Japan Intends To Invest In Indonesia To Replace China'S Clothing Production Base

< p > from Japanese economic news in December 5th, it is learned that Japanese enterprises will expand garment production in < a href= "http://www.91se91.com/news/index_p.asp" > Indonesia < /a >.

MITSUBISHI plans to invest 6 billion yen before 2016, and build 7 joint venture factories in Indonesia to provide OEM (OEM) to Japanese and European and American garment enterprises.

In addition, NISC will introduce the latest textile and garment processing equipment in Indonesia plant, and plan to increase the production capacity of shirts by 10 to 20% in 2015.

More and more Japanese enterprises are planning to build the country into a major garment production and processing base instead of China in the future.

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< p > in the share of textile exports to Japan, Indonesia's share of exports in 2012 was only 3%, far below that of 74% of China.

However, Indonesia has only 1/4 of the labor cost in China, and the infrastructure such as roads, ports and power supply in Burma is very complete compared with those in the countries such as Bangladesh and other countries that are paying close attention to the production base.

Therefore, Japanese companies hope to expand production in low-cost Indonesia to ensure stable supply of commodities.

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< p > > a href= "http://www.91se91.com/news/index_s.asp" > MITSUBISHI commercial < /a > will build 7 factories in Central Java in Indonesia by 2016.

The company has been engaged in garment OEM production as a center of China's joint venture factories. China accounts for about 70% of the total production.

Due to the rapid rise in labor costs in China, Indonesia will be actively used as a production base in the future.

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At present, the MITSUBISHI business has established a joint venture with the Indonesian garment enterprise Pan Brothers in Java.

The joint venture company has a registered capital of about 90 million yen, while Pan Brothers accounts for 85% of its contribution ratio and MITSUBISHI business accounts for 15%.

The joint venture will invest about 6 billion yen in 7 factories, and plans to put 4 factories into production in 2014.

The output and category will be finalized in the future, but will include coat and trousers.

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< p > in addition, NJC will invest 3 billion to 4 billion yen in total to achieve automation of production equipment in Indonesia's textile and sewing factories and will enhance production capacity.

First, we will introduce the most advanced equipment that can produce high functional shape fixed (processing) shirts.

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< p > the factory now produces cloth, and its production capacity can reach 19 million pieces throughout the whole year, and most of its products are exported to Japan.

Exports will also be exported to Europe from the autumn of 2014.

In 2015, it will invest another 2 billion to 3 billion yen, and the capacity will be further increased by 10% to 20%.

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Besides, P also plans to open a direct factory in Indonesia before next spring.

In the field of clothing and textiles, Japanese enterprises are increasing their production bases in Indonesia.

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The P business plan has started in Burma since mid August to produce women's clothing brands for 2 department stores, namely, a href= "http://www.91se91.com/news/index_f.asp" and down garments "/a".

Take part of the long feather down garment with fur, for example, the selling price in Japan is close to 30 thousand yen (about 2402 yuan), compared with the production in China, the cost can be reduced by around 5 thousand yen (about 400 yuan).

In the future, production of men's trousers and so on will also be pferred to Burma.

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In addition to the soaring labor costs, ensuring labor supply is also a problem in China. < p >

The labor cost in Burma is very low. It is only 1/5 in China. Because the supply of guarantee personnel is very easy, the San Yang chamber of Commerce decided to place the production in the sewing factory near Yangon.

Since Burma can apply Japan's preferential tariff system for developing countries, the export of products to Japan can be exempt from customs duties, and this advantage will also be reflected in the selling price.

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The overseas production ratio of the P is 70%.

China accounted for 55% and Vietnam accounted for 15%.

3 years later, China's share will be reduced to 45%, while Vietnam will continue to maintain 15%, while Burma and other places will increase to 10%.

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< p > Nwad Jian Shan plans to take advantage of the factory that the women's clothing company bought in April this year and so on in the "a href=" http://www.91se91.com/news/index_p.asp "Vietnam" < /a >, will produce its own brand clothing in Vietnam, and the proportion of Southeast Asia's production will increase from the current 5% to 2014 in 20%.

On the other hand, the proportion of production in China will be reduced from 75% to 65%.

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P TSI, Japan's TSI Holdings Limited, which also focuses on department store brands, plans to increase the proportion of Southeast Asian production to about 30% by just 2015.

In the future, the production of casual wear and sportswear will shift from China to Southeast Asia.

Japan's World Group, which produces about 60% of China's production, is also planning to shift production to Vietnam and other places.

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< p > due to the impact of the rise of low-priced clothing such as "a href=" http://www.91se91.com/news/index_h.asp "UNIQLO" /a "and other foreign fast fashion brands, consumers are increasingly fastidious about their price requirements.

As the sales channel of large garment manufacturers, the customers of Japanese department stores are heading to boutiques and fashion stores. As of last year, sales have declined for the 15 consecutive year.

The current situation requires that clothing companies, with high added value in design and other aspects, also have to sell at lower prices.

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< p > observing Japanese trade statistics, we can see that in the 1~6 months of this year, the volume of clothing imports from the ASEAN region increased by 22% over the same period last year, which is in sharp contrast with the 4% decline in China.

With the signing of the economic cooperation agreement (EPA) between Japan and ASEAN, the tariff of textiles has been abolished, which also makes the advantage of ASEAN more obvious.

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< p > the fastest growing products are "a href=" http://www.91se91.com/news/index_f.asp "> polo shirt" /a "(polo shirt) and sweater knitwear, and the fastest growing area is Burma and Kampuchea, which began to relax in April last year.

The import volume of knitted goods from the two countries which did not need to pay tariffs increased by 50% over the same period last year, and grew rapidly.

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Beyond P, this trend is similar to those facing department stores.

Japan's good luck program, which operates comprehensive grocery stores, plans to increase the proportion of knitted goods in Southeast Asia to 70% this year.

Before that, 70% accounted for China.

The production base of complex products such as coats and jackets will also be pferred to Southeast Asia in the future.

In addition, the Castle Peak commercial plan for men's wear will increase the number of Kampuchea's cooperative factories from 1 to 3 this year.

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