How Can The Processing Cost Of Xinjiang Garment Industry Be Higher Than That Of Southeast Asia?

According to China

Products import and Export Chamber of commerce data show that 1-6 months of this year, Xinjiang textiles

Total exports amounted to US $1 billion 679 million, or about 10 billion 580 million yuan, down 39.22% from the same period last year.

Among them, the border trade volume was about 9 billion 80 million yuan, down 35.07% from the same period last year, accounting for 85.89% of the total export volume.

There are two reasons for the sharp decline. One is the currency depreciation of rouble and other neighboring countries. Two, last year, Kazakhstan cracked down on illegal smuggling activities and rectified the wholesale market of clothing. At the same time, the normal textile and clothing trade between China and Kazakhstan was also seriously affected.

All along, Xinjiang textiles and clothing

The proportion of the total in the whole country is very small.

"At this stage, our clothing production capacity is relatively low, a small number of real estate clothing sold to neighboring provinces and cities, and exported to Central Asia, Russia and other countries.

Over the past two years, a number of garment enterprises have been put into operation. However, due to limited technology, lack of orders and poor market development, some enterprises are unable to reach production, and they can only rely on local school uniform orders or employment training expenses to maintain production or partly start.

Some time ago, a survey was conducted to find that last year many new garment enterprises started to operate at a rate of about 70%, mainly due to market constraints.

In view of this, it is difficult to release production capacity by relying solely on the local market, uniform orders and tooling of the enterprises in the autonomous region. We must vigorously develop the surrounding provinces and cities and Central Asian and Russian markets, and actively strive to export to the EU and other markets.

In the short term, Xinjiang's main export market is still in Central Asia.

At present, the market share of locally produced products in Xinjiang is only about 10%.

The surrounding market capacity is still there, the goal is to increase the market share of Xinjiang real estate clothing to 30% or even 50% in recent years.

By 2023, we plan to produce 800 million garments, which will be about 8 times the current annual output, and export will account for 2/3 of total production.

In addition, in the long run, the Central Asian market is limited in terms of population and consumption. Therefore, the long-term goal of Xinjiang's textile and garment export industry is to continue westward and expand western Asia and Europe.

This is an important reason for vigorously introducing import and export processing enterprises.

Since this year, many export processing enterprises originally intended to move to Southeast Asia have diverted their industries to Xinjiang.

The "one belt and one way" is the national policy, the strategic vision of the core area and the five major centers of the Silk Road Economic Belt, and has become a solid foundation for the interconnection between Xinjiang and Central Asia and European countries.

Under such a macro policy, Xinjiang is very attractive.

Although the processing cost of Xinjiang garment industry is 10%-20% higher than that of Southeast Asian countries and regions, the processing cost of Xinjiang is still relatively low and about 10% lower than that of the mainland.

Since the cost of production is higher than that of Southeast Asia, how can we attract the mainland enterprises to pfer the industry to this?

First of all, although processing costs are higher than those in Southeast Asia, Xinjiang and the mainland provinces are more convenient in terms of technology, raw materials, logistics and other resources.

Secondly, at the present stage, the main products of Xinjiang's textile and garment industry are cotton yarn, viscose yarn and other products, that is to say, our upstream supporting industry is very developed, which is very important for the development of downstream enterprises.

Finally, Xinjiang is increasing training efforts to improve the quality and efficiency of employment, and it is gratifying that progress is faster than expected.

Of course, in addition, there is a hard indicator in assessing the export strength of Xinjiang and the comparative advantage with ASEAN, that is, freight capacity.

The opening of international freight trains will not only send Xinjiang products to more countries and regions, but also attract more textile and garment enterprises from Central Asia, Russia and Europe to invest and set up factories in Xinjiang. This will help build Xinjiang into a bridgehead for the export of textiles and clothing to the West and export processing bases.

The completion of the processing base will further promote the operation of international freight trains, which complement each other.