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Korean Job Discussion Forums
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Summer Wine
Joined: 20 Mar 2005
Location: Next to a River
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 Posted: Thu Jul 10, 2008 6:01 pm Post subject: North Korea: New Vietnam |
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July 10th, 2008 | by This is China! |
I recently talked with a Dutch friend with years of experience sourcing textiles in China. Months ago he had told me that production in Guangdong had diminished greatly and costs escalated. His company shifted sourcing to Qingdao � or rather, just outside Qingdao � in the northern province of Shandong. Qingdao is a charming seaside city with a strong South Korean and Japanese manufacturing base, and some Russian architecture. The greatest legacy of the colonial period to Qingdao was the brewery the Germans abandoned when they were told to get out of Qingdao at the end of World War I. It�s from that brewery that the Chinese learned how to make beer and to create a brand known world wide, the name of the city at the heart of the brand.
Still, the shakeout of low-end commodity industries in China has not ended, and Qingdao has hardly escaped. �Back five years ago,� my Dutch friend told me, �a primary vendor of ours in Qingdao had orders of 1 million pieces. He had landed Walmart as a customer. He went from being very small to very large and now is down to where he first started, 5,000 to 10,000 pieces. And whereas he had 1,000 employees at the peak of business, he now just has about 350. They don�t produce anything in the huge facility they have, they just assemble from smaller operations.�
But some of the more complicated pieces cannot even be handled in the area. �The owner of the factory has to outsource the manufacture of some knitted pieces, like collars. He gets those from North Korea.�
My jaw dropped. �North Korea as a production base?� I had visions of little girls stitching complicated knit pieces with bloodied fingers, soldiers with machine guns guarding the exits should the exhausted and hungry workers attempt to escape.
My friend nodded, drew a puff from his cigarette. �Yeah, so now he can get costs as low as they were ten years ago.�
�How do they get the orders into North Korea? How do they get the production out? Over land? Must be over-land.� I realized I was muttering to myself.
�Anyway, the guy isn�t hurting financially. He built a huge hotel across the street from the factory. Expects that as Qingdao becomes more wealthy, more foreigners will want to stay at the hotel � which was quite a nice place, really.�
And if the hotel investment doesn�t work out, I considered, and the textile industry booms again, he can always use the hotel as a dorm for migrant North Korean workers.
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I got this article from "This is China webblog". What do you think about North Korea becoming an industrial hub for China and what do you think the South Korean Chaebols will think of this. |
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Jandar
Joined: 11 Jun 2008
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| Posted: Thu Jul 10, 2008 7:47 pm Post subject: |
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| I guess I just don't understand what that has to do with Vietnam? |
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tfunk
Joined: 12 Aug 2006
Location: Dublin, Ireland
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| Posted: Fri Jul 11, 2008 6:05 am Post subject: |
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| Jandar wrote: |
| I guess I just don't understand what that has to do with Vietnam? |
North Vietnam, a communist country, is slowly becoming capitalist? Maybe North Korea will do likewise. That'd be nice. |
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ReeseDog
Joined: 05 Apr 2008
Location: Classified
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| Posted: Fri Jul 11, 2008 9:48 pm Post subject: |
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| New ESL market. Lotsa nonspeakers there. |
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rusty1983
Joined: 30 Jan 2007
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| Posted: Sat Jul 12, 2008 2:32 am Post subject: |
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I think the days of North Korea as it is now are numbered. They are too poor and by all accounts in a mess, but sit inbetween China and South Korea, 2 of the most prosperous countries in Asia (in China's case the world).
And yes, I do think it could well be China who muscle them into change and manoeveur them into modernity, for their own ends.
From my time in Korea, I didnt think people were particularly bothered about reuniting, so that may not happen, but considering North Korea's geographical position and China's unstoppable growth I could see North Korea modernising and becoming a capitalist unofficial part of China |
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tfunk
Joined: 12 Aug 2006
Location: Dublin, Ireland
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| Posted: Sat Jul 12, 2008 2:57 am Post subject: |
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| rusty1983 wrote: |
I think the days of North Korea as it is now are numbered. They are too poor and by all accounts in a mess, but sit inbetween China and South Korea, 2 of the most prosperous countries in Asia (in China's case the world).
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Wouldn't it suit both Kim Jong Il and China's interests to keep the people in a state of subservience? A cheap, no questions asked labor base.
If every man, woman and child in North Korea were starving, it would only affect the Kimmer insofar as it threatened his lifestyle. Before the 1850's most of the world was poor by todays standards so I think they can survive, doubly so if they are being propped up financially by China...they could survive indefinitely.
A factory worker doesn't need to enjoy the fruits of his labor, or even to understand what it is he/she is making in order to produce it. |
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Bryan
Joined: 29 Oct 2007
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| Posted: Sat Jul 12, 2008 5:38 am Post subject: |
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| rusty1983 wrote: |
| I think the days of North Korea as it is now are numbered. They are too poor and by all accounts in a mess, but sit inbetween China and South Korea, 2 of the most prosperous countries in Asia (in China's case the world). |
What? Do you know what you're saying? |
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rusty1983
Joined: 30 Jan 2007
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| Posted: Sat Jul 12, 2008 7:23 am Post subject: |
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| Bryan wrote: |
| rusty1983 wrote: |
| I think the days of North Korea as it is now are numbered. They are too poor and by all accounts in a mess, but sit inbetween China and South Korea, 2 of the most prosperous countries in Asia (in China's case the world). |
What? Do you know what you're saying? |
Eh? |
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