In recent years, trade and investment cooperation in the textile and apparel fields between China and ASEAN have developed rapidly.
China-ASEAN textile and apparel industry cooperation and complementation Strong sex
China is the world’s largest producer and exporter of textiles and clothing. It has a complete industrial chain in the world, a complete range of textile industry categories, high levels of processing facilities, advanced technology, and cost-effectiveness. High, able to meet the needs of ASEAN textile and garment enterprises.
The textile and garment industry is one of the important manufacturing industries in ASEAN countries such as Vietnam, Indonesia, Cambodia, Myanmar, and Thailand. It has labor cost advantages, cotton price advantages, tariff preferences, and There are preferential policies to attract foreign investment.
In recent years, many Chinese textile and apparel companies have invested and set up factories in ASEAN countries, promoting the international development of China’s textile and apparel industry.
The textile and garment industry is one of the leading industries in China’s active promotion of the “One Belt and One Road” construction. It is also an important industry for countries and regions along the “One Belt and One Road” to promote industrialization, create national wealth and provide services. Preferred production industry with large number of jobs. In the construction of the “Belt and Road” initiative, ASEAN is an important partner of China and one of the key areas for China’s international textile production capacity cooperation.
ASEAN countries have many business opportunities in the textile and apparel industry
1 Vietnam
Vietnam is recognized as the world’s third largest clothing exporter, and textiles are one of Vietnam’s key export products. In 2018, Vietnam’s textile industry exported approximately US$36.2 billion, and imported raw materials and accessories amounted to US$23.6 billion, including: imported fabrics of approximately US$12.8 billion, various textile industry accessories of approximately US$5.47 billion, cotton of US$3 billion, and textile yarns of approximately US$12.8 billion. US$2.419 billion. In the first nine months of this year, Vietnam’s textile and apparel exports showed a growth trend, reaching US$24.8 billion, an increase of 10.4%.
Since 2019, driven by the expansion of domestic textile production, increased foreign investment, and opportunities such as the CPTPP and the Vietnam-EU Free Trade Agreement, Vietnam’s cotton imports are expected to be 760 Thousands of packages. It is estimated that textile and clothing exports in 2019 will reach US$40 billion, an increase of 14-15% over the previous year.
In recent years, Vietnam has taken advantage of the new opportunities brought by the signing of free trade agreements to cover the entire textile industry chain and continue to absorb a large amount of investment from home and abroad. Around Ho Chi Minh City, textile companies from China are also increasing investment, and even use the phrase “Vietnam ushered in a golden decade of textile industry” to describe this development process. Large-scale enterprises such as Huafu Fashion, Tianhong Textile, Lu Thai and Blum Oriental Textile companies are expanding production capacity in Vietnam.
▌Vietnam Investment Guide
2 Indonesia
Indonesia released The Manufacturing 4.0 development roadmap aims to keep up with the pace of global industrial modernization. The Indonesian Ministry of Industry has identified the textile and garment industries as one of the five priority industries in the Indonesian Industry 4.0 plan. To improve the competitiveness of the textile industry, the Ministry of Industry will work to strengthen human resource training, technology upgrading and digital technology support for the industry. The government will continue to seek low or zero tariffs for Indonesia from relevant export market countries and increase efforts to develop local specialty brands.
In 2018, one of Indonesia’s largest sources of foreign exchange earnings was the textile industry, with exports reaching US$13 billion, a year-on-year increase of 5%. The Indonesian Minister of Industry said that the growth rate of Indonesia’s textile industry in 2018 reached 8.75%. The textile industry is not only one of Indonesia’s main economic drivers, it also provides employment opportunities for more than 3 million people and focuses on the export of products.
Data provided by Statistics Indonesia show that Indonesia’s textile industry is expected to grow by 19% in 2019, with no signs of slowing down. In the first quarter of 2019, export orders for Indonesian garment production soared by 29%, which promoted the development of Indonesia’s entire textile industry, causing the overall output of Indonesian textile products to increase by 4.5% during the same period.
3 Cambodia
Cambodia’s largest industry is the light textile industry: accounting for 75% of Cambodia’s total exports Above, there are 700,000 employees (according to data on workers who purchase insurance provided by the government), but in fact there are about 1 million direct employees, and about 4 million people rely on this industry to support their families, accounting for a quarter of the country’s population. A young labor force and international trade preferences are Cambodia’s advantages in attracting investment. Nearly 1,000 textile companiesUnderstand the industry information of ASEAN countries and identify partners in ASEAN countries;
Find the right industrial parks for Chinese textile and garment enterprises to be established in ASEAN countries to promote the globalization of the entire industry chain and supporting development;
Carry out trade and investment cooperation with local enterprises in textile raw materials and accessories, machinery, dyes, auxiliaries, etc.;
China Textile It has a complete range of industrial categories, advanced equipment, and low prices and maintenance costs, making it easier for ASEAN companies to accept it. Chinese textile and clothing machinery and equipment companies have entered ASEAN to cooperate with them in updating machinery and equipment to help ASEAN countries improve production efficiency.
Recently, the textile and apparel industry trade and investment cooperation report between China and the five Mekong countries mentioned that the textile and apparel industry is a pillar industry shared by the Lancang-Mekong countries and is also an important factor for the six countries to promote trade exchanges and It is an important entry point and growth point for investment interaction and establishment of a production capacity cooperation system.
Lancang-Mekong Cooperation (hereinafter referred to as “Lancang-Mekong Cooperation”) is a new sub-regional cooperation mechanism jointly initiated and built by China, Cambodia, Laos, Myanmar, Thailand and Vietnam. According to the “3+5+X Cooperation Framework” determined by the governments of the six countries, production capacity cooperation is a priority area of cooperation and development among the six Lancang-Mekong countries.
In 2010, the China-ASEAN Free Trade Area was fully established. After the transition period, Vietnam, Laos, Cambodia and Myanmar Tariffs on most goods exported from China have now been reduced to zero, further promoting trade and cooperation between the textile industry chains of China and the five Mekong countries. As cooperation in the industrial chain becomes increasingly closer and trade exchanges develop actively, the importance of the five Mekong River countries in China’s textile industry export trade is increasing.
Thanks to their geographical proximity and the dual preferential tariff conditions of the China-ASEAN Free Trade Area, the five Mekong River countries have become one of the most important import sources for China’s textile industry.
China’s export of textiles and clothing to major countries and regions in 2018
Yarn is the most important textile and apparel product that China imports from the five Mekong River countries. In 2018, the import volume reached US$2.47 billion, accounting for 46.2% of China’s total textile and apparel imports from the five Mekong River countries, and accounting for China’s total yarn imports from the world. 30.4%.
Among them, cotton yarn imports amounted to US$2.18 billion, accounting for 88.2% of yarn imports from the five Mekong countries and 37.3% of China’s global cotton yarn imports. Vietnam is the largest source of yarn imports among the five Mekong River countries, and is also the largest source of yarn imports from China. Some of the yarns are products of Chinese-funded enterprises and are returned to China for further processing.
In 2018, China’s yarn imports from Vietnam reached US$2.35 billion, accounting for 95.1% of yarn imports from the five Mekong River countries. Vietnamese cotton yarn was imported from the five Mekong River countries. The proportion of the amount reached 98.3%.
Clothing is another major category of products that China imports from the five Mekong River countries. The import volume in 2018 was US$2.15 billion, accounting for 40.2% of China’s total textile and clothing imports from the five Mekong River countries. , knitted clothing imports are slightly more than woven clothing.
Vietnam is the largest source of imports among the five Mekong River countries, and is also China’s largest source of clothing imports. In 2018, its import volume reached US$1.47 billion, accounting for 10% of the total imports from the five Mekong River countries. 68.2% of the import value. Clothing imports from Cambodia and Thailand reached US$400 million and US$230 million respectively, accounting for 18.1% and 10.7% of China’s clothing imports from the five Mekong countries respectively.
Clothing is also the fastest-growing product imported by China from the Lancang-Mekong countries. Affected by the adjustment of the procurement layout of international brands, more and more clothing products produced by the Lancang-Mekong countries are entering China. Domestic market.
In 2018, China’s clothing imports from the five Mekong River countries increased by 93% compared with 2015, with an average annual growth rate of 24.5%, which was higher than China’s global clothing imports during the same period. The growth rate was 18.1 percentage points higher.
Among them, the average annual growth rate of clothing imports from Cambodia, Vietnam and Laos exceeded 20%, reaching 26.2%, 25.8% and 21% respectively. In the first half of 2019, China imported a total of US$1.04 billion in clothing from the five Mekong River countries, a year-on-year increase of 16.1%, which was 13.9 percentage points higher than the growth rate of China’s total clothing imports during the same period.
China’s textile and clothing exports to the five Mekong countries by category
The current stage of import and export trade The structure reflects that China and the five Mekong River countries have formed an industrial chain of “China’s textile fabric supply-the five Mekong River countries’ garment processing”; a considerable part of the yarn products produced in Vietnam also enter China for downstream weaving, dyeing and finishing processing. It has become an indispensable raw material supply for China’s textile industry chain; some clothing products produced by the five Mekong countries have also entered the Chinese domestic market, providing Chinese residents with more high-quality and low-cost consumer choices.
China and the Five Mekong Countries Schematic diagram of textile and apparel trade structure
In recent years, the cooperative relationship between China’s textile equipment manufacturing industry and the textile industries of the five Mekong countries has become increasingly close. In the future, as the textile industry chains of the five Mekong countries develop towards refined and deep processing links, the space for cooperation with the Chinese textile industry will become more diverse.
Schematic diagram of the textile and apparel trade structure of the five Mekong River countries
In recent years, the cooperative relationship between China’s textile equipment manufacturing industry and the textile industry of the five Mekong River countries has become increasingly close. In the future, as the textile industry chains of the five Mekong countries develop towards refined and deep processing links, the space for cooperation with the Chinese textile industry will become more diverse. </p
