Guangdong's labor shortage and higher costs are prompting manufacturers to move some production inland and to Vietnam, the South China Morning Post reported. It said Zhuhai-based Kingmaker Footwear Holdings is rethinking plans to expand capacity at its plant in nearby Zhongshan and instead looking at Vietnam to handle as much as 40% of output. The daily also said contract shoemaker Yue Yuen Industrial (Holdings) was planning to establish production facilities in southwest Jiangxi province where labor and utility costs were 30% less than in Guangdong and better roads now halved transport time to Shenzhen's Yantian Port to only six hours. A Hang Seng Bank report said labor shortages in Guangdong, Fujian and Zhejiang challenged the conventional wisdom of ï¿½a seemingly inexhaustible Chinese workforce", predicting low-end manufacturing would migrate inland.
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