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China losing low-end apparel orders to Asean: Analysts
May '13
Some low-end apparel orders are getting transferred to Southeast Asian countries, owing to gradual disappearance of cost advantage in China, according to analysts.
The transfer of low-end orders is having an impact on China’s garment exports, said Li En, vice president of the Apparel Industry Association of Guangdong Province.
According to him, when manufacturing cost advantage declines and it is not balanced by other new advantages, it results in stagnation or even dip in export growth.
The monthly salary for garment workers in Southeast Asian countries is in the range of US$ 80-120, while wages in China are around four times more, said general manager of Everstar Garments Co., Ltd. Fan You Bin.
It is trend that when a country’s economy develops to a certain stage, some changes are bound to occur, such as shifting out low-end manufacturing, and paving way for industrial transformation and upgrading, Mr. Bin added.
The introduction of efficient equipment to make up for the gap created by manufacturing costs, would result in improved quality of final products, he said. According to him, China still retains evident advantage in high-end clothing.

Fibre2fashion News Desk - China

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