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Investments in T&C sector growing in central & western provinces
28
Nov '08
The textile and garment industry which was all along and for many years more concentrated on the south eastern coast of China is now seeing a lot of investment being poured in to the central and western regions resulting in a faster growth rate in these regions.

The central region of China topped the charts for the highest number of investments in textile and garment manufacturing in the period Sept '07 – Aug '08, while the western region saw investments in fixed assets in the sector growing by an unprecedented 83.55 percent in the same period.

New investments in the cotton textile industry witnessed a negative growth in the south eastern provinces while investments in the garment industry edged up by a marginal 1.24 percent. Shandong province which has the highest concentration of industries in the sector and in the region saw investments falling by as much as 30 percent in the period.

For long, the sector was considered a labour intensive industry, but is under increasing pressure to adopt technologically superior machineries to face competition from foreign countries. The clothing industry is also in the process of evolution whereby it is transforming itself from a mass producing industry to branding of products.

This has come about due to the fall in growth rates in exports of clothing in the current year and has forced companies to revisit their strategies. According to experts, the primary force driver for growth in 2009 and the following years for the sector will be the domestic market rather than the international market.


Fibre2fashion News Desk - China


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