Home / Knowledge / News / Apparel/Garments / Chinese apparel units indecisive about relocating
Chinese apparel units indecisive about relocating
May '12
Considering that costs are increasing relentlessly, textile and apparel enterprises have the option of either relocating to Midwest China or neighbouring Cambodia and Vietnam.

A survey conducted by China Federation of Textile Industry reveals that employment costs of the textile industry have risen 12.6 percent since 2011 and overall costs have increased by 10.8 percent, while profit margin has declined 2.5 percentage points.

The difficulties currently encountered by the textile industry are more serious than the ones they encountered in the 2008 international financial crisis.

Some enterprises have even stopped production in some segments due to business difficulties, especially processing enterprises are under more difficult circumstances.

To reduce labor costs, China's textile enterprises have two options to relocate factories. One is the Midwest of China, the other is Cambodia.

However, some companies say though labor costs of the Midwest is indeed less than two-thirds of that in Zhejiang, but labor costs in Midwest are still more than double from Cambodia.

In addition, transport costs of their exports would be higher, if they move to the Midwest.

Countries like Cambodia and Bangladesh have least developed country (LDC) status, so their textile exports to the European Union, Canada and Japan enjoy duty-free measures.

Cambodia maintains good relations with China, so investment risk is relatively small. They also consider Vietnam also as a good place for relocation, but labor force is relatively scarce in Vietnam.

Some companies are still indecisive, despite temptation of low-cost. They say labor productivity is low in Cambodia and Vietnam and workers strikes are a common phenomenon. So, they have to take these risks into account.

Fibre2fashion News Desk - China

Must ReadView All

Apparel/Garments | On 26th Oct 2016

SGS develops 4C chemical management model for apparel

SGS, a leading inspection, auditing, certification, testing, and...

Textiles | On 26th Oct 2016

Platinum Equity acquires International Textile Group

International Textile Group (ITG) has been acquired by Platinum...

Textiles | On 26th Oct 2016

Whitehouse & URI Business Centre start RI textile network

Senator Sheldon Whitehouse and the University of Rhode Island...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Angelina Francesca Cheang

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search