Factory of factories: China’s manufacturers join wave of overseas expansions
With many of their clients moving or building sites abroad, China’s factory owners are following suit, seizing a ‘last chance’ for new revenues
China, known as the “world’s factory” after decades spent manufacturing and shipping much of the world’s consumer goods, is now going a step further: as a number of internal and external concerns create more incentives for the country’s companies to diversify their revenue streams, they have begun exporting their factories, too.
Vince Li, an entrepreneur based in Guangdong province whose firm produces chemicals used for surface coatings in the automotive and furniture sectors, is one of many business owners to join the latest proliferation wave.
Having opened his first overseas factory near Ho Chi Minh City in southern Vietnam this year, he admitted he was making the move after many of his peers.
“If we do not expand overseas now, we may miss our last chance,” he said. “Many of our domestic clients have set up production overseas, and if I don’t follow suit, they’ll choose other suppliers.”
The first phase is already in production, and the factory, Thuan Thai Hardware – which covers over 3,000 square metres (32,292 sq ft) – is expected to be fully completed next year, Li said. Even before the official opening of the factory, he added, he had already received orders from existing clients who had previously moved to Vietnam.