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    The Textile And Garment Industry Will Eventually Shift To Low Cost Regions.

    2010/7/27 9:59:00 50

    Textile And Garment Industry

    China's market economy reform is a revolution from scratch. There is no capital and no technology. The only one is abundant and cheap human resources. From labor force Intensive type The beginning of the low end manufacturing industry is also the choice that only "comparative advantage" forced.


    Textiles, Clothing industry This is a fact that belongs to the most labor intensive low-end industry. Coupled with environmental regulations and imperfect labor protection laws, textile enterprises can almost do whatever they want at the expense of the environment and the development of labor costs.


    The wage surge in 2010 reflects the general trend of labor shortage in China, which has been hard to resist in reality and will greatly cut down the growth rate of China's economy. China's labor supply is expected to reach its peak and begin to decline in 2015.


    Meanwhile, in the textile and garment industry, one of the most labour intensive industries, Vietnam and Pakistan are only 1/3 of the labor force in China. Bao pointed out that the minimum monthly salary in China's coastal provinces is 117 to 147 dollars in dollar terms, while in Bangladesh it is only 24 dollars. Bangladesh, a well paid garment worker, earns only 64 dollars a month.


    according to World Trade Organization It is estimated that Bangladesh is the third largest garment exporter after China and Turkey. Bangladesh has a population of 160 million, of which 70 million of the workforce is estimated to be an alternative to 20 million jobs in China. Li&Fung, a Hongkong company supplying clothing to business giants such as WAL-MART, increased its production in Bangladesh by 20% last year, while its production in China dropped by 5%.


    Of course, there are still many obstacles to be overcome in countries like Bangladesh. Worst of all, education is not universal. Literacy rate is only 55%, far from China's 92% level. As a result, the productivity of workers in this country is only 1/4 of that of Chinese workers.


    In addition, the backwardness of infrastructure is also a bottleneck for development. There is no power and power network like China, and even 6 to 7 hours a day is in power failure. However, in the early days of reform and opening up, China was lagging behind and catching up very quickly. Surprisingly, Bangladesh's clothing exports doubled from 2004 to 2009 under such backwardness. Besides, there are many places like Bangladesh in the world.


       Editor's comment: if the textile industry says that the prosperity created by this model is a miracle, then the end of this model will suddenly exceed people's expectations.

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