Home / Knowledge / News / Apparel/Garments / Chinese apparel units indecisive about relocating
Chinese apparel units indecisive about relocating
08
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

US & EU retailers release industry approach to GDPR

Apparel/Garments | On 24th May 2018

US & EU retailers release industry approach to GDPR

The Washington, D.C.-based National Retail Federation and...

Global cotton consumption to reach record in 2018-19: USDA

Textiles | On 24th May 2018

Global cotton consumption to reach record in 2018-19: USDA

Reflecting continued growth in the global economy, world cotton mill...

Courtesy: Nanollose

Textiles | On 24th May 2018

Nanollose develops fabric from coconuts

Australian technology company Nanollose has developed a sustainable...

Interviews View All

Top executives
Textile industry, India

The event should be organised every year

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

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

news category


Related Categories:

Advanced Search