The new trend of China's textile and industry: the global allocation of resources to countries such as Vietnam

- Mar 05, 2019-

Cao jiachang, President of the China chamber of commerce for the import and export of textiles, said on the sidelines of the 29th east China import and export fair on March 1 that China's textile and garment industry is accelerating its globalization strategy.

Cao jiachang told an interesting phenomenon: at present, China's textile and garment export share of the international market declined slightly, but there is no need to worry.

It can be seen from the data: in the first 11 months of last year, China's textile and apparel products accounted for 36% of the import market share of the United States, down 0.4 percentage points from the same period of 2017, while Vietnam's share was 10.6%, up 0.2 percentage points year on year.For the whole of last year, China's share of eu import market was 33%, down 1 percentage point year-on-year, while Bangladesh's share was 14.3%, up 0.6 percentage point year-on-year.For the whole of last year, China's share of Japan's import market was 58 per cent, down 3 percentage points year-on-year, while Vietnam's was 12.6 per cent, up 1.4 percentage points year-on-year.

China's textile and clothing market share in the United States, Europe and Japan in the three markets have produced a small decline, but do not need to worry about the reason?In fact, most of the increase in Vietnam, Bangladesh and other countries is the share of exports generated by Chinese companies investing overseas or building factories abroad, cao said.

Cao jiachang said that in order to find the global value chain depression and adapt to the change of international market order demand, China's textile and garment industry is now striding forward the globalization strategic layout.Its mode mainly includes overseas investment and setting up factories, seeking strategic partners, opening branches to realize product display and overseas order receiving, and accelerating the construction of overseas warehouses, etc., which are gradually presented in the whole production supply chain with the new attitude of organizers and managers.

In 2018, China's textile and garment exports totaled us $276.73 billion, up 3.7 percent year-on-year, while imports totaled us $26.14 billion, up 6.4 percent year-on-year.In terms of sub-items, China's textile exports in 2018 reached 119.1 billion us dollars, up by 8.1 percent year-on-year.Clothing exports totaled us $157.63 billion, up 0.3 percent year-on-year.

It can be seen that China's textile and apparel exports show a trend of export growth of upstream products and export slowdown of downstream products.This, says Mr Cao, is the result of a shift in China's garment manufacturing and a rise in demand for Chinese yarn and fabrics from neighbouring low-cost garment producers because of incomplete industrial chains.China's yarn and fabric exports to Vietnam and Bangladesh surged 19.3 percent and 21.5 percent respectively in 2018, according to statistics.

Cao jiachang expresses, spin garment industry should realize the many difficulties that current industry development faces adequately.In particular, sino-us trade frictions will have a profound impact on the future development of the industry."Although the main export products such as garments and home textiles are not included in the dispute products at present, in order to avoid risks, American customers have explicitly asked suppliers to take precautions and gradually shift production, especially for long orders and forward orders with low delivery speed."Cao jiachang said.

In 2018, China's textile and garment exports to the eu, the us and Japan, three traditional markets, all maintained growth, with growth rates of 1.5%, 8% and 2.7% respectively.In addition, the export to countries along the "One Belt And One Road" has maintained growth for three consecutive years, with the growth rate of 5.3% in 2018. The export to asean has increased by 11.7%, which is the fastest growth among all major markets.

Cao jiachang expresses, spin dress industry still should focus on development of domestic and foreign trade unifies.With the reform of the supply side and the consumption side of the country, as well as the increasing maturity and steady improvement of the domestic consumption market, more and more traditional foreign trade enterprises begin to undertake some domestic high-quality orders.Make use of the e-commerce platform to become an excellent supplier of the domestic consumer market, and vigorously develop the domestic market.