Home Facts trade

Zhejiang Textile Enterprise open processing factory in Southeast Asia

Zhejiang Textile Enterprise open processing factory in Southeast Asia

Write: Fuensanta [2011-05-20]

The statistic show that in 2005, Zhejiang textile export reach 10.91billion USD, increased by 23.7% while in January,2006, the textile export reach 103.8billion USD, increased by 18.63% with slow speed. In the same time, the information from Vietnam Trade Ministry Business Information Center show that during January-April, the export of fashion & textile reach 1.7billion USD, increased by 38.7%."Bengal worker's income is less twice than us." The general manager of Shoo-in Hanna Textile Manufacture Co.,Ltd-Xu Yuanting said;" The income of Bengal textile worker is less than 0.07USD/hour, the one in Vietnam is about RMB500Yuan, the one in Zhejiang is about 1000Yuan."

Obviously, the ever advantage of cheap labor force is disappearing. Zhejiang is a big textile province, but its textile industry is challenged by South-East Asia, India etc. Some Zhejiang enterprises have to transfer manufacture base. It is introduced that more and more enterprises begin to lend factory to search for cooperation in Vietnam and Cambodia.

The portfolio change in transpiration agency company also reflects this problem." Some enterprises would rather transport inland material to South-East Asia for taking advantage of South-East Asia's cheap labor force and no trade barrier."

The general manager of Zhejiang Wantong Trade Co.,Ltd Xuhui consider that in current circumstance, Zhejiang dealers should center on integrating inland distribution and overseas one into together and do not follow others blindness. If they want to march into international market, they must accumulate capital by basing themselves upon inland market and improve product grade. "Abandoning inland market means abandoning future."The chairman of Kaixiya Stock Co., Ltd-Wu Jinggeng said.This company also begins to pay attention to inland market. Its percent of inland sale account for 20% of total sale gradually while Inland distribution and brand become the important measure for its strategic change.