In fact, it was just because the domestic enterprises played a foundry role for international brands, including Nike OEM, and enterprises can only get a small profit, so companies did not have enough profit margins to digest any cost pressures that were brought by wage growth. Conversely, the foundry business needed to lower the remuneration of workforces, and the rights and interests of workforces would be sacrificed as a cost if the enterprise wanted to maintain survival. There was also another consideration, which was the environmental cost.
A virtual modality of pollutants transfer existed in the trade of Air Jordan DMP foundry. This virtual form of pollutants came from the three industrial wastes, which were known as waste water, waste gas and solid waste that were produced and emitted through the process of manufacturing foundry products. As for importing countries, these contaminants were enjoyed and then were moved to the exporting countries that gave production to these goods, and these pollutants also turned out to be a sort of invisible cost behind the foundry trade in China.
Some scholars stated that through sacrificing workers’ low salary and environmental costs to exchange for the prosperity of both foundry trade and GDP can be described as a sort of “immiserizing growth” rather than the national wealth and economic prosperity in its true sense. This type of “sweatshops” mode did not have sustainability. When Vietnam was playing the role as Nike shoes’ foundry base, Chinese enterprises have headed for the stage of proprietary brand. Although Vietnam has become the largest production base of Nike shoes, it has nothing to do with “Made in Vietnam”.
It was reported by the media that there were more than a hundred contract foundries of Nike global sports shoes, including many businesses in Taiwan, such as Basoche, Winterthur, Ting Lu and Kong Wing. In China, Vietnam, Indonesia and other places of Asia, there scattered these foundries. Five point five percent production of Nike was grasped by Jordan Pro Strong Winterthur Group, and began from the year of 2005, Air Jordan 9s the Company turned many Chinese orders to Vietnam. Meanwhile, the Group massively expanded the production line of its four processing plants in Vietnam. Furthermore, in order to Nike KD 7 set up a new factory in Vietnam, more than one thousand dollars were invested by the company.
Just in 2005, the world’s largest OEM Basoche Group of Nike was also increasing rapidly on its production capacity in Vietnam. In the ensuing years, Winterthur and Basoche have increased their investment in Vietnam. It would be visible that we can explain the so called Nike shoes were made in Vietnam in Jordan Winterized 6 Rings this way, which was just Nike foundry enterprises’ purpose to shift its capacity to Vietnam for lower production costs. There was no inevitable connection between this thing and Vietnam itself on how to improve its production ability. Enterprises in China have transferred to domestic brands from imitation, and there was narrower gap between themselves and other international brands, such as Nike.