In recent years, trade and investment cooperation between China and ASEAN in the field of textiles and clothing has developed rapidly. China's ASEAN textile and apparel cooperation is highly complementary. China is the world's largest textile and apparel producer and exporter. It has a complete industrial chain in the world, complete categories of textile industry, high levels of processing facilities, advanced technology, and high cost performance. The needs of textile and apparel companies.
The textile and clothing industry is one of the important industries in the manufacturing industry of ASEAN countries such as Vietnam, Indonesia, Cambodia, Myanmar, Thailand, etc. It has advantages in labor costs and cotton prices, tariff preferences, and preferential policies to attract foreign investment. In recent years, many Chinese textile and apparel companies have invested and set up factories in ASEAN countries, which has promoted the international development of China's textile and apparel industry.
The textile and apparel industry is one of China's leading industries in actively promoting the construction of the “Belt and Road” initiative, and is also the first choice of the people ’s production industry in countries and regions along the “Belt and Road” to promote industrial development, create national wealth, and provide a large number of jobs. In the construction of the "Belt and Road", ASEAN is an important partner of China, and it is also one of the key areas for China's textile international capacity cooperation.
Vietnam is recognized as the world's third largest garment exporter, and textiles are one of Vietnam's key export products. In 2018, Vietnam's textile industry exported about 36.2 billion U.S. dollars, and imported raw materials and accessories reached 23.6 billion U.S. dollars, of which: about 1.28 billion U.S. dollars in imported fabrics, about 5.47 billion U.S. dollars in various textile industry accessories, 3 billion U.S. dollars in cotton, and about 100% in textile yarns. $ 2.419 billion. In the first nine months of this year, Vietnam's textile and apparel exports showed an upward trend, reaching US $ 24.8 billion, an increase of 10.4%.
Since 2019, Vietnam's cotton imports are expected to be 7.6 million bales driven by opportunities such as domestic textile production expansion, increased foreign investment, and CPTPP and the Vietnam-EU Free Trade Agreement. It is estimated that the total value of textile and apparel exports in 2019 will reach 40 billion US dollars, an increase of 14-15% over the previous year.
The apparel and textile industry used to be competitive in the export market and was even considered a rising industry in the 1990s. Since the WTO abolished textile quotas in 2005, the export performance of the Philippines has declined. Companies in the country's apparel and textile industry have also experienced many difficulties, including factory closures, downsizing, and substantial layoffs.
Chinese and ASEAN companies have a great deal of space and opportunities for complementary cooperation in the textile and apparel industry. In particular, Chinese companies can set up factories in ASEAN countries to sell products to third-party markets. Baixin Group, as a service provider for Southeast Asian enterprises, is committed to the registration, tax declaration, and investment matching of local enterprises in Southeast Asia. You can consult Baixin Group.
Seek the cooperation of local enterprises and strengthen the docking of industry chambers of commerce and associations. Learn more about the industry information of ASEAN countries and find partners of ASEAN countries;
Identify the establishment of Chinese textile and garment enterprise industrial parks in ASEAN countries to promote the entire industrial chain to go out and support development; carry out trade and investment cooperation with local enterprises in textile raw materials and auxiliary materials, machinery, dyes, auxiliaries, etc .; China's textile industry has a complete range of categories 3. The equipment is more advanced and the price and maintenance cost are lower, which is easier for ASEAN companies to accept. Chinese textile and garment machinery and equipment companies have entered ASEAN and cooperated with them to upgrade machinery and equipment to assist ASEAN countries to improve production efficiency.
Recently, China ’s textile and apparel industry trade and investment cooperation report with the five Mekong countries mentioned that the textile and apparel industry is a pillar industry shared by the countries of the Lancang and Mekong countries. point. The Lancang-Mekong Cooperation (hereinafter referred to as the "Lan-Mekong Cooperation") is a new type of subregional cooperation mechanism jointly initiated and constructed by China and Cambodia, Laos, Myanmar, Thailand, and Vietnam. According to the "3 + 5 + X cooperation framework" determined by the six governments, capacity cooperation is a priority cooperation and development area for the six countries in Lanmei.
In 2010, the China-ASEAN Free Trade Area was fully established. After the transition period, the tariffs on most goods exported by Vietnam, Laos, Cambodia and Myanmar to China have been reduced to zero, further promoting the textile industry chain between China and the five Mekong countries. Trade exchanges and cooperation. With the closer cooperation in the industrial chain and the active development of trade exchanges, the five Mekong countries have become increasingly important in China's textile industry export trade.
Thanks to the geographical proximity and the dual preferential conditions of tariffs in the China-ASEAN Free Trade Area, the five Mekong countries have become one of the most important import source regions for China's textile industry.
Yarn is China's most important textile and apparel product imported from the five Mekong countries.In 2018, the import value reached 2.47 billion U.S. dollars, accounting for 46.2% of China's total textile and apparel imports from the five Mekong countries, and accounting for China's total amount of yarn imports from the world. 30.4%.
Among them, cotton yarn imports amounted to US $ 2.18 billion, accounting for 88.2% of the yarn imports from the five Mekong countries, and 37.3% of China's global cotton yarn imports. Vietnam is the largest source of yarn imports among the five Mekong countries and the largest source country of Chinese yarn imports. Some of these yarns are products of Chinese-funded enterprises and are returned to China for further processing.
In 2018, China's yarn imports from Vietnam reached US $ 2.35 billion, accounting for 95.1% of yarn imports from the five Mekong countries, and cotton yarns from Vietnam accounted for 98.3% of the imports of the five Mekong countries.
Clothing is another major category of products imported by China from the five Mekong countries. In 2018, the import value was US $ 2.15 billion, accounting for 40.2% of China's total textile and apparel imports from the five Mekong countries. Knitted clothing imports were slightly more than woven clothing.
Vietnam is the largest import source country of the five Mekong countries and China's largest source of apparel import. In 2018, the import value reached 1.47 billion US dollars, accounting for 68.2% of the clothing import value from the five Mekong countries. Clothing imports from Cambodia and Thailand reached USD 400 million and USD 230 million, respectively, accounting for 18.1% and 10.7% of China's clothing imports from the five Mekong countries.
Apparel is also the fastest-growing Chinese import product from Lan Mae countries. Affected by the adjustment of international brand procurement layout, garment products produced by Lan Mae countries are increasingly entering the Chinese domestic market.
In 2018, China's clothing imports from the five Mekong countries increased by 93% from 2015, with an average annual growth rate of 24.5%, which is 18.1 percentage points higher than the average annual growth rate of China's global clothing imports.
Among them, the average annual growth rate of apparel imports from Cambodia, Vietnam and Laos exceeded 20%, reaching 26.2%, 25.8% and 21% respectively. In the first half of 2019, China imported a total of USD 1.04 billion in clothing from the five Mekong countries, a year-on-year increase of 16.1%, which is 13.9 percentage points higher than the growth rate of China's total clothing imports in the same period.
The current stage of the import and export trade structure reflects that China and the five Mekong countries have formed an industrial chain of "China's textile fabric supply-Mekong garment processing"; a considerable portion of Vietnam's yarn products have also entered China for later Weaving, dyeing and finishing have become an indispensable raw material supply for China's textile industry chain; some clothing products produced by the five Mekong countries have also entered the Chinese domestic market, providing Chinese residents with more quality and cheaper consumption options.
In recent years, the cooperation between China's textile equipment manufacturing industry and the textile industry of the five Mekong countries has become increasingly close. In the future, as the textile industry chain of the five Mekong countries develops towards fine and deep processing, the cooperation space with China's textile industry will also be more diversified.
