To division of labor in the global market is bound to promote the industrial transfer, especially in the cost efficiency of be particular about the textile clothing industry. Experienced policy is good, the quota as the driving force of the two important stages, after today, factor cost rose to become China's textile and garment enterprises "run away" the fundamental reason. In this opportunity, India, Sri Lanka, Burma, Indonesia and other countries are thrown and the olive branch, want to use force to hold the perfect time for industry development. On the other hand, our country enterprise also hope to through the on-the-spot investigation to weigh the production advantage from country to country.

To promote the transformation and upgrading of textile and garment industry in China, and promote enterprises to carry out the strategy of "going out" development, in early April, the China national textiles import and export chamber of commerce organizations in our country FangQi in places such as India, Sri Lanka for textile and garment industry development, trade and investment environment carried on the thorough research. Returned, as was the team leader, secretary general of the China national textiles import and export chamber of commerce Zhang Xian in addition to the research achievements of local investment environment, also began to ponder the question: market-oriented behavior caused by investment trends in irreversible, but the deep reason of domestic textile and garment enterprises to transfer what? Too quick to industry transfer will bring how to influence the development for the industry as a whole?

Industry transfer way

Nearly two years, China national textiles import and export chamber of commerce (hereinafter referred to as the "textile chamber of commerce") organized a trip to southeast Asia countries frequency increase. Since last June's trip to Burma, Indonesia, at the beginning of this year's examination of Thailand, Bangladesh, Malaysia three silk, and a month ago, and India, Sri Lanka industry communication access. Textile and garment industry shift of attention to southeast Asia, also makes more and more companies want to look for opportunities here. "Whether from our led to or from the enterprise information, we can feel the industry has a strong interest in investment of production of southeast Asian nations. In this context, we lead the 5 companies fieldwork LanDiKe Indian cloth garment city investment environment (BIAC). During this time, also with India and Sri Lanka, industry association and enterprise respectively represent the docking trade and communication." Zhang Xian said.

With 80 s ~ 90 s last century, the enterprise to avoid the export quota restrictions and consider the purpose of the foreign investment, the enterprise will be concentrating on southeast Asian countries mostly because of cost pressures. Rising labor costs, cotton difference between at home and abroad, weaken the market competitiveness of enterprises in our country. Zhang Xian interpretation said: "in the domestic production, only cotton prices per ton WuLiuQian yuan higher than abroad, depending on the value added per unit product revenue pressures. Some companies only for production to southeast Asia countries, on the one hand, no cotton import quotas, on the other hand also can take advantage of local raw materials."

Textile chamber of commerce was the key of the BIAC is located in the eastern Indian state of andhra pradesh, the state is the third largest cotton producer in India. Plenty of cotton supply make the costume city formed "fibre to the store" vertical integration system. From the point of basic salary, the park workers generally only about RMB 700 yuan a month. Even in Sri Lanka, slightly higher labor costs, the garment workers also however is equivalent to 800 yuan a month. Raw material and labor cost advantage makes the textile and garment industry in these countries favored by more and more foreign investors.

Zhang Xian said, from the point of production efficiency, southeast Asian countries than China, but integrated computation, domestic mid-range enterprises cost competitiveness must be inferior to southeast Asian countries. So, also can understand mid-range outward shift of the enterprise.

Production investment must adjust measures to local conditions

Cotton and Labour issues forced firms to consider "ran away", which country and arrival and testing the enterprise strategic vision and business intelligence. Zhang Xian pointed out that the industry now there are two forms of foreign investment: investment garment factory or mill. Clothing industry is labor-intensive industries, the investment is suitable for in Burma, Bangladesh. And investments for textile mills are generally capital model, from the Angle of production, you need to consider whether or not the local procurement of raw materials is convenient. "India is now prominent industrial advantage is cotton can be self-sufficient. By contrast, mostly need to import the raw materials. In Sri Lanka as Vietnam, Indonesia and other countries of the industrial chain in extension, its industrial advantage will be gradually reflected." Zhang Xian said.

Indian cloth LanDiKe garment city attractors are welcome Chinese entrepreneurs investigation and cooperation. Local companies confidently believe that over the next decade, India will likely take the textile clothing market share in China. Compared with other countries, the confidence comes from the local abundant Labour supply. Learned, BIAC garment city is one of the largest clothing enterprises by Sri Lanka cloth LanDiKe company investment construction and management of operation. Inspection process, Zhang Xi AnXinCun questions: why is this in Sri Lanka very competitive garment enterprises to invest in India? During then talk to the representatives in Sri Lanka, he learned the business more long term planning: "according to the controller introduces, at present, also began to appear labor tensions in Sri Lanka. Potential Labour supply in this regard, India more secure. We examine the BIAC garment city with more than a dozen companies, the number of employees 16000 people. Park on behalf of the said, if we can attract more enterprise to the investment, number of employees to expand a times no problem. And the area around the age of women aged 18 to 30 much more special, they are proud of the costume city work. In the park, the entire state of the workers is very comfortable. In contrast, our domestic factory, even can have four yuan a month, the young don't want to engaged in the textile industry, employee loyalty to the enterprise is generally lower than in southeast Asia."

Zhang Xian suggested that enterprise must, according to their own development plan to choose investment form, "garment factory input costs relatively low, mostly in the form of lease is given priority to, capital operation more flexible. And more investment in textile mills due to equipment, generally focus on long-term planning, also have higher requirements to the enterprise capital operation ability. But whatever the investment, there is a certain risk, such as the production management regulations, the foreign exchange regulations and labor law, and so on, these all need enterprise research seriously."

Outbound transfer thought-provoking

Previous investment case, such as excessive and red bean is accepted by the local society, truly through the overseas layout to maximize the interests of the enterprise after all minority. In the current situation, most of the overseas investment company is hoping to use the local advantages, hold the order. But in the tide of industry transfer, the enterprise choice rather than outward to the phenomenon of the mainland investment in the Midwest is really thought-provoking.

"In fact, from the emotional to the industry and its production status, companies don't necessarily want to 'go out', because there are many differences on culture and customs. It should be said that the best way is to transfer from the eastern to the central and western, our strength and competitive advantage of industry to keep for a period of time." Zhang Xian thinks, industry shift there are many inevitable factors, but cause enterprises "go outward", choose not to, in the west, and there are a lot of is so helpless, ", western companies in the same problems of rising labor costs. The western front-line workers, even if only 2000 ~ 3000 yuan a month also was much higher than the southeast Asian countries. In addition, the matching condition is unable to keep up with industry development, also affect the industry shift to middle and west. Early may docking effect is very good, but the field is far with description. And the local stability of preferential policies, employee loyalty, these are also the eastern enterprise issues of concern."

Zhang Xian said, the trend of enterprise outward transfer need to cause the attention of the industry, in the process, how to realize the healthy development of domestic industry, the industry need to joint efforts. As a trade services platform, textile chamber of commerce in the future will continue to provide enterprises with early operation consulting, field trips and leading enterprise. Through communication activities in the industry, sharing of "going out" of firsthand information.

 

The source "of Chinese textile net"

Edit: Emma