Where Does China'S Textile Industry Go From: Southeast Asia Or "World Factory"

The choice of domestic textile capital in Southeast Asia is believed by many textile friends.

Apart from some uncontrollable factors, such as the rising cost of raw materials under the influence of international environment, the choice of Southeast Asia is mainly based on the opportunities for Southeast Asian development, the advantages of labor cost and the maximization of benefits under risk aversion.

1. dual pressures of pformation and upgrading and environmental protection storm

At present, the share of the domestic textile market is approaching full, the phenomenon of homogenization of products is serious, and competition is fierce. Even the top 500 textile enterprises in China are still unable to avoid bankruptcy and bankruptcy. Last year, the news of the closure of two strong textile enterprises in Shandong came out last year. Among them, the sea group, which had more than 30 years of Qilu earth, could not help but sigh.

And in the domestic textile demand weak, overcapacity, the demographic dividend disappeared, under the pressure of urgent pformation and upgrading, and ushered in the most stringent environmental protection storm in history, the implementation of a round of environmental remediation actions has been increasing, textile enterprises have encountered unprecedented challenges.

Overcapacity is urgent to pform and upgrade, market share is saturated, industry competition is fierce, and environmental protection policies are under high pressure normalization, industry situation is grim, market acceleration shuffle, financing difficulties, recruitment difficulties, heavy enterprise burden, low profit level and other issues highlight that some domestic textile enterprises are not difficult to understand.

Almost every year, textile and garment enterprises are faced with the problem of labor difficulties. Labor costs continue to rise, and even the embarrassment of 8000 yuan in price is unsolved. 2019 years later, dyeing and finishing materials have ushered in the first rise of the year after construction.

Scattered black ECT300% has skyrocketed 73% in just two years.

As of February 12, 2019, the mainstream factory price of dispersed black ECT300% has risen to 45 yuan / kg.

2. Southeast Asian Development dividends and the way around

In a period of considerable turbulence, peace and development have become a common understanding among Southeast Asian countries, vigorously promoting economic development, attracting foreign investment, opening up continuously and improving the business environment.

In recent years, Vietnam has been carrying out reform and pformation and devotes itself to developing the manufacturing industry. This country, which is known to replace China as the second world factory, is developing vigorously. It has been developing by leaps and bounds for nearly 20 consecutive years at a rate of around 7%.

At present, the world's first-class enterprises are entering Vietnam. Intel, Intel, Foxconn, Foxconn, LG and Samsung (Samsung) have invested in factories in Vietnam. Almost all the Fortune 500 companies are doing business in Vietnam. Vietnam has announced plans to cooperate with Amazon's global open shop.

It can be predicted that for a long time, Vietnam and even Southeast Asian countries will become an investment sanctuary for the global manufacturing industry.

At present, the strategy of China's belt and road is vigorously advancing. With the help of national strategic resources, enterprises can go abroad, expand overseas, promote sustainable development of enterprises, open up new world markets, and win wider development space, providing new platforms and new opportunities for textile enterprises.

Southeast Asian countries are at the forefront of China's strategic frontiers and are most enthusiastic about the strategic response to the whole country. Statistics show that between 2013 and 2017, the volume of trade in goods between China's enterprises and the countries along the belt and road has totaled more than 5 trillion US dollars, and foreign direct investment has exceeded US $70 billion, while Southeast Asian countries have attracted more than half of China's direct investment in "one belt and one road".

3. cost advantages and business environment

Compared with the rising labor costs in the country, the cost of labor in Southeast Asian countries is even lower. Bangladesh, the world's second largest garment base, has the lowest wage in the world.

Even for clothing workers over ten years of age, the minimum wage is 8000 Taka, which is about 90 euros (686 yuan RMB).

In China's textile and garment enterprises in Bangladesh, the average monthly wage of an ordinary female worker is about 500 yuan, while the high salary is 800 yuan, and this one thousand less paid job is considered highly paid by local women.

Vietnam's production workers earn an average of 216 dollars a month, less than 1500 yuan, even half the monthly salary of Chinese workers.

Apart from the labor cost advantage, the data show that the production cost of Southeast Asia is low. In Vietnam, for example, the water charge in China is 3.5 yuan / ton, while in Vietnam it is 2.4 yuan / ton, and the cost is reduced by 31%.

The electricity charge in China is 0.65 yuan / degree, while in Vietnam it is 0.39 yuan / degree, and the cost is reduced by 40%.

In the original inheritance of China's extensive development mode, thanks to the advantages of labor cost in Southeast Asia and the maturity of China's textile industry chain, the pfer of domestic textile industry to Southeast Asia is more competitive than domestic textile enterprises.

And the business environment of Southeast Asian countries is also improving. The Vietnamese government has been actively opening up to the outside world, attracting foreign investment vigorously, and giving preferential tax incentives.

The Vietnamese government invested more than US $300 million in the enterprise from the profit year or the fourth year, 4 years from the income tax. After 9 years, the income tax rate is =5%, then 2 years 10%.

Even for normal taxation, Vietnam's tax rate is not high, which is 10%, compared with 17% of the domestic value-added tax. Vietnam's tax system has obvious advantages.

4. risk aversion and interest pursuit

At present, the shadow of Sino US trade friction persists. Even if the situation of escalation was stopped in December last year, the Trump administration of the United States is entirely possible to overturn the previous agreement, and does not rule out the possibility that the United States will still levy new tariffs.

Under such circumstances, some textile businesses in China rely heavily on the US enterprises. In order to avoid certain risks, they become an inevitable choice for Southeast Asian countries with a narrow strip of water.

Factory "

In terms of tariffs, Southeast Asian countries almost enjoy the treatment of tariffs, GSP, and even duty-free treatment in Europe, America, Japan and South Korea, including China. Especially after the recent CPTPP entry into force, Vietnam has brought unprecedented market and preferential treatment to Vietnam.

However, it is important to note that countries such as Burma and Kampuchea have recently been able to cancel tariff preferences by Europe and the United States.

China is the largest cotton producing and consuming country in the world, and also the largest importer of cotton. The import of cotton by domestic textile enterprises needs quotas, and no quota can be purchased at high price for domestic cotton, which is one thousand or two thousand yuan or five thousand or six thousand higher than the cost of cotton in the international market for a long time.

As far back as 2014, Vietnam's Tianhong Group Vietnam used most of its cotton and cotton to protect the quality of its products.

5. the pfer of textile industry still needs to be treated with caution.

The domestic textile industry is pushing Southeast Asia, while reducing production costs, reducing barriers to trade barriers and maximizing the pursuit of interests, it is still bound to encounter new challenges.

The quality of local workers in Southeast Asian countries is generally not high and the production efficiency is low. Many enterprises are very familiar with the factory owners in Southeast Asia. Some owners say that the efficiency of domestic plant production is about 2.5 times that of overseas factories, which almost completely disappears the labor cost advantage of individual workers.

At the same time, wages of Southeast Asian workers have risen rapidly. Over the past 4 years, wages for low skilled workers have risen from 11% to 91% in factories in the capital region of Southeast Asia.

In addition, strikes in Southeast Asia often happen, and infrastructural facilities also hamper the development of enterprises.