Global Textile Enterprise Layout Reconstruction, Vietnam Has Become The "Heaven" In The Heart Of Textile Enterprises?

China is the largest in the world.

Production and consumption countries are also important cotton trading countries, but for the past three years, cotton has become a major trading country.

The Chinese market has developed anorexia.

According to China Customs data, in 2013, China's cotton imports amounted to about 4 million 160 thousand tons. In 2014, this figure decreased by nearly half, to 2 million 750 thousand tons. Only in the ten months that just passed in 2015, the figure dropped to 1 million 200 thousand tons, and since 2013, cotton imports have gone through two consecutive cuts.

It is even more amazing than the continuous "cut". In the past three months, the monthly import volume of cotton has fallen to "single digit" in China.

Data show that in August 2015, China imported 70 thousand tons of cotton, 50 thousand tons of cotton imported in September 2015, and 42 thousand tons of imports in October 2015, the lowest since 2005.

However, aside from the digital puzzle, hidden behind China's cotton import experience, "two consecutive cuts" may be global.

Reconstruction of enterprise layout.

There are many reasons for the sharp decline in cotton imports in China. The impact of strict control of cotton quotas in 2015 was also severe. In March this year, the Chinese government formally adjusted the policy of dumping and storing cotton, and reduced the price of bidding.

But the core problem is still at the demand side.

"The more important reason is that the demand of textile enterprises is decreasing."

Textile industry insiders said.

The reporter understands, at present, most textile enterprises are faced with the difficulties of reducing orders and decreasing profits. Even after many enterprises have deducted costs, there is no profit at all.

In recent two years, a large number of textile enterprises have been shut down and shut down, even though the start-up enterprises have not been able to produce normally.

Ye Jianchun, vice president of the China Cotton Textile Industry Association, once said that in 2014, the actual volume of domestic textile enterprises started at 70 million -8000 million spindles, and in 2015, the actual starting capacity was only 50 million -6000 million spindles.

The sluggish demand for Chinese textile enterprises confirms that the demand for Chinese textiles has declined in overseas markets.

According to Chinese customs statistics, textile and clothing exports continued to decline in October, and the decline in dollar terms expanded to two digits again.

"Many small factories have been shut down."

Shandong Jinlong Textile Co., Ltd., the person in charge told reporters that in many parts of Shandong, small factories are facing the situation where no orders can be met, and the enterprises that they are in have opened several times.

Recently, a research report on China's latest textile industry was officially released in Guangzhou.

The report points out that China's textile enterprises are generally facing diversified challenges such as rising costs, increasing market competition and shortage of funds. Over 30% of the textile enterprises in China are facing the problem of electric shock, and over 50% of enterprises think there is a surplus capacity.

"This year's export decline may be bigger than last year."

Mr. Zhang, director of a textile enterprise in Zhejiang, said that the operating rate of textile enterprises in recent years was generally not high, and that many textile enterprises were overwhelmed by the lack of external demand and rising costs.

And some big companies have moved to South East Asia to realize that they have to make a choice, or change, or move factories to artificially low areas, and Vietnam that has just joined TPP is becoming their ideal destination.

Vietnam breakthrough

With the basic agreement reached in the p Pacific Partnership Agreement (TPP), Vietnam as a big exporter of textile, clothing and footwear manufacturing industry, Vietnam can enjoy zero tariffs after the entry into force of TPP, making Vietnam the "paradise" in the heart of textile enterprises.

In order to successfully reach this "paradise", spinning enterprises have to condescend to the principle of "one yarn" in the TPP agreement, that is to say, textiles and clothing can only be imported from the United States and other TPP countries, and the enterprises are relocated to Vietnam.

Especially for Chinese textile enterprises that have not yet joined the TPP, "leaving" has become a necessary choice for survival.

Many enterprises began to lay out the Vietnamese market a few years ago.

In November 13th, Lu Tai textile Limited by Share Ltd announced that it would invest $30 million to set up Lu Tai (Vietnam) Garments Co., Ltd., to produce yarn and yarn dyed fabrics.

In October 15th, jn group announced two announcements to increase investment in Vietnam.

Huafu color spinning, Bailong Oriental and other textile and garment enterprises are also increasing investment in Vietnam.

The first half of the year reported that the main business revenue of the company was 1 billion 355 million yuan, an increase of 0.02% compared with the same period last year, while the main business revenue of overseas main business was 1 billion 25 million yuan, an increase of 14.74% compared with the same period last year.

Baron East is one of the earliest colored spinning manufacturers in Vietnam. The company has invested three phases in Vietnam's production capacity, accounting for nearly half of the total capacity of the company.

Some multinational companies have begun to adjust their share and place more orders in Southeast Asia.

At present, Vietnam has replaced China as the world's largest sports shoes production base of Nike brand.

"Vietnam is the first choice for China's textile industry to go out."

Hong Tianzhu, chairman of the board of directors of Tianhong Group, believes that it is also an exercise for Chinese enterprises. Among the twelve signatories of TPP, only Vietnam's textile and garment industry is most competitive. He recommends that Chinese enterprises with the ability to go to Vietnam to set up a factory. "But not necessarily all enterprises are suitable for going out. If they can't go out in the country, they will not be good."

It is reported that at present, Tianhong has invested 1 million 250 thousand yuan in Vietnam, with a scale of US $800 million, which is the top priority for mainland Chinese enterprises to invest in Vietnam.

"Vietnam is expected to become another textile production center in Asia."

Chen Zhongzai, director of the Ministry of foreign investment and economic cooperation of the Ministry of Commerce, recently held the 2015 China textile industry "going out" exchange conference.

According to a series of data given by Chen Zhong, there are nearly 3 Chinese enterprises investing abroad. Among them, the textile and garment industry has built 802 enterprises abroad.

Among them, a number of powerful international enterprises have been formed.

According to the latest data released by Vietnam Textile Association, the import volume of cotton in Vietnam increased by 44.2% in the 1-9 months of this year. In September alone, Vietnam imported 100 thousand tons of cotton, and export enterprises took the lead in the fourth quarter and the first quarter of next year. It is estimated that cotton imports will continue to grow at a rate of over 50%.