Mass transfer of textile industry will not happen in at least 3-5 years (China)
Yang Shi-Bin, deputy secretary general of the China Textile Industry Association says that domestic knitting and garment enterprises have shown a significant momentum of shifting their production capacity outwards.
Bangladesh has become the second largest knitwear exporter beyond China; its exports are about one-third of China’s exports. Japan has transferred most of its textile production capacity to these places; the most importance in Japan’s consideration is human cost and tariff policy.
Some insiders of the industry are concerned that overseas move of the textile industry may result in hollowing out of China's domestic industries, while China’s central and western regions may miss development opportunities as they fail to undertake these industries.
China National Garment Association says that comparative advantages of different regions are different, the capacities transferred to Cambodia and other places are relatively low-end production capacities. Some enterprises have made their layout in central and western China with higher quality products.
A listed fabric company in China had planned to set up factory in Southeast Asia, but after investigation, it finally decided to terminate the plan. The company says that textile enterprises will make global allocation of resources, China still has an advantage in high-end manufacturing sector, and companies can pass on their costs to downstream sectors.
Although Southeast Asian countries enjoy low labor costs, they are in short of technical personnel, supporting industries are imperfect, infrastructures are weak, and their industry chain is not complete. Therefore, mass transfer of the textile industry will not happen in at least 3-5 years.
Bangladesh has become the second largest knitwear exporter beyond China; its exports are about one-third of China’s exports. Japan has transferred most of its textile production capacity to these places; the most importance in Japan’s consideration is human cost and tariff policy.
Some insiders of the industry are concerned that overseas move of the textile industry may result in hollowing out of China's domestic industries, while China’s central and western regions may miss development opportunities as they fail to undertake these industries.
China National Garment Association says that comparative advantages of different regions are different, the capacities transferred to Cambodia and other places are relatively low-end production capacities. Some enterprises have made their layout in central and western China with higher quality products.
A listed fabric company in China had planned to set up factory in Southeast Asia, but after investigation, it finally decided to terminate the plan. The company says that textile enterprises will make global allocation of resources, China still has an advantage in high-end manufacturing sector, and companies can pass on their costs to downstream sectors.
Although Southeast Asian countries enjoy low labor costs, they are in short of technical personnel, supporting industries are imperfect, infrastructures are weak, and their industry chain is not complete. Therefore, mass transfer of the textile industry will not happen in at least 3-5 years.
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