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    Ningbo Garment Industry Is In Urgent Need Of Industrial Upgrading.

    2013/12/29 10:47:00 16

    NingboClothing IndustryIndustry

    In view of cheap labor and land resources, as well as relatively loose foreign trade environment, manufacturing industry in Southeast Asia is rising further. Adidas shutting down China's domestic factories and transferring its capacity to Burma, where customers have moved to Bangladesh, Samsung has also spent $2 billion to build new product lines in Vietnam. Many entrepreneurs in Ningbo have also thought of moving their production lines to Southeast Asia.


    Some experts believe that the transfer of manufacturing industry to Southeast Asia in the same period as the manufacturing center from Japan and Korea to the Southeast Asia is in line with the law of economic development, which may have a certain impact on Ningbo's foreign trade. But what is more crucial is how to accelerate Ningbo's industrial upgrading after the relocation of manufacturing industry.


       "Southeast Asian manufacturing" rush to Zhejiang foreign trade orders


    "I am engaged in this year. Garment foreign trade Business is the most difficult year in 30 years. " Wang Dingying, general manager of Taiping bird import and export company, said.


    Ningbo Taiping bird import and export company is mainly exporting to Ningbo. It is a large scale foreign trade enterprise, but its business is not good this year. Quotations are no longer suitable for factories in Southeast Asia, but many foreign trade orders have been transferred to Southeast Asia. Wang Dingying said that WAL-MART's orders had 1 million to 1 million 500 thousand shirts and T-shirts, but the price of each item was only fifteen yuan and six yuan. The factories in the Yangtze River Delta simply could not afford such a price, and even the cost was not enough. Therefore, a large number of foreign trade orders were transferred to Southeast Asia, especially in Vietnam, Kampuchea and Bangladesh in South Asia.


    "Manufacturing in Southeast Asia" is constantly nibbling orders for Ningbo's foreign trade. Ningbo customs official said this year, although the consumption of traditional European and American markets is getting warmer and warmer, a large number of orders have not correspondingly returned to China, but transferred to Southeast Asian countries.


    At present, Vietnam has become the second largest source of imports in the EU shoe and hat Market. China's garment manufacturing and some garment supporting industries are also increasingly shifting to ASEAN. In addition, Vietnam's footwear products will officially enjoy preferential tariff preferences (GSP) for EU exports from January 1st next year, making Chinese exports more competitive.


    In addition, apart from the China ASEAN Free Trade Area, ASEAN has established a free trade area with Japan, South Korea, India, Australia and New Zealand. Singapore and Malaysia have also established a free trade zone with the European Union. Vietnam is negotiating with the EU in the FTA. Thailand and the EU have also initiated negotiations on the FTA. At the same time, the "trans Pacific (601099, stock bar) strategic economic partnership" (TPP) will exacerbate trade diversion and reach 7 in ASEAN member countries. The close trade between the developed economies and ASEAN will weaken the trade creation effect of China ASEAN Free Trade Area.


       ASEAN's cheap cost attracts Ningbo's manufacturing industry to move out


    The relatively low labor costs and the constantly improving investment environment in Southeast Asia not only attract foreign trade orders from European and American merchants, but also attract a large number of foreign trade enterprises in Ningbo to invest. At present, YOUNGOR, Shanshan, Shenzhou, Changlong Guotai, lion Dun, Dafa chemical fiber, Bailong and other garment enterprises have already established their own production bases in Southeast Asian countries. The main investment countries are Vietnam, Kampuchea and Bangladesh near Southeast Asia. In addition, Yongfa group, Tai Yuan bicycle industry, Nanyuan group, Zhongji Ningbo group and Silver billion group have also invested in Southeast Asian countries.


    According to the statistics released by the Municipal Bureau of foreign trade and economic cooperation, the investment of our city's enterprises in Southeast Asia is very active and maintained at a higher level. From the perspective of investment countries, our city has invested 9 other Southeast Asian countries besides Brunei. In the first 11 months of this year, 19 enterprises in our city invested in Southeast Asian countries, and approved the Chinese investment to reach US $185 million. So far, our city has invested 420 projects in Southeast Asia, approving the Chinese investment amount of US $736 million, and the actual Chinese investment is US $350 million.


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    "Investment projects in Southeast Asia are mainly clothing, mining and trade projects. There are not many other industrial projects such as appliances, moulds and so on." Xu Jianhua, deputy director of the Ningbo Municipal Bureau of foreign trade and economic cooperation, said: "for the labor-intensive industries such as clothing, because of the increasingly prominent labor cost advantage in Southeast Asia, industrial transfer is imminent."


    "Kampuchea Garment workers The monthly salary is about 70 dollars, Vietnam is about 150 dollars, Bangladesh is about 100 dollars, which is obviously lower than the minimum monthly salary level of 2500 yuan in Ningbo. Shen Gongcan, general manager of Ningbo en Kai textile import and Export Corporation, said: "this is the most valued advantage of clothing enterprises investing in Southeast Asia. Besides, European and American countries have the most preferential tariff treatment for Kampuchea and no barriers to trade barriers."


    Ye Wanyin, associate professor of Zhejiang Textile and Fashion College, believes that the transfer of production lines to Southeast Asia by Ningbo garment enterprises can not only maintain the original cost advantage to maintain exports to the European and American markets, but also expand the local market, and also make room for the transformation and upgrading of Ningbo's garment industry, which is of great strategic significance.


      Raw materials and technology are still the advantages of Ningbo.


    However, Ningbo's investment in Southeast Asia is only one of its manufacturing bases, instead of moving all production factories to Southeast Asian countries. Yongfa group set up a production base in Vietnam 3 years ago, but Hu Xiaoliang, general manager of Yongfa group, said that the Vietnamese factories only assembled the parts that were produced by the Qinzhou factory in Guangxi, and sold them to Southeast Asia and India after finished products. "The technology of workers in Southeast Asian countries is only about our level in the 90s of last century, and the supporting industries such as moulds and finishing processes are not developed, so it is difficult to transfer the industry to the past. To achieve the current level of domestic technology, it will take at least 5 years. Hu Xiaoliang said.


    Zhang Xiaofeng, vice president and Secretary General of Ningbo Garment Association, believes that the impact on manufacturing of Chinese clothing (000902, stock bar) is mainly Vietnam, India, Kampuchea, Bangladesh and Burma. From the current level of development, most of the products transferred to Southeast Asia are clothing, shoes and hats, bags and other primary products. After decades of development in Ningbo, the advantages of manufacturing technology and equipment, raw materials and related facilities as well as logistics and transportation are obvious.


    Zhang Xiaofeng said, Clothing enterprise The production line that moves there can only produce shirts, jeans and underwear and so on. There are some factors that affect the design of the products which are changing less frequently. There are also some factors such as design level and raw materials. "For example, the women's clothing that we provide to European and American countries has many changes in design style. Many accessories and fabrics can not be produced in Southeast Asia. If we set up factories in Southeast Asia, then the raw materials must be exported from the domestic market. If the other party adds orders, the production lines of Southeast Asian factories must stop and wait for raw materials, so the factory's losses will be great."


       Ningbo should take the opportunity to speed up industrial upgrading


    Zhang Handong, director of Zhejiang international economic and Trade Research Center, believes that in recent two years, Zhejiang's manufacturing industry, especially the garment industry, has accelerated to transfer to Southeast Asian countries such as Burma, Thailand and Bangladesh, which is in line with the laws of the market economy. The global manufacturing industry has been shifting from the developed countries to the emerging economies represented by the "four Asian dragons" and then transferred to the mainland of China. With the depletion of the domestic demographic dividend, the manufacturing center is gradually shifting to the Southeast Asian countries with lower labor prices.


    "The relocation of manufacturing industry is only the first step in" cage changing birds ". The key is how to develop next. Zhang Handong said that Zhejiang should carry out structural adjustment and industrial transformation and upgrading, and turn the "investment attraction" into "investment and capital selection". After the traditional manufacturing industry moved to Southeast Asia, it will increase the development of new and high technology industries, high-end manufacturing and service industries, and achieve the upgrading of industrial quality. "The manufacturing industry has been shifting, but the transformation is bound to lag behind the development left behind, which has been evident in the development of developed countries such as Europe, America and Japan. Zhejiang turns the production line of clothing, shoes and hats, and then develops new industries such as new energy, Internet of things, biomedicine and so on.


    Ningbo garment industry is also undertaking industrial upgrading according to this line. After a large number of enterprises set up production bases in Southeast Asia, the Ningbo clothing association is now promoting the development of clothing design industry and the development of brand operation institutions. "Now designers in developed regions such as Europe, America, Korea and Japan have also targeted the Ningbo garment industry, hoping to cooperate with Ningbo enterprises. Our association is also introducing some design organizations to set up designer Specialized Committee, so that the short board of Ningbo clothing will be developed as soon as possible. Zhang Xiaofeng said.


    According to introducing, at present, Ningbo has begun to emerge independent design institutions. There are ER men's wear, Mai Zhonglin's dress, MILDBIRD (Millie bird) and other designer brands, and there are young designers such as Cai Zeen, Ceng Liping, Fang Bin and so on.

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