Taiwan'S Textile Industry: Running Away Is Not Just About Tariffs, It'S About Survival.

After joining TPP, is Taiwan ready? The new towns and woods in Xinbei city extend all the way to Taoyuan, only 20 kilometers away. This is the most important thing in northern Taiwan.

Industrial corridor, in this unplanned "unwritten" industrial zone, small textile factories, spinning, spinning, dyeing and finishing, clothing "through-train" once completed, is a number of well-known international brands.

The production area of the new product.

However, after the completion of negotiations between the p Pacific Partnership Agreement (TPP), the industrial cluster known as the "textile Silicon Valley" will face strong challenges from industrial migration and brain drain. "The first thing to bear is that the spinning factory and spinning factory, which are mainly exported to the United States, will be removed as a whole, which will affect the livelihood of the more than 40 thousand employees of the textile industry in Taiwan."

Huang Weiji, Secretary General of Textile Development Association.

The principle of "starting from yarn" will not be added until it is heavily taxed.

According to the principle of origin certification for the textile industry requiring "yarnforward (starting from yarn)", it is clear that the most important raw materials for garments must come from the TPP member countries before they can enjoy preferential duties. Vietnam, a member of the TPP, naturally becomes the first choice for Taiwan textile producers to compete for investment. Huang Weiji said, "as long as one house goes, other families will have to go because the difference is 30%."

In the past 50 years, the most important export market of Taiwan's textile industry is the United States. Huang Weiji pointed out that the current duty rate of garments exported to the United States is about 28% to 32%. "But after TPP comes into effect, Vietnam's textile exports to the United States will gradually reduce tariffs to zero."

Considering the competitiveness, the industry has to go to Vietnam to set up factories. "Far East Group invested tens of billions of yuan in New Taiwan dollars, and Formosa Plastics has a fairly complete industrial chain in Vietnam."

Not only that, but Ru Hong, the chief executive of the textile stock company, have plans to expand their factories in Vietnam, and Taiwan textile industry has invested in Vietnam.

However, according to the information of the Textile Development Association, there are still Hongye, Li Li, Li Peng, Lian FA, Ji Sheng, Yi Jin, and so on in the domestic listing cabinet yarn factories.

Once the TPP comes into force, the future Taiwan cloth export to Vietnam is probably not very smooth, or more or less will face tariff barriers.

To run away is not just to consider tariffs, but to survive.

Taiwan's largest knitted fabric one-stop integration plant, the famous sports brand Edida (Adidas), the largest supplier in Asia, Xu Rong group, also set up garment factories and cloth factories in Vietnam, focusing not only on Vietnam's over 8 million bonus, but after the entry into force of TPP, including the high-end consumer market, including the United States and Japan.

"We are not like the electronics industry, and the life of the textile industry can continue to this day. Even in a recession, the trend is to grow outwards."

Wu Renxiao, deputy general manager of the international marketing department of Xu Rong Group, spoke of the pride of the textile industry when they talked about "self reliance and self-improvement".

But Vietnam had a row over the Chinese movement the year before yesterday. Many Taiwanese businessmen suffered heavy losses in Vietnam, and some even rushed back to Taiwan. Now, Taiwanese businessmen are stepping up to Vietnam. Wu Renxiao explains that all this is for "survival". "If we have the chance to join (TPP), we do not need a swarm of bees to run factories in Vietnam."

"It is time for me not to give" to Luo Chunmei, Secretary General of the Taiwan garment industry association, that Taiwan is difficult to join the TPP, on the one hand is the international political reality. Under the pressure of China, even if TPP is dominated by the United States and Japan, it is still difficult to ensure that Taiwan can get all Member States to join. On the other hand, it is against domestic noise, and the trade in clothing is still in the Legislative Yuan. There is no consensus on trade negotiations. There are still many voices against trade liberalization in the country, and if the United States is willing to support Taiwan, it may be the price of American pig imports.

This will also cause a strong domestic rebound.

"Those who can't go out can only seek help from others," Luo Chunmei admitted. The textile and garment industry is a labor-intensive industry. Most of the industry has already set up factories in China and Southeast Asian countries with many demographic dividend and low wage levels. The industry in Taiwan is basically bitching their teeth. If Taiwan does not join TPP, it will face tariff barriers in the international market and will inevitably be marginalized.

Entering TPP, Taiwan's textile industry will become more powerful.

Wu Renxiao said that although the textile industry actively went to Vietnam's layout, it still had deep expectations for Taiwan's accession to the TPP. "We also want to keep key technologies in Taiwan."

He pointed out that the advantages of Taiwan textile industry lie in the key technologies such as fabric R & D, design and production management. "Taiwan textile technology has been leading the mainland industry for 5 years at least, and even leads the world".

However, when companies go abroad and fight overseas, they will become operational risks and extra costs in addition to considering language and cultural issues, whether the local government's regulations are pparent and whether they are friendly to foreign investors.

Wu Renxiao said that Taiwan has a relatively stable political and economic environment, "the core technology of high tech threshold, of course, to stay in Taiwan".

Therefore, if Taiwan can join the TPP, it will still be quite beneficial to the textile industry.

Luo Chunmei believes that Taiwan's accession to the TPP will have more choices for the textile industry. Those who focus on the global market can leave their headquarters and R & D centers in Taiwan, but the operation of production and sale will take the global layout. Those who defy the Taiwan market and have no intention of leaving will avoid the loss of competitiveness and avoid the uncertain risks of going overseas. "After all, the development of Taiwan is relatively more practical in Taiwan."

Luo Chunmei also suggested that in addition to striving to join the second round of TPP negotiations, the government should also actively establish the "MIT" national brand image and guide the industry to carry out the pformation. "If so, Taiwan's textile and garment industry will have a bright future."

The textile industry is actively playing the "World Cup" and strengthening the overseas layout has become a trend. But whether Taiwan can join the TPP is crucial to the core competitiveness of the textile industry. It is also a key battle for Taiwan's economic development.

Whether the textile industry will "base itself on Taiwan and look at the world", or "industrial relocation and uprooting", will test the wisdom and determination of the government.