Taiwan Textile Industry Vietnam Investment Garment Factory

Textile operator Ru hung will build a new production base in Indonesia. It was thought that the Vietnamese textile industry invested in Vietnam's fever. However, according to the board of investment statistics, the total investment of the textile industry in Vietnam in 2019 reached US $83 million 834 thousand, setting a record high of fourth years. The capital structure was replaced by the cloth factory "take the rod" garment factory, which is the main force for Taiwan businessmen to invest in Vietnam.

According to the analysis of the industry, as long as the Sino US trade war started, the Taiwan textile mill has already taken the lead in the layout of Vietnam. It is not a prediction ability. Instead, it is looking at the local demographic dividend and cheap wages, attracting textile operators Ru Hong, Yang Yang and Guang Yue to invest continuously in Vietnam in the past 5 years, and to increase the proportion of Vietnam origin production.

However, in September 2019, he suddenly announced that he would transfer resources to Indonesia, and was ready to build a new production base in 3 years. It was thought that the Vietnamese investment boom would lead to a change in the investment direction because of Confucianism. But according to the statistics of the Ministry of economic affairs, the textile industry and the two items of clothing and accessories manufacturing industry combined, Taiwan invested in 83 million 834 thousand of the textile industry in Vietnam. Although it decreased by 16.8% a year, it still ranked fourth in the past year, only 139 million dollars in 2016, 100 million US dollars in 2018, and 87 million 797 thousand US dollars in 2008.

Careful observation of investment portfolio, clothing and clothing manufacturing industry to invest only $13 million 322 thousand a year, accounting for only 15.8% of the total textile investment.

Historical data show that 2012-2016 years of investment in garment factories to Vietnam accounted for 3-4 of the textile industry than the fall, and in 2013 it was as high as 7. In the past, the downstream garment industry was the main force in Vietnam, but now it has been transformed into the upstream supply chain of textile.

Among them, the Far East has adopted its consistent mode. Last year, the knitted fabric factory was preparing to produce 2 stages of production capacity. Last year, cumulative investment in Vietnam amounted to 13 million 600 thousand US dollars, and xingcai also announced that it would raise 10 million dollars.

Guo Fengnian, general manager of Taiwan's top 5 knitted fabric factories, Mian Chun, announced that the next 2 years will invest 30 million US dollars to expand the Vietnamese production line. Guo Fengnian further said that at present, the proportion of Mian Chun's capacity in Taiwan and Vietnam is 7:3, and the target should be adjusted to 1:1 in 2021, that is to say, Vietnam has to increase production capacity.

The above manufacturers are adding more cloth, and the industry has analyzed the Vietnam investment fever. The cloth factory has taken the bar from the garment factory and continues to compete in Vietnam.

Hong Zhenhai, chairman of Ru hung, used to comment on the investment conditions in Vietnam. He described that if it was a labor-intensive industry to Vietnam, "we could only wait for death" because of the serious shortage of local workers and the wage increase was much higher than the local government announcement.

That is to say, the two pressures of lack of labor and wages are all urging the garment factories to expand their capacity if they want to expand their production capacity. But at the moment, they are willing to go to Vietnam. Guo Fengnian analysis shows that actually, the personnel needed for the cloth factories are not as good as the garment factories, and the downstream garments manufacturing is labor-intensive industries. The negative impact is relatively small.

A cloth manufacturer pointed out that the consumer market is changeable, brand customers must rush fast, so that products can be quickly mounted or replaced to reduce the risk of unmarketable or inventory costs, because Vietnam has a large garment factory OEM settlement, if the cloth factory near the shipment to the garment factory, can achieve short delivery target, which is why the cloth factory to Vietnam investment main reason.