2010 China's Textile And Garment Industry: Cooperation Strategy With ASEAN

Fan Chunhong, vice chairman of the Vietnam Textile Association, said that many textile and garment manufacturers in Vietnam signed 3 quarterly contracts with foreign importers, and some even signed 4 quarter contracts, and the contract price increased by 10-15%

Recently, the appreciation of RMB is expected to be strong.

Mr. Xu of Wenzhou calculated that the price of a Vietnamese textile mill before the financial crisis was about 1 billion Vietnamese shield, about 600 thousand dollars.

After the outbreak of the financial crisis, the factory price fell 40%.

In the context of the appreciation of the renminbi, this will help Chinese enterprises to buy factories in Vietnam.

The fall of Vietnam's assets has actually provided many international funds with the opportunity to re collect the bottom. Moreover, Vietnam's situation is slightly better than that of Thailand. Vietnam's currency can still be controlled, not completely convertible currency, and there is little chance of encountering the impact of hedge funds.

Moreover, Vietnam is strategically unmatched in the China ASEAN Free Trade Area, the Greater Mekong sub region and the three economic zones in the Beibu Gulf economic belt.

Vietnam, as the most dynamic emerging economy in East Asia, will not diminish its attraction to foreign investment.

Therefore, the process of Vietnam's recovery may accelerate.

ASEAN's rotating presidency

2010 is a very important year for Vietnam. Vietnam, as the rotating presidency of ASEAN, will be a coordinating country between ASEAN and China.

Vietnam's ambassador to China, Mr. Ruan Wen Shi, said Vietnam will further promote the development of China ASEAN Free Trade Area.

Speaking of the future economic and trade development between China and Vietnam, Ranvens said: there are two economic corridors and an economic circle between Vietnam and China. Vietnam should do well in the "two corridors and one circle" plan, strengthen the bilateral economic and trade cooperation, and strive to complete the consensus reached by the leaders of the two countries, and the total trade volume between the two countries will reach 25 billion US dollars by 2010.

At the opening ceremony of the China ASEAN free trade area forum held in Nanning, Guangxi, Ruan Jinxiu, head of the Vietnamese government delegation and vice minister of industry and trade, said that Vietnam was pleased to welcome the China ASEAN Free Trade Area Agreement (ACFTA) in the three fields of commodities, services and investment.

Ruan Jinxiu emphasized that in the post of ASEAN presidency, Vietnam will work to promote relations between ASEAN and important partners, including China.

Xu Ningning, the standing secretary of the China ASEAN Business Council, said that since ASEAN has signed a free trade agreement with Japan, South Korea and India, China ASEAN Free Trade Area has been launched, and the products invested by ASEAN enterprises in ASEAN can enjoy preferential tariff treatment of the FTA between ASEAN and these countries, and thus sell to a broader international market.

If we consider from a deeper level, the APEC leaders' meeting will be held in Japan next year. The establishment of the first free trade zone between China and ASEAN will have a great role in promoting the full integration of Asia and even attracting the United States to return to Southeast Asia.

Globally, despite the recovery of the current world economy, there are still many uncertainties. Through the establishment of a "10+1" free trade zone, China can at least guarantee its stability and predictability in terms of regional economic and trade cooperation.

Chinese clothing "

The labor cost of garment workers in Vietnam is only about 40% of that of Ningbo. If Ningbo enterprises open the garment factories here, both domestic and export costs will be greatly reduced. At the 2009 Expo, new ASEAN member countries such as Vietnam and Kampuchea will make frequent invitations to Ningbo enterprises on the basis of "Ningbo garment" ASEAN making "more profitable".

"China's domestic market can not be underestimated, but now China's labor costs are rising. In contrast, when we open factories here, Ningbo's brand clothing will be sold back to the mainland of China after its production, and the savings in manual production cost will be enough to meet the pport costs of digestion."

Li Guo Yan, chairman of Vietnam textile and Apparel Association and chairman of Vietnam National Textile Group.

Through more than ten years of steady development, Ningbo textile industry has made breakthroughs in environmental protection, employee welfare, auditing standards for international brands and so on, and the cost of industrial chain is gradually improving.

Take the salary of garment workers as an example. According to the reporter, the monthly income of garment workers in Ningbo (working at 8 hours per day) has been raised to about 300 dollars, while Vietnamese garment workers earn only 150 dollars a month.

In addition, electricity tariffs in many countries were as low as 6 cents, which further reduced the cost.

This time, the "ASEAN delegation" and his party focused on the YOUNGOR group, and the two sides revealed strong cooperation intentions.

Pan Yaoquan, the leader of the ASEAN delegation and the chairman of the Singapore textile and clothing association, said: "in the ASEAN Free Trade Area, Ningbo's clothing enterprises can strengthen trade relations with ASEAN countries on the one hand, and the garments produced in Ningbo factories in ASEAN countries can be sold directly locally. On the other hand, enterprises can also take ASEAN as a pit point to avoid trade barriers between the European and American countries."

Financial crisis brings business opportunities

Just as the Nile River floods every time, it brings plenty of fertile soil. Vietnam, which is facing financial crisis, seems to be in flood season.

Xie Guozhong, who has done much research on the Asian economy, said that any developing country must go through such a stage in the rapid economic growth.

He believes that the bottom of Vietnam will once again usher in the next climax.

Professor Zhu Zhenming of the Yunnan Academy of Social Sciences, who has 30 years of research experience on the southeast Peninsula, has seen more opportunities to speak of Vietnam.

He said Vietnam's political situation was rare after the war, and the whole country focused on economic development.

Vietnam is an agricultural country, so the infrastructure supporting industry is rather weak, which is similar to that in China at the beginning of reform and opening up.

While in

As Vietnam joins WTO, more and more countries and regions in the world focus their attention on Vietnam. Nike, and some big enterprises in Korea, set up factories in Vietnam.

Hong Kong and Taiwan enterprises regard Vietnam as an ideal place for industrial pfer, and the traditional industries in the PRD should also be pferred to Vietnam.

In Dongguan, Huajian group, which operated footwear processing, started the process of pferring the PRD factories to Vietnam many years ago, and successfully opened a new production workshop in Vietnam.

Policy tilt

Mr. Xu from Wenzhou is the head of a garment factory in Penji County, Pingyang, Vietnam (50 kilometers away from Hu Zhiming).

Mr. Xu's factory has a total area of 9500m2, a factory area of 5000m2, and abundant electricity. It employs more than 80 Vietnamese workers, and equipment, drawings, orders and fabrics are all from China. After processing in Hanoi, they are exported to Europe and the United States.

According to statistics, the output value of light industry and raw materials produced by Wenzhou businessmen in Vietnam will reach US $50 million a year.

Wenzhou enterprises usually use local cheap labor to pport raw materials from China to Vietnam for deep processing, and sell most of their products to other countries.

Vietnam now has to impose a 45% tariff on fabric imports, but with the establishment of the ASEAN Free Trade Area and the start of the zero tariff plan, the investment will gain more profit margins.

Vietnam's wages and land costs are low, and of course, it is more important to use ASEAN to get through the export channels.

When China's textile exports were repeatedly subject to quotas, the United States and the European Union agreed to cancel Vietnam's clothing and textile quotas in January 1, 2005.

Vietnam's textile and garment industry is the main force for foreign exchange earning, and more than 80% of the total textile and garment products are exported for export, said Ruan, director of the office of Commerce and trade in Lang Son, Vietnam.

Vietnam's strategy put forward that the government plans to build 11 textile and garment industrial parks in 11 provinces and cities in the coastal defense sector in 10 years, and will make preferential policies to attract foreign investment in terms of land pfer and taxation.

In particular, the situation of Global trade protection this year may be even more severe, especially for China.

China has surpassed Germany to become the world's first export power. Under such circumstances, the international trade protection against China will only be more frequent.

In 2009, over 100 cases of trade frictions involving Chinese products were involved in the year. The amount involved was about US $12 billion, both of which doubled over the same period.

China has become the world's largest anti-dumping investigation for 15 consecutive years. Therefore, it is a good choice to pfer some labor-intensive industries to ASEAN countries, especially Vietnam.