Hongkong Garment And Footwear Industry Vietnam And Kampuchea Delegation

May 14, 2008 - faced with rising cost pressures in the PRD, some Hongkong producers are considering shifting production bases to inland or other regions, such as Vietnam and Kampuchea in Southeast Asia.

The Hongkong Trade Development Council (Hongkong Trade Development Council) held the "Hongkong garment and footwear industry Vietnam and Kampuchea inspection mission" from 5 to 9 May, so that the garment and footwear industry representatives who wish to move to the production base will inspect the possibility of relocation.

The delegation was led by Zhong Guobin, director of the manufacturing industry development of Hongkong TDC, and chairman of the Hongkong garment industry association, and the Hongkong footwear industry association Dong Qiu Li, together with 29 representatives from Hongkong garment industry and 14 representatives from Hongkong footwear industry.

Faced with the pressure of rapid increase in production costs in Guangdong, many Hong Kong businessmen are considering and looking for new production bases. Zhou Rui said: "the purpose of this trip is to let them have a deeper understanding of the investment environment in Vietnam and Kampuchea, and help them assess the possibility of relocation of the plant."

During the five day's inspection, industry representatives visited the local production base and factories of different sizes.

The delegation also arranged for local officials to introduce Vietnam's main production base of Longan Province, the industrial zone of Kampuchea, and the Phnom Penh special economic zone of Kampuchea.

Representatives of the garment industry visited two Vietnamese and three Kampuchea factories, including Vietnam's largest garment manufacturer and exporter successful garment and textile company, which has 5000 employees and exported to 50 international brands worldwide.

They also visited the German group, the largest Hong Kong garment factory in Phnom Penh, which employs 15000 people worldwide and is the largest investor and employer in Kampuchea.

The footwear industry representatives also visited two Vietnamese and two shoe manufacturing factories in Kampuchea, including different scale and business mode production lines, including Taiwan capital producers, Hong Kong manufacturers and Chinese manufacturers, so that the industry can understand different production modes.

Liu Jingxian, managing director of Lijun Shoes Co., Ltd. said: "this trip has given me a better understanding of the investment environment, hardware and software facilities and actual operation of the two locations, and also has the opportunity to establish a network with local officials and industry to facilitate further investigation and investment in the future."

Liao Jingchang, Chang Fu Industrial Limited, said: "free trade is an important consideration for investors. One of Kampuchea's biggest advantages is free economy and no foreign exchange control."