Business
US toymakers target Vietnam for production relocation from China
US-based Hasbro, the world’s leading toymaker, planned to reduce its production capacity in China to 60% by 2020, compared to 69% in 2018 and 86% in 2012, with Vietnam among its alternative destinations.
The ongoing US – China trade friction is causing negative impacts on US toymakers, forcing some major brands to consider moving their production facilities in China to other markets, including Vietnam, Vietnam News Agency reported.
Some US toymakers said if their products are made in the US instead of China, the price would be five times higher, making it difficult for customers to buy toys at such high price.
Assuming the US applies a 25% tax rate on raw materials, these companies may go bankrupt or cut down the number of labor force.
According to experts, the trade friction between two world’s largest economies may lead to major toymakers relocating their facilities to other markets, a trend that has been going for the time being due to rising costs in doing business in China.
US-based Hasbro, the world’s leading toymaker, planned to reduce its production capacity in China to 60% by 2020, compared to 69% in 2018 and 86% in 2012. The company could resettle some of its production facilities to US, Mexico, Vietnam and India.
According to statistics from Euromonitor International, toy manufacturing sector in Vietnam, Indonesia and Malaysia recorded two-digit growth rate in the 2012 – 2017 period.
Illustrative photo.
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Assuming the US applies a 25% tax rate on raw materials, these companies may go bankrupt or cut down the number of labor force.
According to experts, the trade friction between two world’s largest economies may lead to major toymakers relocating their facilities to other markets, a trend that has been going for the time being due to rising costs in doing business in China.
US-based Hasbro, the world’s leading toymaker, planned to reduce its production capacity in China to 60% by 2020, compared to 69% in 2018 and 86% in 2012. The company could resettle some of its production facilities to US, Mexico, Vietnam and India.
According to statistics from Euromonitor International, toy manufacturing sector in Vietnam, Indonesia and Malaysia recorded two-digit growth rate in the 2012 – 2017 period.
