Taiwan Nian Xing Quit Nicaragua, Garment Production Focus On Vietnam

According to the Taiwan Economic Daily News: the garment industry association annual Hing Group (1451) evaluated the competitiveness of the Central American garments less than that of Southeast Asia, and expanded its focus to Vietnam. It is estimated that the five garment factories in Nicaragua will close completely at the end of this year, leaving only a dyeing and finishing plant. The existing leisure apparel orders in the US and China are pferred to Kampuchea for production and shipment.

Although Vietnam is now facing financial turmoil that is heavily derogatory, Mr Nien said that due to the fact that the production of garments in Vietnam was mostly export oriented and the production areas located in remote north Vietnam, there was little pressure on inflation.

The first garment factory in Xingyue Vietnam has opened 40 thousand units per month. It is estimated that second plants will be put into operation in November.

In 2010, the ysing Hing plan was expanded to six garment factories in Vietnam, and the profits and efficiency of Central America were copied to Vietnam.

Nian Xing has three cowboy garment factories, two leisure garment factories and a leisure cloth dyeing and finishing factory in Nicaragua.

Nian Xing said that after the abolition of global textile quotas, the price of garments was straight, and the efficiency of casual garments was only 80% of that of jeans. But the unit price was lower than that of jeans. Although Nicaragua enjoyed tax related benefits, its labor cost was three times that of Vietnam, and its efficiency was less than that of Vietnam. Vietnam alone earned at least 1 billion yuan a year than Nicaragua.

Even among the five Central American countries, only Nigerian countries enjoy a tariff free allowance of $100 million from the United States to the United States for the use of cloth made garments, but the maximum cost of the Dutch plus Southeast Asian cloth is still more competitive than that of the US.

Recently, Nian Xing has closed a garment factory in Nicaragua. It is expected to close another second by the end of June. After the closure of five garment factories before the end of the year, only one hundred dyeing and finishing factories will be left behind.

As for the existing part of the leisure apparel order in Central America, which is pferred to Kampuchea for shipment, it will exit the leisure garment market by the end of the year.

The annual Hing Group produces about 80 million denim and casual pants each year, the largest in the world, and the third largest denim production in the world.

Originally, he intends to vertically integrate in the upper reaches of the Nicaragua factory and set up jeans factory and leisure embryo factory. However, with the gradual pfer of machinery and equipment from downstream garment factories to Vietnam, the intention of fading out of Central America is obvious.

Yat Hing said that the existing dyeing and finishing plants will only be 100% order. The unit price is not good enough because of the 90% orders made by the factory in the past.