New Trend Of China'S Textile And Garment Industry: To Allocate Resources To Vietnam, Bangladesh And Other Countries

On March 1st, Cao Jiachang, President of the China Textiles Import and Export Chamber of Commerce, said at the twenty-ninth China East China Import and export fair that the Chinese textile and garment industry is accelerating the strategic layout of globalization. Its main mode is to invest in factories such as Vietnam and Bangladesh.

Cao Jiachang tells an interesting phenomenon: at present, China's textile and garment exports account for a slight decline in international market share, but there is no need to worry.

This can be seen from a set of data: in the first 11 months of last year, China's textile and apparel products accounted for 36% of the US import market, 0.4 percentage points lower than the same period in 2017, while Vietnam's share was 10.6%, an increase of 0.2 percentage points compared to the same period last year. Last year, China accounted for 33% of the EU's import market share, a 1 percentage point decrease compared to the same period last year, while Bangladesh's share was 14.3%, up 0.6 percentage points year-on-year.

The share of China's textile and apparel in the three markets of the United States, Europe and Japan has declined slightly, but there is no need to worry. Why?

Cao Jiachang said, in fact, most of the incremental parts of Vietnam and Bangladesh are the export share generated by Chinese enterprises in overseas investment or going out to build factories.

Cao Jiachang said that in order to find the global value chain depression and adapt to the change of the order demand in the international market, the Chinese textile and garment industry is now striding forward the strategic layout of globalization.

Its main mode is to set up factories overseas, find strategic partners, set up branches, achieve product display and overseas orders, speed up the construction of overseas warehouses, and so on.

In 2018, the export of textile and clothing was 276 billion 730 million US dollars, an increase of 3.7% over the same period, and imports of US $26 billion 140 million, an increase of 6.4% over the same period last year.

From the sub item point of view, in 2018, China's textile exports amounted to 119 billion 100 million US dollars, an increase of 8.1% over the same period last year, and clothing exports were US $157 billion 630 million, a 0.3% increase compared to the same period last year.

It can be seen that China's textile and clothing exports show a trend of upstream product export growth and downstream products export slowdown.

Cao Jiachang said that this is the result of the shift of China's garment manufacturing industry and the increase in demand for China's yarn and fabrics due to the incomplete industrial chain around the low cost garment producing countries.

According to statistics, China's exports of yarn and fabric to Vietnam and Bangladesh increased by 19.3% and 21.5% respectively in 2018.

Cao Jiachang said that the textile and garment industry should fully recognize the difficulties faced by the development of the industry.

In particular, Sino US trade friction will have a far-reaching impact on the future development of the industry.

"Although there are no major export products such as clothing and home textiles in the current dispute products, in order to avoid risks, American customers have explicitly requested suppliers to take precautions and gradually pfer production and pfer, especially those with long and slow requirements for delivery speed."

Cao Jiachang said.

In 2018, China's textile and apparel exports to the three major traditional markets of the EU, the United States and Japan were increased by 1.5%, 8% and 2.7%, respectively.

In addition, the exports of the countries along the "one belt and one way" maintained growth for three consecutive years, an increase of 5.3% in 2018, an increase of 11.7% in ASEAN exports and the fastest growth in major markets.

Cao Jiachang said that the textile and garment industry should also focus on the integration of domestic and foreign trade development.

With the reform of the supply side and consumption side and the gradual maturity and steady improvement of the domestic consumer market, more and more traditional foreign trade enterprises begin to undertake some high-quality domestic orders.

Leveraging the electricity supplier platform to become an excellent supplier of the domestic consumer market, and vigorously explore the domestic market.