New Challenges Of Textile Industry In China? Vietnam'S Accession To CPTPP Involves More Than 500 Million Of The Population.

CPTPP enters into Vietnam or becomes the biggest winner

Comprehensive and progressive p Pacific Partnership Agreement

(CPTPP) came into force in Japan, Canada, Australia, New Zealand, Mexico and Singapore in December 30, 2018 and became effective in Vietnam in January 14, 2019.

In addition, Brunei, Chile, Malaysia and Peru will implement the agreement 60 days after the completion of the agreement approval process.

It is reported that the CPTPP agreement occupies the country.

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After the formal entry into force of CPTPP, Japanese officials told the media that in 2019, Thailand and Britain could join the negotiation of this Agreement and become the new signatory of the agreement.

CPTPP

The comprehensive and progressive p Pacific Partnership Agreement (CPTPP, Comprehensive Progressive Trans-Pacific Partnership) is the new name after the US withdrawal from the p Pacific Partnership Agreement.

In November 11, 2017, a joint statement was issued jointly by the 11 Asia Pacific countries that initiated the TPP negotiations, announcing that "a fundamental consensus has been reached on the new agreement" and decided to rename it as the "comprehensive progress agreement on p Pacific Partnership" (CPTPP).

In March 8, 2018, the 11 nations participating in the negotiations on the comprehensive and progressive p Pacific Partnership Agreement (CPTPP) held the signing ceremony of the agreement in Santiago, Chile.

In December 30, 2018, the comprehensive and progressive p Pacific partnership agreement came into effect.

The impact of CPTPP on Vietnam's economy depends largely on Vietnam's ability to seize opportunities and overcome challenges.

CPTPP phased out 98% of tariffs on agricultural and industrial products, relaxed investment regulations and strengthened protection of intellectual property rights.

Joining the CPTPP brings Vietnam an unprecedented market, "Vietnam makes" or becomes the biggest winner.

Vietnam's accession to the CPTPP is a concrete move by the Central Committee and the state to implement the policy of integrating into the international integration. It confirms the role and geopolitical status of Vietnam in Southeast Asia, the Asia Pacific region and the whole world.

Becoming a member of CPTPP is of great significance for Vietnam to make use of external resources and integrate domestic advantages and effectively serve domestic construction, national defense and development.

According to the national social economic information and forecasting center of the Ministry of investment and planning of Vietnam, by 2035, CPTPP will increase Vietnam's GDP by 1 billion 700 million US dollars and increase exports by US $about 4000000000, an increase of 1.32% and 4.04% respectively.

The agreement will open up new opportunities for Vietnam's trade and create more momentum to promote domestic economic restructuring and improve the business environment.

China's textile and garment industry deserves vigilance

The Vietnamese people in this land are not only industrious but also energetic. At present, about 30 million of the young people are in China, and the trend of population aging in China is obvious, while the Vietnamese population is relatively young.

For a long time, Vietnam will maintain this advantage and enhance the competitiveness of its workforce.

In the field of textile, now "Made in Vietnam" is quietly occupying the market of "Made in China".

In 2009, Nike's Vietnam factory completed the overall surpass of China's capacity.

In 2012, the last Chinese mainland factory in Suzhou was closed in Suzhou.

In April 2018, UNIQLO announced that China's capacity would shift to Southeast Asia, and Vietnam would take up 40% of its total output.

It is not just foreign brands that are attracted by cheap labor.

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Chinese textile and garment enterprises also accelerated the pace of pferring to Vietnam.

Bosideng, a Chinese manufacturer and seller of down garments, will also expand its production in Southeast Asia.

Bosideng began to pilot production in Vietnam textile factory related to Itochu's business, and plans to further expand production according to production trends.

The reason for the pfer is not complicated, because the labor cost to Vietnam can be reduced by nearly 5.

Vietnam's production workers earn an average of 216 dollars per month.

Moreover, according to world bank data, Vietnam is one of the largest labor force in Southeast Asia, with 57 million 500 thousand workers, while Malaysia and Philippines are 15 million 400 thousand and 44 million 600 thousand respectively.

Under the background of Sino US trade friction, China's foreign trade orders are struggling, but Vietnam is striding forward. This can not but cause the industry to be vigilant.

Vietnam jumped to the third largest textile and garment exporter in the world

In December 26, 2018, "Viet Nam Electronics" reported that Li Jinchang, general manager of Vietnam textile and Garment Group, told reporters at the press conference that Vietnam's textile and apparel exports amounted to 3 billion 600 million US dollars in 2018, up 16% over the same period last year.

The figures show that Vietnam's textile and garment industry has not only increased in quantity but also in quality.

It is worth noting that Vietnam has become the world's third largest exporter of textiles and clothing, second only to China and India.

Li said that the breakthrough factor to promote textile and clothing exports in 2018 is the trend of the world textile and garment production base pferring from China to Vietnam.

At the same time, foreign big enterprises also saw Vietnam's better investment opportunities than India and Bangladesh.

Based on the above results, Li said that the results achieved in 2018 were brought about by the implementation of various strategies over the years, including investment in the construction of international production facilities, the adoption of green technologies and the concern of labourers, thus gaining the priority of customers.

25 billion built "all-around fast reverse factory"

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One is to make use of the advantages of China's 1 billion 400 million population to upgrade the industry in the process of keeping pace with the upgrading of consumption.

The other is the "going global" market.

Sun Weiting, known for his prudent and prudent investment, said: Vietnam is the "one Luqiao first fort" that Chinese textile and garment enterprises have to layout.

according to

According to the announcement, the company intends to invest in the new yarn project through its subsidiary company Huafu Vietnam.

The project is the first phase of the new 1 million item yarn project in the company's planning, with a capacity of 500 thousand yuan, with a total investment of 2 billion 500 million yuan. The source of investment is the company's self financing.

Huafu has been ploughing for four years in Vietnam.

In 2013, Huafu set up a subsidiary in Longan province and became the largest foreign-invested enterprise in Longan. The company also had the first overseas production base.

Up to now, Huafu Vietnam has the leading dyeing and spinning equipment, and has built 280 thousand spindles spinning capacity, dyeing capacity of 20 thousand tons, R & D center of 2000 square meters, supporting production and living facilities of 110 thousand square meters.

The new journey opens instantly.

As the world's largest manufacturer and supplier of new yarns, Sun Weiting said that Huafu positioned Vietnam as a "Southeast Asian all-around fast response" base, which is close to international customers and produces standardized products.

Compared with domestic, Vietnam's local order delivery time is shortened by 12 days. Bangladesh, Hongkong and Southern China orders are expected to be shortened by 2-4 days. Competitive advantage can be achieved through quality differentiation, product differentiation and cost differentiation.

At present, the five production bases of Huafu Zhejiang, Changjiang, Huang Huai, Xinjiang and Vietnam have different focuses, and the trend of production capacity pferring to Xinjiang and Vietnam is obvious.

In the future, Zhejiang will be positioned as China's "Italy" and become the "fashion design city". Huafu's "network chain headquarters" established in Shangyu, Zhejiang is a demonstration base for fashion industry. By the end of 2018, the 1 million color spinning capacity of Xinjiang Akesu in China's high-quality long staple cotton production base will also be put into operation one after another, boosting domestic consumption upgrading and the export market of Central Asia and Europe.

As for the source of funds recently invested in self financing of 2 billion 500 million yuan, Sun Weiting said that he could consider raising funds from Vietnam's own capital and overseas financing, and excluding domestic equity financing.

In view of the financing liabilities of private enterprises which are generally concerned by the market, at present, the shares of listed companies held by Huafu holding company are not pledged, and the debt ratio of listed companies and groups is maintained at 50%-60%'s manufacturing level.

Sun Weiting said earlier that the company's capacity expansion "no ceiling."

Data show that as of the first half of 2018, Huafu fashion production capacity reached 1 million 880 thousand ingots, an increase of 12.57% over the same period in 2017, and the overall capacity is expected to continue to increase to 2 million.

In the past forty years of reform and opening up, the industrial zone mode has become the soil that breeds the rapid development of Chinese enterprises. Nowadays, overseas industrial parks have become an important part of the construction of "one belt and one road". Many Southeast Asian countries have begun to use industrial park mode to try to drive their own industrial development.