Textile players in China are increasing looking at neighbouring countries to set-up their manufacturing units and Vietnam is emerging to be its most favourite destination. The reasons behind this are increase production and low labour costs in the country. And after the recent conclusion of Trans-Pacific Partnership (TPP) agreement, apparels produced in the Southeast Asian country for the United States market will be tariff-free.
One of the textile manufacturing firms of China, Huafang Co. – a textile business in Shandong Province, for instance, is planning to establish its first overseas unit, which will be engaged in producing high-end fabrics factory, in Vietnam with a $110 million investment. Around 150 million yuan will be invested into a research and development centre to explore new technologies covering the whole gamut of industry chain, including cotton, spinning, weaving and dyeing.
Recently, China-based textile manufacturer Keer too set up a production facility in Lancaster County, USA. Keer’s mill spins yarn from raw cotton to sell to textile makers across Asia. But it still spins much of its yarn in China, importing the raw cotton from America. Luen Thai International Group, Hong Kong’s largest clothing company, Sanshui Jialida Textile Co, from Guangdong Province, and Vietnam’s Vinatex Co. are also contemplating to build a textile industrial park.
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