose not to do business with China then EU will thrive, if EU choose not to than US will, if both choose not to, then our own companies thrive... Trade war is a big show directed by Trump to win some votes, but nothing tangible are perceived here, except some insignificant or even fake news to make some clowns jump up and down (like the vietnamese ones)...
BTW, Sharp is a failed company...

 

[Viet]

It is you who failed to understand... Do you think we will still give our market (e.g. cars, etc.) to them if they use vn as a production base (despite you can hardly even take 1% of our manufacturing capability...)??? Even a moron can understand this...
Take Samsung as an example... They were literally driven out of Chinese market while our domestic brands take the pie and thrive...

I am talking about production base. Samsung is still alive with zero China market share. I am pretty sure lots of US companies with zero chinese consumers will continue to survive if they shift factories to Vietnam.

As for 1 percent, ok we have to start somewhere, aren’t we? The US buys products worth $540 billion from China every year. I don’t see why we can’t scale up manufacturing to do the job? Germany has less people than Vietnam but Germany exports are over $1.45 trillion per year. We just need more factories. Lots more factories. Ten thousands factories.

 

[Kai Liu]

I am talking about production base. Samsung is still alive with zero China market share. I am pretty sure lots of US companies with zero chinese consumers will continue to survive if they shift factories to Vietnam.

As for 1 percent, ok we have to start somewhere, aren’t we? The US buys products worth $540 billion from China every year. I don’t see why we can’t scale up manufacturing to do the job? Germany has less people than Vietnam but Germany exports are over $1.45 trillion per year. We just need more factories. Lots more factories. Ten thousands factories.

For a company like Samsung, it is not about survive or not, but about being the leader in the market, if Samsung still have even 30% of China's market share, it will still be the dominating phone maker no one could challenge like a decade ago, but unfortunately it didn't and now everyone can challenge it in phone making (Xiaomi, Huawei, Vivo/Oppo, to name a few). And I bet if GM or even VW pull out of China, they will become a 2nd rate car manufacturer in the world, and China's Huawei equivalent in car industry will appear... Now do you still think EU or US will make such sacrifice and take vietnam seriously??? Business men are clever than you...

 

[Viet]

For a company like Samsung, it is not about survive or not, but about being the leader in the market, if Samsung still have even 30% of China's market share, it will still be the dominating phone maker no one could challenge like a decade ago, but unfortunately it didn't and now everyone can challenge it in phone making (Xiaomi, Huawei, Vivo/Oppo, to name a few). And I bet if GM or even VW pull out of China, they will become a 2nd rate car manufacturer in the world, and China's Huawei equivalent in car industry will appear... Now do you still think EU or US will make such sacrifice and take vietnam seriously??? Business men are clever than you...

Samsung still does great despite zero market share in China. Apple is losing ground in China. Apple is now where Samsung some years ago. Apple will do great if the market share sinks to zero in China.

You can’t force foreign companies to stay put if you stop buying foreign products.

Germany won’t collapse If you stop buying BMWs. Vietnam, Indonesia, Pakistan etc are markets for BMWs. Why would BMW become a second rate carmaker if you stop buying?

 

[Kai Liu]

Samsung still does great despite zero market share in China. Apple is losing ground in China. Apple is now where Samsung some years ago. Apple will do great if the market share sinks to zero in China.

You can’t force foreign companies to stay put if you stop buying foreign products.

Don't you see Samsung' market share is shrinking??? And don't you see who is biting its pie???

https://sea.pcmag.com/apple-iphone-8-plus/28253/smartphone-global-market-share-2009-to-2018

Apple is free to pull out of China, and we are ready to take over 30% of its total sales... But businessmen are always clever than you, and they decide not to:
https://www.latimes.com/business/la-fi-tn-apple-pro-china-20190628-story.html

And Elon Musk is doing the right thing for himself too:
https://techcrunch.com/2019/07/24/t...3-production-at-china-factory-by-end-of-year/

 

[Viet]

Don't you see Samsung' market share is shrinking??? And don't you see who is biting its pie???

https://sea.pcmag.com/apple-iphone-8-plus/28253/smartphone-global-market-share-2009-to-2018

Apple is free to pull out of China, and we are ready to take over 30% of its total sales... But businessmen are always clever than you, and they decide not to:
https://www.latimes.com/business/la-fi-tn-apple-pro-china-20190628-story.html

Old news!
Samsung is gaining market share now she is Numero Uno. Samsung does great after moving out of China and concentrates on rising smaller markets.

Apple is losing because she is too focused on China.

Once Apple quits China and focus on markets like Samsung does, Apple will do great again.

Like Samsung, Apple has no future in China.

 

[Viet]

What "old news"? Old new in 2018??? Check carefully, that figure shows:
Global market share held by leading smartphone vendors from 4th quarter 2009 to 4th quarter 2018

Don't deny... You tiny shitty vn is nothing in the eyes of those big business tycoons..

I am talking of market share 2019!

tiny shitty vn?

I report you of abuse language!

@Dubious

 

[Kai Liu]

I am talking of market share 2019!

tiny shitty vn?

I report you of abuse language!

@Dubious

Are you addicted to report?? such a coward...
Anyway, I start to doubt if you really have a college degree... You need years of data to give you a trend and a conclusion, which I provided, while you are talking about "market share 2019"...lol...

 

[Viet]

Are you addicted to report?? such a coward...
Anyway, I start to doubt if you really have a college degree... You need years of data to give you a trend and a conclusion, which I provided, while you are talking about "market share 2019"...lol...

You have a problem. You can’t accept nor tolerate other opinions.

You post market shares over a period.
I post market share this year 2019.
Why do you feel the need to insult our country and people?
Where is your education?
Calling you “peasant” is an understatement!

It’s very easy to google a bit zu find out Samsung has won market share.

https://9to5mac.com/2019/08/01/smartphone-market-share/amp/

 

[Kai Liu]

You have a problem. You can’t accept nor tolerate other opinions.

You post market shares over a period.
I post market share this year 2019.
Why do you feel the need to insult our country and people?
Where is your education?

It’s very easy to google a bit zu find out Samsung has won market share.

https://9to5mac.com/2019/08/01/smartphone-market-share/amp/

Seriously, you have no clue...
If you check the figure I have shown, you will see there are fluctuations, but overall, the trend still hold, in 2019, nothing has changed about the overall trend... You said you have a Master's degree, but as I see, you have no idea about doing research, if you are going to submit a paper showing a single point of data, and draw a conclusion, you get rejected right away... I know this even as a peasant... lol...

 

[Viet]

Seriously, you have no clue...
If you check the figure I have shown, you will see there are fluctuations, but overall, the trend still hold, in 2019, nothing has changed about the overall trend... You said you have a Master's degree, but as I see, you have no idea about doing research, if you are going to submit a paper showing a single point of data, and draw a conclusion, you get rejected right away... I know this even as a peasant... lol...

I hate talking to dumb peasants that insults my country and people.

In doing so you insult china as country populated by dumb peasants.

 

[8888888888888]

Just a matter of time before EU stop buying CN products. EU justbsigned FTA wt VN, products manufacturing in VN exporting to EU could be cheaper than in CN tks to Zero tax

Vietnam’s can never produce the numbers China can, while it’s all going to be inferior. So not going to happen in fact many USA companies are just going to pass the cost to their customers and can’t be bothered anymore.

 

[Viva_Viet]

Vietnam’s can never produce the numbers China can, while it’s all going to be inferior. So not going to happen in fact many USA companies are just going to pass the cost to their customers and can’t be bothered anymore.

Okay, thats their choice, we dont care, our economy is growing well now and our salary still increase 10% per years while CN economy ia shrinking, customers will buy less CN products due to higher cost

 

[Viet]

Vietnam’s can never produce the numbers China can, while it’s all going to be inferior. So not going to happen in fact many USA companies are just going to pass the cost to their customers and can’t be bothered anymore.

We can scale up our manufacturing very quickly if we want. What we need is technology, money and manpower. Trump says this week if China doesn’t want trades, he is fine. Exactly what I predicted time ago.
We produce one billion shoe pairs a year, not much difficult to produce ten billion shoe pairs. Whatever TVs, computers, displays, cars, trucks, spare parts. Or smartphones. Let’s say the West stops buying chinese smartphones. No problem at all. Vingroup one smartphone factory alone can produce 125 million pieces a year. We can replace Huawei very quick if the company is banned.

FILE PHOTO: A manufacturer works at an assembly line of Vingroup's Vsmart phone in Hai Phong. Photo: Reuters
Read more at https://www.todayonline.com/world/v...w-phone-plant-can-make-125-million-units-year

 

[Viva_Viet]

We can scale up our manufacturing very quickly if we want. What we need is technology, money and manpower. Trump says this week if China doesn’t want trades, he is fine. Exactly what I predicted time ago.
We produce one billion shoe pairs a year, not much difficult to produce ten billion shoe pairs. Whatever TVs, computers, displays, cars, trucks, spare parts. Or smartphones. Let’s say the West stops buying chinese smartphones. No problem at all. Vingroup one smartphone factory alone can produce 125 million pieces a year. We can replace Huawei very quick if the company is banned.

FILE PHOTO: A manufacturer works at an assembly line of Vingroup's Vsmart phone in Hai Phong. Photo: Reuters
Read more at https://www.todayonline.com/world/v...w-phone-plant-can-make-125-million-units-year

Tks to VN-EU FTA, I think at least Samsung phones will be cheaper than Cnese ones in EU due to Zero tax.

Ppl buy CN phones due to cheap price, but Ssung, Vinphone r cheaper tks to Zero tax, theb no more reason to buy more expensive CN ones