According to Nikkei Chinese network on January 3 reported that China's garment enterprises due to rising domestic labor costs, accelerating the production base will be transferred to the pace of Vietnam. Vietnam's labor costs nearly 60% cheaper than China, and geographical location adjacent to China, it became the main production base for the transfer of candidates. Although the two countries in the South China Sea on the issue of the existence of antagonism and other factors, but to the new "textile power" Vietnam production base to explore the exploration seems to continue.
Orders for the production of knitted sweaters and other knitwear enterprises in China will expand the South Vietnamese garment production. Headquartered in Huizhou City, Guangdong Province, the company will build a factory in Ho Chi Minh City in Vietnam in 2015 and start production. The second phase of the plant is scheduled to be completed in April 2017.
South spin the main supplier is operating clothing chain "UNIQLO" Japan's fast-selling company. From the fast sales of its orders accounted for more than 5 percent. In 2009, Vietnam and Japan signed the Economic Cooperation Agreement (EPA) into effect, in principle, Vietnam's textile exports to Japan will not be levied tariffs, which also contributed to the transfer of production. Nan Xuan also intends to explore other new Japanese corporate customers.
China's down jacket manufacturers and distributors Bosideng will also expand production in Southeast Asia. With the capital cooperation with ITOCHU, Bosideng began pilot production at the Vietnamese textile factory related to ITOCHU, and plans to further expand production according to production trends.
Bosideng Chief Financial Officer (CFO) Michael Run right in a telephone conference, said the order of the parties to achieve the trend of cross-border production system is enhanced, which became OEM (OEM) business lost some orders. Indicating that the purpose of the transfer of production is to reduce manufacturing costs.
China 's exports of apparel products in Japan, more than 20 trillion yen per year (1.18 trillion yuan), has been sit tight in Asia' s "textile power" status. But labor costs in China have doubled in five years. With the rapid increase in labor costs, from the commissioned by the OEM production of overseas orders for enterprises to reduce the cost of increasing pressure, Chinese enterprises have to discuss the transfer of low value-added goods production.