Southeast Asia Wants to Outflank China's Textile Export Vietnam

The competitive advantage of Bangladesh lies in the fact that the United States and the European Union have provided preferential import conditions and low-priced garment exports.

In June this year, the Bangladesh Garment Manufacturers and Exporters Association, the Bangladesh Knitted Apparel Manufacturers and Exporters Association and the Bangladesh Textile Mills Association held a joint reception of the author: China, India, Pakistan and other three countries have already cut prices. The strategy has pulled back one city, so Bangladesh's export orders in the coming year have been gradually reduced. The three major chambers of commerce also stated that the Bangladesh government should also implement relevant economic stimulus plans, such as 15% cash incentives and tax exemptions, to increase the competitiveness of the country's garment industry.

From this perspective, a new round of price war is inevitable.

China's advantages are difficult to replace

Qian Jingfang, director of the Department of Textile Economics and Trade at Donghua University, believes that compared to other Southeast Asian countries, the competitive advantage of Chinese textile companies lies in the relatively high quality of China’s labor force, skilled workers, stable domestic political situation, and sound industrial chain. Management experience.

At the same time, Southeast Asian countries such as Indonesia and Vietnam have a small export output and have not formed scale.

Guo Yan, a professor at the Beijing Institute of Fashion, said that compared with China, exports of Southeast Asian textiles, although growing faster, are smaller in size. “Equivalent to the comparison between a child and an adult, it cannot be compared with the total amount of Chinese exports.” She gave the author an example. For example, in the US market, Chinese textile exports account for approximately 20% to 30%, while the market share of other Southeast Asian countries is less than 10%. At present, only some orders have been transferred.

Although the export growth rate of China's textile enterprises has declined, it is the price reduction. The shift to Southeast Asian countries is low-end products, and mid-range products remain in the country.

According to Guo Yan's research in Vietnam, she discovered that Vietnam purchased its own low-end products from China and then used their own “low-end” products to export to the United States.

She provided the author with such a set of data: Although Bangladesh, Vietnam, and Indonesia, the export volume of apparel textiles is ranked top in the US market, they do not have a dominant price. In 2010, Chinese textiles exported over US$20 billion to the United States, Vietnam was US$5.8 billion, Indonesia’s US$4.4 billion, Bangladesh’s more than US$3.9 billion and Cambodia’s US$3.2 billion.

In addition, Southeast Asian countries are more emphasis on processing and production of textiles and clothing, fabrics, yarn and other raw materials rely on imports from China.

Moreover, a common disadvantage of countries such as Southeast Asia is that the quality of the workforce is relatively low, and skills are not as good as those of the Chinese labor force.

The experts interviewed by this reporter all stated that China's textile industry should occupy a high-end market, adjust its structure, realize product technology innovation, and do a good job of brand promotion.

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