A Regional Express: "Southeast Asian Manufacturing" Blooms, Enterprises Harvest Orders And Markets.

Although the share of China's textile and apparel industry has declined in the international market, it does not mean that the scale of Chinese business has declined. In fact, many factories in Southeast Asia are Chinese enterprises.

On the first day of March, Li Liqiang and his colleagues from Dongguan flew to Shanghai to hang up an early banner at the twenty-ninth China East China Import and Export Fair (hereinafter referred to as "China Fair").

The capitalized red English word is very conspicuous: WE "MADEINMYANMAR" (we are "made in Burma").

Li Liqiang is the business manager of Dongguan Chaofa leather products Co., Ltd.

He told the first financial reporter that this is the first time that the company has participated in the China Fair. The aim is to find new customers and promote the brand of the company and the advantage of having factories in Burma.

In fact, Li Liqiang's company just built a factory in Burma last year, leaving the Southeast Asian successors.

In recent years, with the high labor cost and recruitment difficulties, Southeast Asia has become the choice of many labor-intensive manufacturing enterprises.

As the first exhibition of foreign trade, the Chinese trade fair, which opens in March 1st, is called "barometer" of China's foreign trade.

At the current China Fair, no matter whether to build factories in Southeast Asia, or to develop new products and improve the technological content of products, more and more manufacturing and foreign trade enterprises have seen signs of market warming, and have begun to take the initiative to attack.

Southeast Asian exploration and construction

Cao Jiachang, President of the China Textiles Import and Export Chamber of Commerce, said at the current forum of the China trade fair that with the change of international procurement mode, the capacity of the textile industry is accelerating to pfer to Southeast Asia.

According to data provided by Cao Jiachang, in 2018, China's textile exports amounted to 119 billion 100 million US dollars, an increase of 8.1% over the same period last year, and clothing exports stood at 157 billion 630 million US dollars, up 0.3% from the same period last year.

He believes that the main reason for the growth of upstream exports and the slowdown in exports of downstream products is that China's garment manufacturing industry has shifted to the surrounding areas, but the low cost garment producing countries around the world have increased the demand for Chinese yarn and fabrics due to incomplete industrial chains.

In 2018, China's exports of yarn and fabric to Vietnam and Bangladesh surged by 19.3% and 21.5% respectively.

Another data is that China's textile exports account for a slight decline in international market share.

In the first 11 months of 2018, China's textile and apparel products accounted for 36% of the US import market, 0.4 percentage points lower than the same period in 2017, while Vietnam's share was 10.6%, an increase of 0.2 percentage points over the same period last year. Last year, China accounted for 33% of the EU's import market share, 1 percentage points lower than the same period last year, while Bangladesh's share was 14.3%, an increase of 0.6 percentage points over the same period last year.

Cao Jiachang suggested that although the share of China's textile and garment industry has declined in the international market, it does not mean that the scale of Chinese business has declined. In fact, many factories in Southeast Asia are Chinese enterprises.

Because 70% to 80% of the orders are for the US market, in order to reduce the influence of customs duties and keep them and increase orders, Li Li's company resolutely decided to build a factory in Burma last year, and completed its first phase construction in only 3 months, with 600 workers.

According to the plan, the capacity of the Burma plant is estimated to be between 15 million and 16 million US dollars, accounting for about half of the total capacity of the company and the size of the personnel can reach 2000.

Taking into account the uncertainty of the foreign trade situation, Li Liqiang said some customers were reluctant to place orders for Chinese factories.

The timely operation of factories in Burma allowed Li Liqiang to get a lot of money. "Orders received after the spring of this year have been ready for 7~8 months."

Li Liqiang said that in the positive response to the market, the company's orders in recent years have maintained a steady growth.

Factories in Dongguan and Sichuan continue to work, and the newly established manufacturing base in Burma will make the company's next revenue grow faster.

Orient International Limited by Share Ltd also set up a knitted garment factory in Kampuchea.

Since 2018, orders for factories in Kampuchea have been increasing. It is said that the plant has been fully loaded at present.

However, the Anhui garment import and export Limited by Share Ltd, which built 800 artificial factories in Kampuchea 5 years ago, is making other plans.

"The Kampuchea factory is going to be pferred to others."

Meng Zhuo, the Japanese manager of the company, told the first financial reporter that due to the local business environment and work efficiency, the effect of his own factory building is not necessarily better than finding local factory OEM cooperation.

In the tide of Southeast Asia, some enterprises chose to abandon Kampuchea and fight for Burma, Vietnam and Indonesia.

Improving technology content and ensuring orders

For Dai Guoda, President of Shanghai world import and Export Co., Ltd., which manufactures and exports professional gloves, it is not necessary to build factories in Southeast Asia.

In 2014, Dai Guo Da, who made more than 10 years of rubber glove manufacturing and foreign trade business, moved his factory from Shanghai to Jiangsu, Yancheng and Dongtai.

"We will not consider building factories in Southeast Asia for the time being.

As long as automation is improved and there is no need to go to Southeast Asia, it may be unacceptable to go out. "

He told the first financial reporter that this year and last year, the factory invested tens of millions of new production lines 3, equivalent to an increase of nearly 30% capacity to meet the sustained expansion of market demand.

In addition to improving automation, Dai Guo will invest about 10% of its profits every year to develop products and technologies that people do not have.

Degradable acrylonitrile butadiene rubber gloves, known as "the world's most lightweight" protective gloves, both low temperature and oil resistant rubber gloves, can be regarded as the highlight of his own brand WonderGrip (Chinese name "duer").

The export market of WonderGrip products is mainly in Japan and Europe.

"The European market is breaking out and is growing faster every year."

Dai Guoda said that the order has now been released to 5~6 months this year, and this year's goal is to increase orders by at least 30%.

As an enterprise engaged in the production of special function protective gloves and ultra-high strength and high modulus polyethylene fiber, Zhejiang Kang long Da special protection Polytron Technologies Inc has also invested heavily in R & D in recent years.

Founded in 2015, Zhejiang Kang long Da gloves Research Institute is the first provincial-level Private Enterprise Research Institute in China.

At present, the company has 53 effective patents, including 8 invention patents, most of which have been industrialized.

Like Dai Guo Da, Zhejiang dada household products Co., Ltd. also chose to keep manufacturing in China.

Zheng Yunqing, manager of the foreign trade department of the company, told the first financial reporter that the domestic policy environment is better than foreign countries, and that the risk of going abroad to build factories should be considered.

So even though they visited India and Vietnam, they didn't make it in the end.

Improving automation level and strengthening new product design and R & D capability is also a way for Zheng Yunqing to deal with risks in the global market.

The company mainly displayed a 30% inch waterproof absorbent bathroom mat with a high water absorpting rate of more than that of the general fiber products.

According to Zheng Yunqing, the new technology has been developed for about 2 years, and now 95% of the company's exports are this technology product, which quickly replaced the original carpet products and kept export orders stable.

Since the beginning of spring this year, Zheng Yunqing has also harvested at least 10% orders over the same period last year, and expects to achieve 160 million yuan in revenue this year.

60% of Meng Zhuo's companies are exported to the United States.

His work group is paying attention to the discussion of Sino US trade friction.

The company's performance in 2018 rose to 370 million US dollars (about 2 billion 480 million yuan), or nearly 16%.

The growth of performance is closely related to the recovery of the US economy and the "grab the bill" at the end of the year.

Another important driving force is the power of the electronic business platform.

"Early last year, the company started to set up an e-commerce department for Amazon platform, focusing on the export of e-commerce through the Amazon platform."

Meng Zhuo said that although the proportion of electricity providers is not high, but the growth rate is very fast.

At the current China Fair, there are still many new products and technologies brought by Chinese exhibitors.

For example, Jiangsu Czech Yang Polytron Technologies Inc displays intelligent sun clothes machines that can automatically adjust the lifting height according to the sun's rays to ensure that clothes have longer sunshine hours; Shandong Ying Ke environmental regeneration Tiomin Resources Inc has developed "pformation" technology, which can efficiently recycle recycled PS foam plastics, and produce artwork frames, frames and other artworks. Shandong dragon Fu ring can be a more intimate and breathable polylactic acid expanded fiber from corn.

In March 4th, the twenty-ninth China Fair ended.

Shi Chen, deputy director of the Shanghai Municipal Commerce Commission's foreign trade development division, said that the 14 trading groups of the China Fair have organized more than 4000 enterprises to participate in the exhibition, exhibiting a slight increase in scale and attendance.

The volume of export turnover was basically the same as the previous one.

Statistics show that the top 10 countries or regions are Japan, South Korea, the United States, Britain, France, China, Hongkong, Germany, Italy, Canada and Russia.