Home / Knowledge / News / Apparel/Garments / 'Chinese garment sector prefers Asean for relocation'
'Chinese garment sector prefers Asean for relocation'
03
May '14
Chinese garment enterprises prefer Southeast Asian region over other places for relocation of their manufacturing, as the ‘going out’ pace accelerates, according to industry analysts.
 
China’s cost advantage in garment production has gradually disappeared and more and more clothing orders are moving to Asean region due to low production costs and improved industrial capacity enhancement there. This, along with high production costs and low operating margins in domestic production, is forcing China’s garment enterprises to accelerate the ‘going out’ pace.
 
Industry analysts point out that China currently has complete textile and apparel industrial production chain and if the whole industry transfers to other places, then it will affect the domestic industry.
 
The top most factor that makes the Asean region a preferred destination for the Chinese garment enterprises considering relocation is the difference in labour costs. For example, a garment worker in Cambodia draws less than 1,000 yuan per month compared to a salary of 3,000 yuan in China.
 
The second factor is the rising enthusiasm of governments of Southeast Asian nations for attracting foreign investment. The industrial supporting capacity has gradually increased in Cambodia, Vietnam, Indonesia and other Southeast Asian nations.
 
Another advantage, especially for those who are investing in new manufacturing units, is they have latest advanced equipment which offers production efficiency. The cost of land for setting up new units is also lower in Southeast Asian countries compared to China.
 
Most importantly, the local garment processing capacity has gradually improved in Southeast Asia, which makes the region a preferred destination for relocation of Chinese garment manufacturing.
 

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Messe Frankfurt

Textiles | On 24th Mar 2017

Over 3341 exhibitors participate in Intertextile Shanghai

More than 3,341 exhibitors from 26 countries and regions participated ...

Courtesy: Bebe

Apparel/Garments | On 24th Mar 2017

Bebe Stores exploring strategic alternatives

Bebe Stores has announced that its board of directors is exploring...

Apparel/Garments | On 24th Mar 2017

Tiruppur garment cluster hopeful of meeting export target

The Tirupur garment cluster is hopeful of meeting its target of...

Interviews View All

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Eamonn Tighe
Nature Works LLC

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

Kevin Nelson
TissueGen

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

Suresh Patel
Sidwin Fabric

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Sanjukta Dutta
Sanjukta's Studio

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

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

news category


Related Categories:
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search