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

Sanjay K Jain, managing director, TT Ltd

Textiles | On 21st Sep 2017

TT’s Sanjay Jain elected new chairman of CITI

The Confederation of Indian Textile Industry (CITI), the apex body...

Textiles | On 21st Sep 2017

NRF urges US lawmakers to lower corporate tax rates

The National Retail Federation (NRF) has written to the US Senate...

Apparel/Garments | On 21st Sep 2017

UK fashion exports £10.7 bn in 2016; highest till now

Exports of British fashion goods rose to £10.7 billion in 2016, the...

Interviews View All

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Top executives
Textile industry, India

Such fairs are a must for industry to showcase new innovations

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Jay Ramrakhiani
Occasions Elegance Wear

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

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search