Jiangsu province textile & fashion overseas process item with biggest investment "Xinlan (Cambodia) Garment Co., Ltd" is authorized by Commerce Ministry. The main investor Jiangsu AB group Co.,Ltd invest total equipment, material and part capital ,total $16.5million USD to establish overseas process & trade enterprise in Phnom Penh of Cambodia and export inland material to Cambodia who distribute the processed products to occident market.
"Our factory in Cambodia is put it into production just now, which can solve quota problem and evade trade barrier", secretary of Jiangsu AB Group Co., Ltd said.
He shows that China underwear enterprises with slender profit can not endure the added quota cost brought by the restriction of China underwear by occident countries. To private enterprises with deficient quota, "go out" is one of efficient means to solve problem. ,
"America importers is unwilling to share the added quota cost with us in common, to keep previous price advantage, we turn to invest in the form of sole-stock. The factory is rented all right have been put into production." said Sun secretary:"The cost of labor force in Cambodia is similar with inland, but craftwork degree is not as good as China worker. Considering sorts of risks in investment and the shortage of investment capital of nearly RMB 1 billion Yuan, we plan to retreat, after all, it is rarely to build factory at overseas successfully. " It is known that the average price of cotton & synthetic fiber underwear imported from US is $15.9/dozen while the one for China cotton & synthetic fiber underwear is $15.9/dozen, US importer chose cheap product can not accept this price. The statistic from US Commerce Ministry Textile Import & Export Department show that in January of 2006, the export of China s cotton & synthetic fiber underwear is decreased by 79.5% while the import of India cotton & synthetic fiber underwear increase greatly, the main supply countries increase most is Cambodia whose import is increased by 818.4%.
The vice-Chairman of China Chamber of Commerce for textile import & export Cao Xinyu show that major China textile enterprises is small-middle scale enterprises who have no enough qualification to go to overseas for conduct big-scale investment.
