The international division of labor in manufacturing is moving towards divergence points
Southeast Asian countries, Brazil and other emerging economies raised the minimum wage in January this year. With the continuous influx of foreign manufacturing industry, due to economic growth and manpower shortage, wages in emerging economies have risen 2.2 times in the glass fiber industry with a global market value of $7.2 billion in 10 years. This trend is expected to accelerate. The international division of labor in manufacturing, which only focuses on wage levels, has stood at a crossroads
the picture shows the employees in Jakarta who want to improve the working environment
the most obvious increase in wages is ASEAN (ASEAN). Indonesia decided to raise the minimum wage in Jakarta, the capital, by 44% from January to IDR 2.2 million per month. Vietnam has also raised the national minimum wage by 16-18% since January. The minimum wage of 300 baht per day applicable to Thailand in Bangkok has been popularized throughout the country. Wages, including subsidies, generally exceed the maximum wage
the background of the rise in the minimum wage is that factories such as foreign-funded enterprises have set off a climax of entering Southeast Asia. Japan Fast Retailing, which operates UNIQLO, plans to expand OEM production in Myanmar and Vietnam, while Fuji Xerox's Vietnam plant will be put into operation in November. Due to the soaring labor costs in Chinese Mainland, enterprises are speeding up the transfer of factories to Southeast Asia, where wages are relatively low
the rise in the minimum wage is not limited to Southeast Asia. The Brazilian government raised the monthly minimum wage to 678 Brazilian Riyals in January, an increase of 9% over last year. In Sao Paulo, the capital of South Korea, a strike occurred in the new factory of Hyundai Motor Co., Ltd., which is owned by the car with the minimum order thickness. Finally, the factory was forced to raise wages by about 24%. In South Africa, a large-scale strike involving tens of thousands of mining workers took place, and the operators agreed to a substantial increase in wages
since the 1980s, the global manufacturing industry has been transferring to emerging economies with low wages. The model is to produce products in emerging economies with low labor costs and then export them. In the past, the manufacturing industry in Japan, the United States and Europe was the focus of the transfer, and in the past 10 years, enterprises in South Korea and other places are also transferring factories to emerging economies, so the competition is becoming increasingly fierce
due to the continuous entry of foreign-funded factories, wages in emerging economies have risen rapidly. The average wage of factory workers (converted into US dollars) in 14 major cities in emerging economies in 2012 has reached 2.2 times that in 2003. The wage level of Japanese enterprises fell by about 9% in yen over the same period, and even if translated into dollars, it only increased by about 40%. And the United States only rose by about 30%. The wage gap between developed countries and emerging economies is narrowing
in Indonesia, the Indonesian Operators Association said that 10 companies, including 2 Japanese companies, were discussing withdrawing from Indonesia. Thailand's large refined sugar manufacturers canceled plans to build factories in Myanmar and Cambodia. The director of the Japan Trade Promotion Agency (jetr electronic universal testing machine precision found after o) Bangkok office, assistant Kawashima, also investigated the researcher and believed that: in the era of emerging economies as a supplier of cheap labor, PolyOne has specially hired sales and technical personnel with special engineering material background in India, which has ended
foreign funded enterprises regard the rise in wages in emerging economies as a good opportunity to expand domestic demand and will actively adjust the production system. Toyota will invest about 16.9 billion yen to build a new factory in Thailand, while Honda plans to expand production in Indonesia. Enterprises are striving to shift to the business model of producing and consuming in emerging economies
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