Textile Enterprises In Europe And The United States To Build Factories Become A New Choice

Affected by the strike, Cambodia Clothing enterprises have raised the wage standard of local workers, and the labor cost in Southeast Asia has lost the advantage of low price. Recently, more and more domestic textile enterprises have set up factories in European and American countries. On the one hand, it can reduce transportation costs, on the other hand, it can also promote the transformation and upgrading of enterprises.

Increased production costs in Southeast Asia

According to media reports, under the pressure of the workers' strike, the Cambodian Ministry of labor announced to raise the minimum wage of the clothing industry by 25% to $100 a month. However, the workers in the industry are still dissatisfied and demand that the minimum wage be raised to $160 a month. After negotiation, a number of shoe and clothing manufacturers in Cambodia are about to adjust their monthly salary from $80 to $100.

Because of the low cost of labor and rent, more and more people in our country Textile enterprises Choose to build factories in Southeast Asia. Recently, Lutai Textile Co., Ltd. announced that it plans to invest 8 million US dollars to build a new shirt processing factory with an annual output of 3 million pieces in Cambodia. It is understood that enterprises such as Lutai have set up factories in Southeast Asia. Since 2004, in the process of China's manufacturing industry gradually moving outward, nearly 200 garment enterprises have built their production bases in Southeast Asia.

Xiong Xiaokun, a senior light industry researcher, pointed out in an interview with the media recently that most enterprises shift to Southeast Asia because of their low production costs. However, the labor technology level of Southeast Asian countries is not high, and the management is difficult and the production efficiency is low. In addition, they have to bear the suffering of "strike events" in these countries. At present, Southeast Asian countries are increasingly calling for higher wages, which will greatly reduce the attractiveness of enterprises to invest and build factories, and the number of Chinese brands transferred to Southeast Asia is bound to decrease. Industry insiders say that because the time lag between the rise in labor costs has gradually shortened, it is no longer meaningful for Chinese brands to move to Southeast Asia.

The reporter learned that for Nike Adidas Baocheng Industry Co., Ltd., the world's largest shoemaker, is transferring part of its production lines to Indonesia, Vietnam and other Southeast Asian countries. This incident of increasing workers' wage standards in Cambodia will increase the production costs of Baocheng's local factories. "With the increasing demand for labor costs, the cost advantage of Southeast Asia may no longer exist. However, enterprises that have built factories in Southeast Asia may not return to China in a short time. These enterprises have been basically stable in Southeast Asia. Although the labor cost has increased, it is still lower than that in China. " Xiong Xiaokun said.

　 Great potential to build factories in European and American countries

Recently, Zhejiang Keer Group Co., Ltd., a leading cotton textile enterprise, announced that it would spend 218 million US dollars to open its first overseas factory in Lancaster County, South Carolina. This is also the first time that Chinese textile enterprises set up factories in the United States. In order to avoid the high cost of foreign trade in China's textile industry, the director of China's state-owned enterprises, such as the cotton industry, set up a high cost of foreign investment in China's textile industry.

The reporter learned that Kohl group made a decision after making a comparison between Vietnam, India and other Southeast Asian countries and the United States. The person in charge of the company said that although the labor cost of the United States is high, it is not as good as the Southeast Asian countries, but it can make up for the cotton raw materials and cotton textile power consumption.

Xiong Xiaokun pointed out that China's textile enterprises have great potential to build factories in European and American countries. On the one hand, China's textile and clothing industry is highly dependent on exports, and exports are mainly concentrated in Europe and the United States. To build factories in Europe and the United States can reduce transportation costs for garment enterprises with foreign trade export business; on the other hand, in addition to labor costs higher than southeast Asian countries, European and American countries are significantly better than Southeast Asian countries in terms of technology, management and talent. The establishment of textile enterprises in Europe and the United States will have a positive impact on the transformation and upgrading of enterprises and the development and improvement of their own resources, technology, market and brand competitiveness.