Nike OEM refers to the OEM authorized by Nike to help Nike produce and process footwear products. Because of the low labor price in Asia, many of Nike's foundries are located in China, Viet Nam, Thailand and Indonesia. These foundries need to have certain production capacity and qualifications, and must abide by Nike's regulations and standards. Nike expands its production scale and reduces costs by authorizing a foundry, which can make a profit by providing services for Nike.