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

    2020/11/5 18:08:00 16

    Textile IndustryInvestmentValue

    Since the reform and opening up of Vietnam in 1986, Vietnam has made remarkable achievements only next to China in economy. With the gradual opening up of the market by the Vietnamese government, the relaxation of foreign shareholding ratio and other policies, and the active encouragement of foreign strategic investment, more and more countries have invested 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 enough or competitive raw materials, leading to enterprises unable to meet the requirements of origin and can not enjoy tax incentives.

    Vietnam and the European Union signed a bilateral free trade agreement on August 1 this year, according to which, 77.3% of Vietnam's textile exports will enjoy zero tax rate in the first five years.

    The agreement is the second trade agreement between EU and ASEAN Member States, second only to Singapore, and one of the few trade agreements with developing countries. The agreement will see Vietnam eliminate 99% of its import tariffs in 10 years, while the EU will eliminate the same import tariffs in seven years.

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

    Recently, the UK based charity Allen MacArthur Foundation reported that with the growth of resources and environmental protection 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 circular economy in 2005. With the expansion of the new middle class and the improvement of consumption consciousness, the potential of China's textile and garment market as a driving force of sustainable consumption industry 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, China's textile waste recovery rate is estimated to reach 17%.

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

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

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