More And More Textile Enterprises In China Choose To "Go Out".

"Implementing overseas investment strategy is to us.

Enterprises are not only an attempt to break the ice, but rather an important opportunity for the pformation and upgrading of enterprises.

Recently, our district held a textile enterprise going out conference. At the meeting, Shenzhou knitting, Galaxy knitting, Mondi knitting, Hua He

The representatives of 13 enterprises, such as Zhi Da textile, made speeches and heated discussions on the theme.

As one of the important pillar industries in our region, the import and export volume of our textile and garment industry reached 2 billion 720 million US dollars in 2015, accounting for 15.3% of the total import and export volume of the region.

However, as in other parts of the country, our textile and garment enterprises are currently faced with the difficulties of raising domestic labor costs, increasing production factor prices and weakening global demand.

In October 2015, the 11 countries of the Pacific Rim, led by the United States, reached the basic agreement of the Pan Pacific Strategic Economic Partnership Agreement (TPP).

To cope with the above changes, more and more textile enterprises in China choose to "go abroad" to invest and build factories overseas, and Vietnam is becoming an important destination for enterprises to invest overseas.

As a leading textile and apparel enterprise in the region, Shen Zhou knitting started its layout in the global production chain in 2005. At present, the company has many garment factories in Kampuchea and Vietnam.

"Unexpectedly, the passivity of the year turned into the present initiative, and the forced mechanism turned into an opportunity."

Wang Cunbo, executive director of Shenzhou knitting, made an experience exchange with everyone. He also summed up the experience gained by Shen Zhou's overseas development. "First, we should pay attention to the training and pmission of management talents, grasp the training before and after the event, and also scientifically layout the production capacity and make reasonable use of the advantages."

However, "going out" is not easy. If blindly implemented, the risk of overseas investment may bring a fatal blow to enterprises.

As for how to avoid the risk of "going out", the business representatives who participate in the exchange think that enterprises should rationally judge and choose the direction and pace of the international layout according to their actual situation and strategic objectives.

In particular, efforts should be made to invest overseas in mergers and acquisitions. We should consider the factors such as labor supply and cost, labor productivity potential, industrial chain matching, infrastructure, legal and political risks, local operation and other factors, calculate the comprehensive cost, and give full play to the real advantages of investment destinations.

In order to help the textile enterprises in the region to step out of the "going out" step, the relevant departments of the District Commerce Bureau will also encourage enterprises to go to the field to conduct detailed research and understand the local political, economic and cultural environment.

At the same time, increase links with local industrial parks, fully grasp the park's industrial layout, policy support, infrastructure planning, etc., lay the foundation for the next enterprise to enter.

"We will also increase insurance and financial support, and jointly trust CITIC and various commercial banks to launch appropriate business varieties suitable for enterprises, and give a certain rate subsidy on policy, so as to provide protection for enterprises to invest in Vietnam."

District Business Bureau official said.