Domestic textile giants that have established long-term strategic partnerships with internationally renowned customers such as Burberry, Oxford, Armani, Gucci, Uniqlo, and Hong Kong United Industry have made another big move!
Annual output of approximately 60 million meters of high-grade woven fabrics
On the evening of March 30, Lu Thai Textile disclosed that its wholly-owned subsidiary Wanxiang Textile planned a total investment of approximately US$210 million in Tay Ninh Province, Vietnam, for the construction of a production base for fabric products such as woven and knitted fabrics. After the investment is completed, the achievable production The annual production capacity is approximately 60 million meters of high-grade woven fabrics.
As the world’s largest manufacturer of high-end yarn-dyed fabrics and a manufacturer of international first-line brand shirts, Lutai is a textile and apparel enterprise with comprehensive vertical production capabilities that integrates spinning, bleaching and dyeing, weaving, finishing, and garment making. Group, more than 50% of its products such as yarn-dyed fabrics, printed and dyed fabrics, and ready-made garments for shirts are sold to more than 60 countries and regions including the United States, the European Union, and Japan, and has established strategic cooperative relationships with well-known domestic and foreign brands. He does have the strength to expand his territory, but why is it Vietnam this time?
Southeast Asia diverts over 30% of processing orders
Since 2008, consumers have gradually discovered that the words “made in Vietnam” and “made in Bangladesh” are increasingly appearing on the labels of clothes and shoes purchased from H&M, ZARA, NIKE, and Wal-Mart. Behind the small label is that the entire Southeast Asia diverts more than 30% of China’s processing orders.
Indeed, throughout the development history of the textile industry, the industry has been migrating from areas with high production factor prices to areas with low prices. With rising labor prices and stricter environmental protection requirements in recent years, the garment sector at the bottom of the value chain has been deployed in Southeast Asia since 2012.
According to Lu Thai’s announcement, this investment is based on the company’s strategic development and external investment needs, efficiently integrating domestic and foreign superior resources, effectively avoiding the impact of potential trade barriers, and maximizing the group’s interests. It has decided to further invest in areas along the Belt and Road. invest.
It is not difficult to predict that for a long time in the future, it is inevitable that the price of textile and clothing will continue to rise – the textile and clothing manufacturing industry has to use overseas investment to absorb the pressure of various rising costs.
However, in the textile and clothing manufacturing supply chain, Made in China still ranks first in the world; but the manufacturing industry in Southeast Asia also has an absolute advantage. Today, when global demand is slowing down and fast fashion discount retailers are becoming popular, the “blood and sweat” behind fashion “Factory” cannot disappear.
At the same time, we have to face the reality that the rising textile industry of Southeast Asian countries is becoming the main competitor of Chinese textile enterprises. In the foreign trade situation where price advantages are gradually lost, domestic textile companies are also facing difficult challenges.
</p
