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    International Observation: ASEAN Countries' Leading Position In The Global Textile Manufacturing Industry

    2023/6/21 13:08:00 0

    ASEAN


    The global textile manufacturing industry has traditionally been linked with China, the United States, and the EU's France, Germany, Italy, Spain, Portugal, India, Bangladesh, and Vietnam. Some emerging ASEAN countries are becoming strong textile manufacturing bases. Faced with the rising labor costs in China, the slow cycle of demand in western countries, and the troubles caused by the continuous interest rate increase in the United States, ASEAN countries are trying to make full use of these opportunities.

    The situation in India is almost the same. Inflation is rampant at home. This increases the input cost, so the finished product becomes more expensive. Research shows that 40% of manufacturers have transferred their products from India and China to the United States. Manufacturers that did not move back to the United States found other cheaper manufacturing bases. India is no longer the preferred destination for global outsourcing.

    At present, countries of the Association of Southeast Asian Nations (ASEAN) are making use of the power of trade, labor transfer and transferable capital to create prosperity in Southeast Asia. In particular, the international garment industry within ASEAN is helping to integrate regional investment, transfer skills, create jobs and promote economic growth.

    ASEAN countries are steadily entering the global textile market. Cambodia, Thailand, Vietnam, Myanmar, the Philippines and other countries have potential strong textile markets, and the industry is developing well. Textile exports are also increasing. These countries have begun to form fierce competition with India and China.

    In the distant future, they will have a fair opportunity to dominate the global textile market. Alfred Tan, vice chairman of the Cambodian Association of Textiles, Clothing, Footwear and Tourism Products (TAFTA), recently said that the textile industry is the key to many ASEAN economies and operates in the competitive market. He claimed that the region had performed well in gaining more global market share and was another source of supply for China and some other major suppliers. He also stressed that in the past decade, the overall gap between production costs, including raw materials, labor, logistics and compliance, and FOB export prices and retail prices has narrowed. He predicted that this trend would continue in the next decade. ASEAN countries' governments have quickly realized the future potential of domestic employment and foreign exchange earning in the textile industry. Most of them provide tax exemption for the manufacturing industry, and cooperate with the textile industry to attract local, regional and international direct investment.

    The ASEAN Textile Industry Federation (AFTEX) is a textile and clothing association composed of 10 ASEAN member countries. It launched the ASEAN Comprehensive Service Association (SAFSA). SAFSA is committed to connecting ASEAN garment factories and establishing a virtual vertical supply chain among buyers, textile mills and garment factories, so that enterprises can provide complete service packages for international buyers. SAFSA has 45 members dealing with each other, including 27 buyers, with annual clothing sales exceeding 50 billion dollars. Some of the major brands of SAFSA customers are Benetton Group, Columbia Sportswear, Debenham, Guess, M&S, Ralph Lauren and Outu Group.


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