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Bottlenecks In Textile And Garment Industry Pfer

2008/9/4 10:35:00 28

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Textile And Garment Industry Shifts To The West

It is the difficulties in the pfer process that compel the coastal areas to keep their headquarters, brands, R & D departments and other departments in the Midwest.

Since last year, some enterprises in the Yangtze River Delta and the Pearl River Delta region have started a wave of factory relocation, moving factories to foreign countries or the Midwest.

But the survey found that many enterprises that had already pferred were not having a good time.

"Going out" is not successful.

"No matter whether we move to the mainland or Southeast Asian countries, there will be many new risks to face, but we must first consider the survival of enterprises."

Xu Xiaoping, general manager of Hang Lung garment making company, who has been in Dongguan for over 20 years, said frankly.

The sharp calculation of capital for surplus value shows that even manpower cost savings are not necessarily cost-effective.

Xu Xiaoping assumed that when he moved to Sri Lanka to build a factory, he could pay 10 yuan per day for local workers to create 10 yuan output value, which was 1 to 1. However, if he paid 500 yuan in China, he could create 1500 yuan worth for workers.

"There is still a certain gap between the quality of the staff in the tropics and the quality of the workers in China. Besides, the industry matching that China has developed over the past 20 years is not what low-cost countries can do immediately."

Xu Xiaoping said.

Although the BRICS Economic Research Institute of Japan has thrown out the "VISTA theory" of new emerging markets (Vietnam, Indonesia and other countries), it is predicted that it will become a new locomotive to drive the world economy to take off. However, Vietnam, Indonesia and other countries are faced with many problems such as inadequate infrastructure, frequent short balance of payments and so on.

According to the analysis of enterprises with relocation intention, the construction of factories in Eastern European countries, though low in cost, is far away from Malaysia and Indonesia. Vietnam has low labor costs, but it is not compatible with Thailand.

A survey of the survival situation of Chinese clothing and textile enterprises in Kampuchea shows that Kampuchea is obviously one of the most densely populated areas in China's textile and garment enterprises.

In the past ten years, China has invested 107 in Cambodia's textile and garment enterprises, but the situation of Chinese enterprises in Cambodia is not good.

As one of the least developed countries, investment in Kampuchea can indeed enjoy many benefits.

The United States, the European Union and other 28 countries have been granted the "GSP" treatment in Kampuchea.

In addition to the United States set a relatively loose quotas for some textiles imported from Cambodia, other countries offer preferential treatment for quotas and tariff reductions for importing textiles and clothing products from Cambodia.

However, China's clothing and textile enterprises invested in Cambodia can operate normally, with less than 20% of the profitable enterprises, and the rest have suffered serious losses or even failed.

Government agencies are inefficient and infrastructures are lagging behind. Frequent water interruption and power outages are not enough for enterprises to meet their production needs.

Many external factors lead to cost control difficult to achieve.

Coupled with the enterprise's own strength and pnational management capabilities, there are only a handful to achieve profitability.

The pfer of industries to foreign countries not only takes time but also needs more funds.

It will take more than 10 years to develop a complete logistics network and supporting industries, which will also mean a more difficult reconstruction.

Angel, the marketing manager of WolverineWorldWide, a footwear and garment manufacturer beset by the Vietnam financial crisis, said that the problem of imperfect industrial chains in Southeast Asian countries is not too large. These soft environments are all human beings can rebuild, and no relocation is required to adapt to the laws of the Guangdong market.

"But Vietnam is very prone to strike. Last year, Vietnam's factory strike had a very bad impact on the company."

Angel said that with the increase of foreign investment in Southeast Asian countries, the output is increasing and the risk is also big. "It is difficult to guarantee when the EU will give you any policy. Mainland China is only copying the situation of Taiwan in the early years, and other countries will be unable to guarantee that such a cost pressure shift will happen later."

Recently, a Taiwanese shoe factory that moved to Vietnam in Guangdong was hit by workers' strike, equipment was smashed, and the workshop was burned.

Vietnam's labor daily reported that this year, the southern Vietnamese workers strike incidents continue, dozens of cases have occurred, and is on the rise.

According to the Agence France-Presse reported on April 2nd, at least 15 thousand people took part in the strike and asked the factory to raise salaries to cope with the soaring prices in Vietnam.

Things will not be as easy as they think, for those domestic enterprises eager to sprint overseas markets with strong support from the government.

It is also necessary to realize the pfer of surplus capacity and avoid trade barriers.

But in the final analysis, enterprises need to treat them calmly according to their own conditions.

Li Haolin, a researcher in international trade at the school of economics, Sichuan University, said that the risk of going out blindly is not high enough because of its immature conditions and inadequate understanding of overseas markets.

Compared with China, labor and land costs in these countries and regions are relatively low. However, because of the lack of skilled industrial workers, perfect industrial chains, and barriers to language, religion and living habits, many enterprises do not get the desired benefits.

However, enterprises that are looking to the Midwest have encountered many difficulties.

Shifting the Midwest also has many bottlenecks.

The bottleneck of the textile and garment industry shifting to the Midwest is the first to bear the brunt of the incomplete industrial chain.