Expert Analysis: Enterprise Relocation Is Not Panic

With the pfer of international textile and apparel orders to China, the textile industry of our province has experienced a rapid expansion of production capacity.

But now a new trend is that many foreign companies have moved to Vietnam in pursuit of cost depressions.

However, Yin Guoxin, chairman of the morning breeze group and vice president of the China Textiles Import and Export Chamber of Commerce, believes that the Japanese market is still optimistic about China, and the textile and garment enterprises should not panic too much because of the temporary pfer of orders.

Vietnam's market grew very fast but its proportion was very small. Aida Nobuhito was the director of the Shanghai branch of fiber NEWS.

He said that the Japanese market is a very demanding market.

In recent years, the retail industry has been fiercely competitive, and the profits of Japanese businesses have dropped sharply.

In addition, we also pursue small batch, short delivery time and high quality.

With the increase of labor costs and raw material prices, these requirements are hard to satisfy.

Therefore, Japanese enterprises have invested in factories in Vietnam, India, Thailand and other countries in order to diversify their investment risks.

"China plus one" has become a trend in the Japanese industry.

He said that since the implementation of the strategy of "China plus one", Vietnam's market has been growing rapidly, but its share in the Japanese import market is still very small.

Imports of textiles and clothing from China account for 85%, while Vietnam accounts for only 3%.

China's comprehensive advantage is irreplaceable. Many Japanese companies say that no matter in Southeast Asia or elsewhere, it is difficult to compare with China in terms of capacity and industrial chain.

As Japan's mass market supply base, only China.

The first is the limited capacity of the industry.

The 80 million population of Vietnam is only comparable to that of Jiangsu, and it can not undertake the market pfer of all Japanese enterprises.

The second is the variety restrictions caused by technical factors. Vietnam's yarn and fabric production is still lagging behind, and it does not have the production capacity from fabric to sewing processing. At present, it can only produce products that are not very popular, such as uniforms, work clothes, men's suits, and so on.

Yin Guoxin said that China's advantage is not simply a production cost, but a comprehensive cost advantage supported by technology and industrial chain.

After 30 years of efforts, China has formed a complete industrial chain from spinning, weaving, printing and dyeing to clothing, with the highest degree of marketization and the most complete matching.

Moreover, the price is determined by the supply and demand relationship. If the buyers pursuing low prices are pouring into Vietnam, the purchase volume will be large and the price will go up naturally.

The adjustment of the world division of labor system brings new opportunities. According to the Japan trade promotion agency survey, the "high value-added production capacity" and "research and development capability" of Japanese enterprises have been on the rise.

In the recent years, the textile and garment industry is facing a crisis. The added value of products is low, and hard money is getting worse and worse.

We should use the buffer period to "improve our health" and try to catch more industrial chains and provide value-added services.

First of all, in the production process, through more scientific and rigorous hours, process management, about 30% of the cost savings space.

Secondly, apart from sewing, it also provides fabric, accessories and refurbishing styles for brands.

Not only can OEM profits grow a lot, but also irreplaceable will be stronger.

Third, we need to provide in-depth services for brands, such as storage and pportation, logistics and distribution.