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    Compared With Vietnam, China'S Textile Industry Has More Investment Value

    2020/11/5 18:08:00 243

    Textile IndustryInvestmentValue

    Since Vietnam's reform and opening up in 1986, it has made remarkable economic achievements second only to China. As the Vietnamese government gradually opens the market, relaxes policies such as foreign capital shareholding ratio, and actively encourages foreign strategic investment, more and more countries invest in Vietnam. This Southeast Asian country, which is in the stage of rapid development and known as the "next China", is attracting the attention of global investors.

    However, Vietnam's own conditions are limited, and the textile industry does not have sufficient or price competitive raw materials, which leads to the inability of enterprises to meet the requirements of origin and enjoy tax preferences.

    On August 1 this year, Vietnam and the EU signed a bilateral free trade agreement. According to this provision, 77.3% of Vietnam's textile exports will enjoy zero tax rate in the first five years.

    This agreement is the second trade agreement between the EU and ASEAN member countries, second only to Singapore, and one of the few trade agreements reached with developing countries. This agreement will see Vietnam eliminate 99% import tariffs within 10 years, while the EU will also eliminate the same import tariffs within 7 years.

    As China's textile and clothing industry has a wide range of products, a long industrial chain and a large number of products, there is great room for improvement in terms of the replacement scale of non renewable raw materials, the production, recycling and reuse of textile waste, recycling design and green consumption.

    Recently, Alan MacArthur Foundation, a British based charity, reported that with the growth of resource and environmental requirements, it is imperative to expand the scope of China's industrial circular economy transformation.

    The report also said that China's textile and clothing industry plays an important role in the global fashion industry, and its circular economy transformation is crucial to the future of global circular fashion, and will have a profound impact on the development of the entire clothing industry.

    China began to develop a circular economy in 2005. With the expansion of the new middle class and the improvement of consumer awareness, the potential of China's textile and clothing market to become a driving force of sustainable consumer industries will be further enhanced.

    The proportion of recycled fiber processing in China increased from 9.6% in 2010 to 11.3% in 2015, and the output in 2018 exceeded 7 million tons. In 2018, the recovery rate of China's textile waste is estimated to reach 17%.

    At this stage, China's textile and clothing industry has put forward a new vision: a green, circular and low-carbon textile and clothing industry system. The new textile economy proposes five goals, involving raw materials, design, production, consumption and recycling.

    Compared with the annual capacity of China's textile printing and dyeing industry of 80 billion meters, the annual capacity of Vietnam's textile mills is only 2.5 billion meters, but Vietnam's textile demand is 80 meters. Although not comparable to the size of China, it also has certain investment value.

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