Competition And Cooperation Bureau: China And ASEAN's Textile And Garment Trade

China has no competitive advantage in relatively low value-added garment processing. With the advantage of cheap labor cost and the improvement of garment production and management level, ASEAN countries still have much room for improvement in clothing exports in the future. However, the ASEAN countries' textile and apparel industry chain is not yet perfect, and ASEAN still needs to import large quantities of imports from China in the next few years.

As the most active countries and regions in the world's textile and clothing trade, the establishment of China ASEAN Free Trade Area (CAFTA) has promoted the rapid growth of bilateral import and export trade.

In the first half of this year, ASEAN was most eye-catching in several major export markets of China.

According to the statistics of China Customs, the import and export volume of textile and clothing between China and ASEAN reached 1~6 US $10 billion 230 million this year, an increase of 40.8% over the same period last year, of which 9 billion 300 million US dollars were exported, 41.1% increased, and imports 930 million US dollars, an increase of 38%.

At present, ASEAN has become one of the fastest growing regions of China's textile and clothing exports.

In 2010, when China ASEAN free trade area was put into operation, China's textile and apparel to ASEAN

In 2011 1~6, my textile and garment exports to ASEAN increased further, reaching 9 billion 300 million US dollars, an increase of 41.1%, exceeding the average growth rate of 25.8% over the world, accounting for 8.3% of China's textile and garment export share. For the first time, it surpassed Hongkong, China, ranking fourth in the export market, and 2 percentage points higher than that before 2009.

Ranked by the state, Vietnam ranks ninth among the top 30 export markets in China, seventeenth in Indonesia, seventeenth in Malaysia, twenty-eighth in Philippines, and 29 in the list.

The remaining four countries ranked thirty-first in Thailand, thirty-fourth in Singapore, forty-second in Kampuchea, and fifty-fifth in Burma.

Since the beginning of this year, due to the rising labor costs in China, European and American garment manufacturers have begun to pfer orders to ASEAN countries.

Despite the rapid development of the textile and garment industry in ASEAN countries in recent years, the production level of some textile enterprises is still unable to meet the requirements of European and American businessmen.

At present, China has become the largest supplier of fabric in the ASEAN region.

In the first half of this year, China accounted for the highest share of textiles and clothing exports to ASEAN, reaching 50.9%, with an export volume of 2 billion 985 million meters, an increase of 17.5%, and an export amount of 4 billion 730 million US dollars, an increase of 53.1%.

Among them, the largest export volume of cotton cloth, exports 750 million meters, an increase of 9.6%, the export volume of $1 billion 470 million, an increase of 54.5%, followed by the export of chemical fiber cloth 1 billion 300 million meters, exports amounted to 1 billion 440 million US dollars, an increase of 24.8% and 57.8% respectively.

Clothing accounted for 23.6% of the export share, exports amounted to US $2 billion 190 million, an increase of 15.7% over the same period last year, and the export of cotton garments increased significantly. Cotton knitted fabrics and knitted apparel increased by 74.5% and 31.7% compared to the same period last year.

Exports of manufactured goods and yarns were 1 billion 710 million and 660 million US dollars, up 45.7% and 53.1% respectively.

In addition to Brunei and Laos, China's textile and clothing exports to the remaining 8 ASEAN countries increased in the first half of this year.

Exports to Vietnam, Indonesia, Kampuchea and Burma increased by 51%~64%, and exports to Malaysia, Philippines, Thailand and Singapore increased by 14%~36%. Among them, the export characteristics of the main destination countries were as follows:

Vietnam: at present, Vietnam is the second largest export market for fabrics in China after Hongkong, China. Fabric exports account for 61.6% of Vietnam's textile and clothing exports.

Textile exports in the first half of this year amounted to US $1 billion 860 million, an increase of 70.9% compared to the same period last year. The main export products were cotton cloth, exported 700 million US dollars, increased by 79.9%, and the export unit price was 1.84 US dollars / m, an increase of 33.1%.

Exports of manufactured goods and garments were 483 million and 416 million US dollars, up 63.8% and 18.7% respectively.

The export of yarn to Vietnam was 260 million US dollars, an increase of 120.2%, and the yarn of chemical fiber accounted for Vietnam's yarn export. The unit price increased by 23% compared with the same period last year.

Indonesia: in the first half of this year, China exported 120 million US dollars to Indonesia's yarn, an increase of 87.8%, accounting for 7.2%, of which cotton yarn and chemical fiber yarns increased by 110.6% and 84.2% respectively.

Exports of fabrics to Indonesia amounted to US $988 million, accounting for 61%, an increase of 57.5%. The export price of cotton and chemical fiber fabrics was 2.29 US dollars per meter, 1.06 US dollars per meter, and the unit price rose 40% and 15.6% respectively.

In manufactured goods, Indonesia's demand for industrial textiles grew faster, and exports increased by 180 million US dollars, an increase of 56%.

Garments, knitted apparel exports 150 million US dollars, an increase of 13.6%.

Malaysia: in the first half of this year, China's clothing exports to Malaysia amounted to US $600 million, accounting for 49.9%, an increase of 9.2% over the same period last year.

Cotton knitted and woven garments were exported 270 million and 50 million US dollars respectively, up 7.3% and 45.6%, and the unit price rose 29.5% and 34%.

The export of knitted fabrics made of chemical fiber was 110 million US dollars, down 16.6%, and the unit price increased by 65.1%.

Fabric exports amounted to US $270 million, an increase of 15.8% over the same period last year, and the average export price increased by 27.3% over the same period last year.

Yarn exports 60 million US dollars, a slight decrease of 1.7% over the same period last year.

The rising prices of raw materials and the rising cost of power have pushed up the export prices of textiles and clothing to a certain extent.

In particular, the rise in cotton prices has led to a substantial increase in the price of cotton yarn exported to ASEAN countries.

From the export prices, yarn export prices rose the highest, reaching 4.13 US dollars / kg, an increase of 37.4%, of which the export price of cotton yarn reached 6.15 US dollars / kg, an increase of 61.4%, the highest price for Kampuchea and Burma cotton yarn export, 6.98 US dollars / kg and 6.9 US dollars / kg, respectively, up 50% and 57.3% respectively; the export price of wool and animal yarn yarn decreased slightly, 34.44 US dollars / kg, down 4.9%.

Fabric exports 1.61 US dollars / meter, an increase of 30.3%, of which cotton and chemical fiber cloth export prices were 1.95 and 1.1 U.S. dollars / meter, an increase of 41.1% and 26.4%.

In garments, the unit price of woven garments increased rapidly, with an average of 3.1 US dollars / pieces (set), an increase of 45.9%, of which cotton and chemical fiber were the main export items, and the unit price increased by 35.9% and 42% respectively.

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With the rapid growth of ASEAN exports, China's imports of textiles and clothing from ASEAN also showed a relatively rapid growth momentum.

In 2010, imports of textiles and garments from ASEAN increased by US $1 billion 580 million to 48.4%. In the first half of this year, we imported 930 million US dollars, an increase of 38%.

Among them, yarn imports amounted to 480 million US dollars, an increase of 31.4%, fabric imports of US $150 million, an increase of 11.2%, imports of manufactured goods by US $100 million, an increase of 28.3%, the import of garments increased exponentially, and imports reached US $200 million, up 1.1 times over the same period last year, of which knitted apparel imports 70 million US dollars, an increase of 83.6%, and imports of woven garments 90 million dollars, an increase of 70 million times.

ASEAN accounts for an increasing share of China's textile and garment imports.

In the first half of this year, China's imports of textiles and clothing from ASEAN rose to 8.5% from global imports, an increase of 2.1 percentage points over the same period in 2009.

Compared with other major importing countries in China, the growth rate is higher than that of the main importing countries such as Italy, France, Japan and Korea.

At present, China's imports of textiles and clothing from ASEAN are mainly concentrated in four countries, namely Vietnam, Thailand, Indonesia and Malaysia.

In the first half of this year, imports of textiles and clothing from above four countries were over $100 million, which were imported from Vietnam for 340 million US dollars, an increase of 67.6%; Thailand's 230 million dollars, an increase of 22.2%; Indonesia's 170 million dollars, an increase of 17.1%; Malaysia's 110 million dollars, 32.7% growth.

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With the rise of domestic labor costs, the price of production factors and the appreciation of the renminbi, China has no competitive advantage in the relatively low value-added garment processing. On the contrary, with the advantage of cheap labor cost and the improvement of garment manufacturing and production management level, ASEAN countries still have much room for improvement in garment export in the future, and become a strong competitor to China.

However, the textile and apparel industry chain of ASEAN countries is still not perfect, especially due to the low level of main technology such as product design, printing and dyeing, finishing and so on. In the next few years, ASEAN still needs to import a large number of garment materials and garment accessories from China.