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Chinese firms focus on Asean for low-cost production
19 Aug '13
1 min read
Chinese textile and garment firms are focusing on Asean nations to maintain low-cost production, in accordance with ‘going out’ strategy, according to the China National Textile and Apparel Council (CNTAC).
Owing to rising labour and other costs, Chinese companies are losing orders to lower cost countries like Bangladesh and Cambodia. To cope with the problem, some textile and garment producers are shifting their low-cost production overseas, particularly to countries in Southeast Asia, in order to maintain the lowest cost of production.
CNTAC said that in following the ‘going out’ strategy, some textile and apparel manufacturing capacity will be transferred from China to lower-cost countries.
There are bout 120 Chinese textile companies already operating in the Asean countries, according to the data from the China Textile Union.
In accordance with the ‘going out’ plan, China’s banking industry will give financial support at preferential rates to companies setting up manufacturing units in other countries.
Fibre2fashion News Desk - India
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