Hongkong Clothing And Textile Chamber Of Commerce Said Hongkong Spinning Enterprises Diverge To Southeast Asia

The implementation of the new labour law in the PRD, coupled with the appreciation of the renminbi, has greatly increased the cost of labor and raw materials, and many enterprises in the Pearl River Delta are facing a lot of pressure on Hongkong.

Henry, the former chairman and honorary chairman, warned the industry that faced with cost challenges, it would be easy to estimate the life span of enterprises if they did not consider the cheaper places to withdraw.

Moving out of the PRD and moving to low-cost Southeast Asian countries, such as Philippines, Burma and Vietnam, seem to be the way for Hong Kong businessmen to save themselves.

It is not difficult to find out the history of Hongkong's industrial development. It is easy to find that the industry has been able to adjust measures to local conditions for many years, and lay a way for itself in due course.

In 80s, the cost of manufacturing in Hongkong gradually increased, and Hong Kong businessmen moved their factories to the Pearl River Delta. There were no exceptions in the whole industry. Most of the textile and garment factories in the Pearl River Delta were Hong Kong businessmen.

Chen Henry pointed out that

There are differences in operating costs, believing that T-shirts are becoming less and less knitted, and only sweater manufacturers and underwear factories can be maintained, mainly because of the large number of mechanized weaving factories, with few manpower and competitiveness.

But if we rely heavily on labour production, we must choose where the cost is cheaper.

Chen Henry described the textile and garment industry in Hongkong as very difficult at the moment and is in deep water.

The manufacturing industry faced structural problems in recent years.

Worry.

Chen Hengli said that in the past, Hong Kong businessmen had an invincible cable, that is, Hong Kong enterprises had a high degree of familiarity with foreign countries.

The business mode mostly uses the cheap cost of the PRD, including tax and other advantages to develop business.

However, the cable has not been established for nearly 3 to 5 years, and the PRD is no longer cheap, no matter wages, government policies and business environment are extremely difficult.

Chen Hengli explained that the average monthly salary of every worker in the Pearl River Delta is about 460 dollars, but in Southeast Asia (for example, Philippines), it only needs about 260 dollars, and the cost in other areas is lower. Vietnam is about 150 to 180 dollars, and Kampuchea is between 120 and 130 dollars. Compared to the production in the South China mainland, it is far from the cost of Southeast Asia, even the more expensive Philippines, 460 dollars and 260 dollars.