10:21 | 25/02/2016 Economy
Several Italian manufacturers have announced plans to relocate their operations from China to Vietnam, as declining economic growth and rising wages there are making it difficult for them to continue doing business.
The revelation was made by Bruna Santarelli, a member of the Italian Trade Commission on February 17 at a press conference at the ProPak International Processing and Packaging Exhibition in Ho Chi Minh City.
"In China, there are many Italian companies invested, but they are facing wage increases and labour strikes,” said Ms Santarelli.
She said they also are desirous of moving to other countries in ASEAN (Association of the Southeast Asian Nations) to take best advantage of trade and investment opportunities presented by the AEC’s formation.
Lastly, she said many of them are suppliers to Samsung and they are relocating to avoid fragmenting the supply chain and because the move makes better economic sense, adding to their overall profitability.
According to official reports, minimum wages in China have almost doubled over the past five years. Labour-management disputes over factory closure have also become commonplace in China./.