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    Who Will Undertake The Transfer Of Orders?

    2011/7/27 13:24:00 53

    RMB Economy

    Since the beginning of this year, the competition for textile and apparel export orders in Southeast Asian countries has gradually become more and more popular. Although China still occupies a dominant position in the textile and garment industry in Southeast Asia.


    However, due to the continued appreciation of the RMB and The labor With the rise of costs and other factors, some of the orders from European and American markets shifted to lower paid economies such as Kampuchea and Vietnam.


    Southeast Asian countries with a certain manufacturing capability have taken advantage of the situation, hoping to further share the European and Japanese import market.


    Vietnam and Bangladesh are in the limelight.


    In recent months, textiles and garments imported from Southeast Asian countries in the US and Europe have been increasing rapidly. Taking the US market as an example, the number of imports of clothing in the United States increased by 6.6% in the 1~4 months this year, but a slight decline has occurred since China's imports. On the other hand, other Southeast Asian major garment exporters (Bangladesh, Kampuchea, Indonesia and Vietnam) have increased the number of garments exported to the United States by more than 15%. If the statistics are based on the amount, the increase will be more obvious. Among the major exporters of textiles and clothing, Vietnam and Bangladesh are the most popular exporters.


    Thanks to the continuous improvement of the industrial chain, and the salary level is only half of China's labor cost advantages, Vietnam's textile export enterprises have been favored by more and more merchants from Europe and America. The largest in the world Trader Li Feng said earlier that the rise of China's labor costs has prompted its clothing procurement business to gradually shift to other Southeast Asia and other low wage countries. According to statistics, in the first half of this year, Vietnam exported $6 billion 160 million of textiles and clothing, an increase of 30% over the same period last year, of which 55% was exported to the United States. Vietnam has become the second largest importer of clothing in the US. In order to promote the development of the textile industry, the Vietnamese government recently issued the Vietnam textile and garment development plan in 2011~2020. In order to attract more foreign investors' investment, the Vietnamese government will build 13 textile factories with great potential. Vietnam Textile Group also said that during the planned implementation period, the Group intends to invest 43 trillion shield (about 2 billion 150 million US dollars) to develop the country's spinning, fabric and garment industry. Perhaps seeing the growth potential of Vietnam's textile industry, Adidas group began to consider shifting the production line to Vietnam oriented East Asian countries in phases, and the global sourcing giant WAL-MART also plans to transfer some of its small factory operations to Vietnam.


    Compared with Vietnam, Bangladesh's export performance is no worse. The global market research report recently published by the financial times shows that from the beginning of this year, the United States has increased 39% of its clothing imports from Bangladesh, and Bangladesh has become the fastest growing country for clothing exports to the United States. In order to enhance the international competitiveness of some garment manufacturing enterprises, the Central Bank of Bangladesh reduced the lending rate of 270 ailing clothing enterprises from 15% to 8%, effectively alleviating the cost pressure of enterprises. In addition, the governor of the central bank also agreed to increase the current export development fund of 400 million US dollars in order to continuously expand Vietnam's share of textiles and clothing in overseas markets.


    Preferential treatment is behind the scenes.


    If low wage advantage and government support measures are to be promoted Exit The accelerator of growth, then preferential tariff treatment for some countries in Southeast Asia to Europe and the United States is a behind the curtain that can not be ignored.


    There is no denying the fact that in order to prevent the huge influx of China's textile products from causing huge impact on domestic textile enterprises, the restrictive measures adopted by the US and Europe in recent years for China's textile imports are numerous. European and American clients' inspection and certification under the pretext of environmental protection and human rights are weakening the competitiveness of China's textile exports. In contrast, Bangladesh textile enterprises, because of the umbrella of "underdeveloped countries", have not yet been complained by any enterprises such as dumping. These enterprises enjoy the preferential treatment given by the developed countries. They only need to consider how to further expand production without having to worry about trade barriers at all.


    In addition to the negative impact of trade barriers on China's textile and clothing exports, higher tax rates make it difficult for Chinese textile enterprises to speak of cost advantages. It is understood that at present, China's exports to Japan, Canada and Australia and other markets for textiles and clothing, about 18%~23% of import and export tariffs, and Bangladesh's textile exports to these countries can enjoy zero tariff treatment. From this point of view, the tax relief benefits enjoyed by Bangladesh exporters can save considerable cost.


    Over the past two years, Vietnam is also actively striving for special "care" in the European and American markets. In October 2010, Vietnam joined the negotiation of the trans Pacific Strategic Economic Partnership Agreement (TPP). Once the TPP agreement is signed, 95% of Vietnam's textile exports to the United States will enjoy zero tariff, which is more conducive to expanding exports to the US.


    New strength, wings, waiting for Feng


    Although the export momentum of textile and clothing is booming in Southeast Asian countries, the imperfect industry chain restricts the development of the industry to a large extent. For Zara, a brand characterized by "fast fashion", speed is its competitiveness. The infrastructure of some Southeast Asian countries is lagging behind, and logistics bottlenecks will delay the delivery of goods. This is equivalent to committing a "fast fashion" taboo. Pablo Isla, chairman of Spanish brand Zara, said: "as we all know, the manufacturing capacity of suppliers in Southeast Asia is still lagging behind China. Manufacturers in these countries often need to import garments from China to make ready-made garments, so the cost of logistics is high and the production cycle is relatively long. In contrast, the industry chain of China's garment industry is perfect, suppliers supply rapidly and flexibly, and its comprehensive strength far exceeds that of Southeast Asian countries.


    Over the years, despite the constant changes in the external market environment, China is still the largest exporter of textiles and clothing products in the world. The reason is that China's textile industry has absolute advantages in many aspects such as industry matching, scale production, workers' overall quality and production technology. Vietnam, Bangladesh, Pakistan, India and other countries will hardly be able to replicate the competitive advantages and comparative advantages of our industry in the short term.


    Compared to the isolated efforts, the textile factories and garment manufacturers in Southeast Asian countries can improve their competitiveness quickly if they embrace the regional supply chain.


    For example, Vietnam does not produce denim fabrics, but is made in Indonesia, and its denim fabrics can be exempted from export duties within ASEAN. Vietnam can import a large number of denim fabrics from Indonesia to sew jeans, and then export to the United States, effectively reducing logistics time. In fact, the alliance strategy among Southeast Asian manufacturers has quietly started. Phongsak Assakul, a textile mill in Bangkok, Thailand, has pretreated dyed fabrics to land in neighboring Kampuchea, where a factory tailored these fabrics to make the summer coat of Italy brand Benetton (Benetton), which is sold all over the world.

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