Rising costs in China make entrepreneurs look to Vietnam
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‘People are starting to wonder if doing business in China is worth it.’ African nations have been turning to Vietnam as the business environment in China becomes increasingly more difficult. African businesses started flooding to Guangzhou City after China joined the World Trade Organization in 2001.
Migration from Africa has risen as China “has stepped up its diplomatic links and investments with the continent,” the newspaper explained.
In 2009, local media put the African population in Guangzhou at 100,000, including those who had overstayed their visas, it said.
Guangzhou draws merchants who come to buy goods such as jewelry and electronics in bulk, which they ship back to their homelands.
A part of the city has even been given the name “Little Africa.”
But things have changed.
The city’s African population had dropped to 10,344 in February last year, citing the municipal bureau of public security as saying, though Liang Yucheng, a professor of social sciences and humanities at Sun Yat-sen University, told the newspaper that there were still nearly 20,000 African traders in Guangzhou.
Felly Mwamba, a leader of the Congolese community in Guangzhou, said one of the main reasons for this was rising costs, listing visa fees air tickets and other living expenses.
“Most African trade with China is basic goods, like clothes, shoes, electrical appliances and low-end smartphones. Prices, logistics and living costs are all soaring in China,” a Kenyan trader identified as Don said.
“Every day among the African community in Guangzhou, more and more have people started talking about going home or exploring new markets like India, Vietnam and Cambodia,” he said.
The other reason for the falling African population in Guangzhou, as pointed out by Xinhua news agency in January, is that “police have tightened enforcement on illegal immigration.”
Long-time African residents told that they have seen their compatriots lapse into “illegal” status after struggling with visa renewal requirements.
“Every day among the African community in Guangzhou, more and more have people started talking about going home or exploring new markets like India, Vietnam and Cambodia,”
Nigerians must submit criminal record checks for all work and student visas, and no African countries are eligible for 72-hour or 144-hour transit visa exemptions, unlike visitors from many other nations.
“My friend had to go home to give fingerprints for a criminal record check. A return flight costs $2,000. By the time he got all his documents in order, his visa had expired,” said Akubakarr Sajor Barrie, director of an import-export company.
“For a small business owner, this is really hard. People are starting to wonder if doing business in China is worth it and they’re going to countries like Turkey and Vietnam instead,” he was quoted as saying.
Official data from the labor ministry showed the number of foreign workers in Vietnam grew by more than 12,600 in 2004 to 83,500 in 2015, and 93 percent of them are legal.
Those foreigners come from 110 different markets, and most of them are from China, South Korea, and Taiwan.
Vietnam was named among the top 10 destinations for expats in a ranking released in March to aim at guiding the world’s rising number of modern nomads.
The country was placed ninth on the InterNations’ 2018 Expat Insider survey, climbing three spots from last year.
More than four in five expats, or 81 percent, described the Vietnamese people as welcoming, and 73 percent said it was easy to settle down in the country, the survey found.
Of the expats questioned, 56 percent said they had found it easy to make friends with locals, and 16 percent said they planned to stay forever.
Questions & Answers
Q.What factors are prompting African businesses to reconsider operating in China?
What factors are prompting African businesses to reconsider operating in China?
Rising costs are a significant factor, including visa fees, air tickets, and general living expenses. Also, Chinese police have tightened enforcement on illegal immigration, making visa renewal requirements more challenging for many African residents.
Q.What specific difficulties do African traders face with visa renewals in China?
What specific difficulties do African traders face with visa renewals in China?
Nigerians must submit criminal record checks for all work and student visas, and no African countries are eligible for 72-hour or 144-hour transit visa exemptions. This often requires costly return flights for document processing, sometimes leading to visa expiry.
Q.Which alternative countries are African traders considering instead of China?
Which alternative countries are African traders considering instead of China?
Traders are exploring new markets such as India, Vietnam, and Cambodia, as well as countries like Turkey. Vietnam, in particular, is noted for its increasing number of foreign workers and its welcoming environment for expats.
Q.Has the African population in Guangzhou changed recently, according to the article?
Has the African population in Guangzhou changed recently, according to the article?
Yes, the African population in Guangzhou reportedly dropped to 10,344 in February last year, down from an estimated 100,000 in 2009. However, one professor suggested there were still nearly 20,000 African traders in the city.
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