China'S Textile And Garment Orders Are Not Showing Signs Of Recovery.

The Canton Fair has ended. The Canton Fair has not been very successful, and orders have been reduced. The trend of textile and garment industry pferring to Southeast Asia and other regions is increasingly obvious.

Wang Qian, a senior textile analyst, predicts that China's textile and garment export growth is slowing down, which is expected to grow by about 5% this year.

"Buyers are too expensive, and many orders can not be met. Our turnover in this Canton Fair has decreased. The pfer of orders to Southeast Asia is obvious. We haven't set up factories overseas for a while. The impact is still greater. The average monthly salary of workers in Southeast Asia is 200~300 dollars, while our workers earn about 500~600 dollars. Customers are speeding up the pfer of orders to Southeast Asia."

Lin Hua, a person in charge of a textile and garment export enterprise in Hangzhou, was interviewed by our newspaper. He said he had not left the field ahead of the end of the Canton Fair, and rushed to Hongkong to attend another meeting.

Zhou Xiaonan, deputy general manager of Huamei line Co., Ltd., when interviewed by our reporter, said: "the labor cost and raw material prices are relatively stable recently. The price of our products such as polyester sewing thread, rayon embroidery thread and so on has not been significantly increased. The trend of the pfer of such textile products to Southeast Asia is not as obvious as that of the garment enterprises. Instead, the orders for clothing and other orders have accelerated to Southeast Asia. Southeast Asian customers have increased their orders to our purchase line products, but the market is still in the slump. In recent days, there are not many overseas buyers who come to inquire, especially the customers in Russia and other regions. The number of customers in Southeast Asia is also good."

Factories marked overseas have become one of the ways to attract business in textile and garment enterprises.

On the booth of Zhejiang Fu Xi Textile Co., the billboard lists the details of domestic factories, Kampuchea factories and Burma factories.

Suzhou Hengrun import and Export Co., Ltd. also told customers in the form of pictures and text that they own processing plants in Kampuchea. The company's responsible person said that customers would prefer to place their orders in factories in Kampuchea.

Statistics show that in the first quarter of this year, China's clothing exports showed sharp fluctuations, down 12.5% in January, 99.4% in February, 35.4% in March, and 35 billion 790 million dollars in clothing exports in the whole quarter, a slight increase of 2% over the same period last year.

At the same time, Vietnam's textile and clothing exports grew rapidly.

In February 2015, Vietnam's textile and clothing exports amounted to US $1 billion 500 million, an increase of 43.5% over the same period, a year-on-year increase in twenty-fourth months. The total export value of 1~2 this year was 3 billion 400 million US dollars, up 15.8% from the same period last year, the highest value in the same period of history.

Wang Qian analysis pointed out that

To some extent, it has benefited from the negotiations on the free trade agreement of the country, such as TPP (involving the US and Japanese markets), Vietnam and the European Union, and customs union between Vietnam and Belarus, Kazakhstan and Russia, further enhancing the competitiveness of Vietnamese textile and clothing.

As the middle and low-grade textiles and clothing accelerate the pfer of Southeast Asia, and domestic labor costs continue to rise, the Pearl River Delta and other areas have been in trouble or even shut down factories.

However, the domestic textile and garment industry is not a purely competitive relationship with the Southeast Asian textile and garment industry.

Zhang Xian, Secretary General of the China Textiles Import and Export Chamber of Commerce, said that ASEAN has become one of the fastest growing regions of China's textile and clothing exports since the establishment of the China ASEAN Free Trade Area.

In 2013, ASEAN first surpassed Japan to become China's third largest textile and garment export market.

In 2014, China exported to ASEAN $36 billion 100 million of textile and clothing, an increase of 5.5%, and China imported 3 billion 900 million dollars from ASEAN to grow 20%.

At present, ASEAN is China's largest.

Market and the first largest fabric export market, Vietnam is China's largest fabric exporter destination by a single country.

Zhang Xian said that from the perspective of labor cost, ASEAN countries have obvious comparative advantages compared with China.

In order to make full use of the cost advantages, tariff preferences and cotton price advantages of Southeast Asian countries to adapt to the changes in the purchasing strategy of importers, many Chinese enterprises have implemented successful capacity pfer and overseas layout, pforming the competitive relationship between China and ASEAN countries into a win-win relationship.

Chinese textile enterprises are speeding up their overseas layout. Tianhong and Yida group set up cotton spinning base and clothing processing base in Vietnam. Red bean and Shenzhou group set up export processing zones and clothing processing bases in Kampuchea.

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