China'S Textile Manufacturing Industry Is Also Preparing For "Immigration" Overseas.

China's textile industry is facing unprecedented difficulties this year. Domestic and foreign cotton spreads are still fluctuating. Growth in developed markets such as Europe, America and Japan is lower than expected. The development market has seen a marked decline, and the comparative advantage of China's textile and garment industry is gradually disappearing.

In order to fight for orders in fierce competition, many textile and garment enterprises have shifted their manufacturing base to Southeast Asia where production costs are lower.

Some people have pointed out that China's textile manufacturing industry has shifted overseas and is shifting from clothing to upstream yarn, dyeing and finishing in the industrial chain.

Rush to Southeast Asia for investment opportunities

More and more textile and garment enterprises have joined the army to invest in Southeast Asia.

The head of a textile enterprise in Fujian told reporters that the investment in Southeast Asia was still at a wait-and-see stage in previous years. Now many enterprises have begun to take practical actions.

At the beginning of this spring, the company went to Dhaka to attend the Bangladesh garment textile fabric exhibition. After that, the textile and garment industry of the country was deeply investigated.

During the inspection tour in Bangladesh, the company found that many domestic enterprises also visited the Bangladesh with the same purpose.

Quite a few

It shows that some textile enterprises are now gathering to visit southeast Asia for investment opportunities.

For example, a dozen textile and garment export enterprises in Quanzhou, Fujian, and shortly after Bangladesh visited the textile and garment industry for 12 days in the beginning of the year, they also joined in an inspection tour of Kampuchea's textile and garment industry.

According to the enterprises who participated in the inspection tour of Kampuchea's textile and garment industry, they met with the Guangdong cowboy clothing industry organization to visit Cambodian visiting enterprises when they inspecting the Guangdong Special Economic Zone in the longlongji.

Southeast Asia has become a hot spot for Chinese textile enterprises to invest overseas.

In recent years, the market downturn, export difficulties, rising costs, and the difference in cotton prices between inside and outside have made most textile and garment exporters feel the unprecedented survival crisis and development pressure.

This is the main reason why Chinese textile companies are keen to invest in Southeast Asia.

Especially in private small and medium textile and garment production enterprises, the difference between domestic and foreign cotton per ton of cotton is 4000~5000 yuan, and only one raw cotton needs to pay higher cost.

At the same time, labor costs increase year by year. Textile and clothing as traditional labor-intensive industries, the labor cost of enterprise expenditures increases year by year by 15%, and often suffers from labor shortage.

At the same time, the successful effect of some textile and garment enterprises that go out earlier also let more textile and garment enterprises have the impulse to go out.

According to relevant information, in recent years, more than 30 Fujian Quanzhou enterprises going out to Southeast Asia to invest in factories have driven Quanzhou's export of ASEAN's textile fabrics and textile machinery equipment to 451 million and 176 million US dollars respectively, up 33.1% and 21% respectively over the same period last year.

These enterprises, which first invested in Southeast Asia, have made profits both inside and outside China, attracting more companies to invest in Southeast Asia.

Enterprises that invest in Southeast Asia first are mainly garment enterprises.

Some clothing companies have reduced cost pressure by investing in places with lower processing costs in Southeast Asia.

Wang Yihuang, a Huizhou Bowen clothing company, said that enterprises had processing plants in Vietnam, and half of their manufacturing capacity had been pferred to Vietnam.

After the pfer of enterprise productivity to Vietnam, the cost is much lower.

Ningbo Ledano Group Co., Ltd. has built factories in Kampuchea and Burma, because in the lower cost of Southeast Asia to build a larger processing base, Ledano can cope with the declining prices of orders in recent years.

Now many large enterprises have begun to invest in garment factories in Southeast Asia.

On the night of December 2, 2013, the famous textile enterprise Lu Tai textile Limited by Share Ltd of Shandong announced the announcement of foreign investment. It said it plans to invest $8 million to set up a wholly owned subsidiary, Lu Tai (Kampuchea) Co., Ltd. in Kampuchea, mainly engaged in the processing and sales of shirts, and the production scale is 3 million shirts per year.

In March 26, 2014, the announcement announced that it would invest an additional $12 million in investment for the Kampuchea limited company with a total investment of US $20 million.

Besides garments, some yarns and dyeing and finishing enterprises have begun pferring their production bases to Southeast Asia.

Huafu color spinning Limited by Share Ltd is the leading global color spinning industry.

The company announced in December 2013 that it plans to invest $136 million to set up colored spinning enterprises in Vietnam.

On March 2014, at the 2013 annual performance briefing of Huafu color spinning, Sun Weiting, chairman of the company, said that

This year's project is mainly located in Vietnam.

The first half year report of Huafu color spinning announced recently that Vietnam project was put into operation in the four quarter.

Bailong Oriental Limited by Share Ltd invested nearly $100 million in Vietnam in November 2012, and invested an additional US $150 million in January this year.

It is understood that the Limited by Share Ltd is mainly engaged in R & D, production and sales of colored spun yarn, and its products include pure cotton yarn dyed yarn, blended yarn, etc. it is the leading color spinning manufacturer in China.

Cost forced peron and Huafu to invest heavily in Vietnam to build factories. This is also a common problem faced by Chinese textile enterprises.

With the introduction of cotton subsidy policy next year, the domestic and foreign cotton prices will narrow until convergence. A major driving force for overseas expansion of textile enterprises may be weakened. However, the cost of domestic labor, environmental protection, land and so on will continue to grow, and the trend of spinning enterprises to pfer production bases to foreign countries will not change.