CHINA: There are indications that a “quiet migration” of textile and apparel companies from China is taking place as operational costs in the PRC rises. The winners of this migration are Vietnam, Cambodia and Bangladesh.
This is resulting in China now shifting its focus on more integrated design intense manufacturing targeting China’s growing internal fashion sector and seeking penetration into the global fashion design sector.
A key indication of the migration, particularly in Southern China, the “textile hub,” is reflected in the sharp decline in imports of machinery and technology by the region’s textile and garment industry. Japanese and German machinery manufacturers, whose products are popular with textile manufacturers in Southern China, have confirmed that demand has plummeted –by 35 percent in some cases –because of the migration to Vietnam, Cambodia and Laos. However, those companies that remain are forced to invest in operations to produce upper-end products.
Chinese exports for textile and apparel during the months January to November 2009 was down 11.02 % (154, 12 billion US$) compared with the same month to month period in 2008. However, statistics reflect a 2,2% increase in textiles and apparel for January 2010 compared to the same month last year.
While exports declined China’s domestic and apparel market grew. Retail sales of clothing were 24.7% higher in November 2009 than that of the previous year. Even though the global market for 2009 was unstable there was continual investment in the textile sector. Investment in fixed assets for the first eleven months of 2009 increased by 9.53% in comparison to 2008.
This is the last year (2010) of the 11th Five-Year Plan for the Textile Industry and the second year of the Textile Restructuring and Revitalization Plan. China is focusing on new technology upgrades and on its local market to compensate for the decline in exports and the shift in foreign investments.
THAILAND: Thailand earned US$17,628 billion in “fashion exports” for the year 2009, an increase of 2,24% from 2008. The textile sector’s input into the total export results was US$6.443 billion, whilst the apparel sector contributed US$2,961 billion, with leather goods, “travel-kits, shoes and gems and jewelry making up the remainder. Export projection for the same products for 2010 is expected to reach between US$20,315 and 20,999 billion. One of the major factors driving this growth is the collective input and single vision of Thailand’s government and private sectors.
VIETNAM: It is estimated that a total of US$58.5 million will be invested in the textile and apparel sector for 2010 in technology upgrading, according to the Vietnam National Textile and Garment Group (Vinatex). The company is the largest textile company in Vietnam. According to The Vietnam Textile and Apparel Association the textile and apparel sector requires nearly 2 billion square meters of fabrics per annum to service these sectors. Currently Vietnam’s local production capabilities is 700 million square meters which equates to 35% of the total demand. Imports from China, Korea, India and Japan make up the shortage. Due to Vietnam’s cheap production cost (cheap labour) a Chinese fabric supplier Texhong Textile group will be investing US$100 million in a new yarn plant.
INDIA: India’s synthetic and rayon Textile Export Promotion Council plans to double its exports of man-made textiles. Currently India accounts less than 3% of the global market. Indian exports of man-made textiles is worth US$3,42 billion. India exports 32% of its man-made textiles to the Middle East, 21% to Europe, 16% to the US and 15% to Africa.
BANGLADESH: Currently Bangladesh exports apparel worth US$10.9 billion. Imports of textile equipment from Italy equated to 41 million Euros in 2008 and 18 million Euros of new technology during 2009 which consisted of finishing equipment, spinning, weaving and knitting equipment.
Written by The ReDress Consultancy.
Sources:
Textile Global. 14 May, 2010
China Textile Magazine. 12 April 2010
ATA Journal for Asia on Textile & Apparel - Apr 2010 Issue
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