Textiles industry should focus on higher-end markets, says John Tsang

22 Jun '05

2 min read

Local textiles and clothing manufacturers should look to higher-end markets, focus on fashion design, develop brands, set up regional distribution networks and seek to establish a foothold in the Mainland's fashion market under CEPA to maintain competitiveness, Secretary for Commerce, Industry & Technology John Tsang says.

Replying to Wong Ting-kwong's query in the Legislative Council, Mr Tsang said the removal of quota restrictions on textiles and clothing products since January this year has brought Hong Kong businesses opportunities to broaden the scope for market expansion. However, the move has also brought challenges for the city, as it has to compete freely with places with lower production costs.

For the first four months of this year, the values of Hong Kong's textiles and clothing domestic exports and re-exports were $11.26 billion and $79.15 billion, representing a fall of 33.8% in domestic exports but a surge of 15.3% in re-exports over a year earlier.

US safeguard measures under close watch

Mr Tsang also noted the safeguard measures taken by the US against the Mainland's textiles and clothing products and the agreement reached between the Mainland and the EU on June 11 on the quantitative limits on certain Mainland's T&C exports to the EU are applicable to Mainland products only. They will not apply to those products of Hong Kong origin.

He anticipated these measures in the short term might slow the fall in Hong Kong's textiles and clothing domestic exports, but hamper the growth in the city's re-exports of such products of Mainland origin.