Chinese textile firms expanding overseas


Textile firms of China are expanding overseas and Vietnam is becoming the favourite destination to set up new facilities for textile manufacturers of China. The reasons behind the shift are increase production and labour costs in the country. Another reason is that the apparels produced in the Southeast Asian country for the United States market will be tariff-free post the last month’s Trans-Pacific Partnership agreement.

One of the textile manufacturing firms of China, Huafang Co. – a textile business in Shandong Province, is planning to set up its first overseas unit, which will be engaged in producing high-end fabrics factory, in Vietnam with a US $ 110 million investment. Around 150 million yuan will be invested into a research and development centre to explore new technologies covering the whole gamut of industry chain, including cotton, spinning, weaving and dyeing.

Recently, China-based textile manufacturer Keer also set up its facility in Lancaster County, USA and reported that the cost of land is reasonable there and even the workers are ready to get trained at nominal wages. Keer’s mill spins yarn from raw cotton to sell to textile makers across Asia. But it still spins much of its yarn in China, importing the raw cotton from America. Zhu Shanqing, Chairman of the company said that Keer has moved to the US because of land, incentives, workers and best suited business environment here, as in China, yarn manufacturing sector is losing money.

Luen Thai International Group, which is Hong Kong’s largest clothing company, Sanshui Jialida TextileCo, based in Guangdong Province, and Vietnam’s Vinatex Co. are planning to establish a textile industrial park.