The Low Cost Advantage Of Textile And Clothing In Quanzhou, Fujian Is Highlighted
Low cost advantage highlights
Last year, Fujian Fengda Light Textile opened one in Cambodia clothing The delegation paid a special visit to the factory. At present, there are 1000 workers in this factory. The orders are sufficient and the development is good. Lu Qijian, Secretary General of the Cambodian Garment Manufacturers Association, said that there are about 500 garment factories and shoes Among the 400 export-oriented enterprises of the Chamber of Commerce, there are about 240 Chinese invested enterprises.
Cambodia has obvious advantages in low labor cost. Currently, Cambodia spin The workers in the garment factory are 80 dollars per month. In order to encourage workers to produce, some garment factories adopt the reward method of "time+piece". In addition to completing the quota production within the specified 8 hours of working time, the excess part will be rewarded additionally. In addition, workers can also receive full attendance awards, transportation subsidies, etc. In general, the average monthly wage of Cambodian workers is about 120~130 dollars, equivalent to about 800 yuan. In contrast, Quanzhou garment workers are currently earning more than 3500 yuan a month. Based on the calculation of Fengda's factory in Cambodia, more than 20 million yuan can be saved in one year's wages alone. In addition, the export of Cambodia to the EU is also related to tax preferences. If a pair of trousers produced in China costs US $10 and exported to Italy, Italy will impose 12.5% tariff. The pants produced in Cambodia, which are also exported to Italy, do not collect tariffs, and the cost can be reduced a lot.
In Bangladesh, the textile and clothing industry is the pillar industry of the national economy. Bangladesh has nearly 5000 textile and garment factories, with nearly 5 million employees, creating an annual export volume of 19 billion US dollars, accounting for 80% of the country's total foreign trade exports and 10% of the country's GDP. Compared with Cambodia, Bangladesh has more advantages in labor costs. In 2010, the Bangladesh government will raise the minimum monthly wage by 80% to the current level of about 38 dollars. The electric charge is converted into RMB 0.55 per kilowatt hour and the water charge is 0.2 per cubic meter. The cost is significantly lower.
Highly skilled workers
"The garment industry workers in Bangladesh are highly skilled." Lin Hongjun said that the quality of the products seen by the delegation from several garment factories visited was no worse than that of China, and many of the orders made were from international brands. Each garment factory has 2000~3000 sewing machines, and the monthly shirt production is up to several million pieces. In recent years, such as walmart h&m、zara、 More and more orders of large supermarkets such as Carrefour and low-end products of fast fashion are transferred to Bangladesh. More and more Fujian and Quanzhou businessmen are attracted to Bangladesh's abundant cheap labor, increasingly mature labor resources and the multiple advantages of tax exemption for textile and clothing products exported to many countries. Lidecheng Garment Co., Ltd., founded by Quanshang Zhuang Lifeng in 1995, has become the largest Chinese funded garment company in the country and the "leader" in the garment industry. It is reported that the output value of Lidecheng is expected to reach 170 million dollars this year, accounting for 2% of the country's total clothing export value. Mainly produce underwear, children's clothing and sports Clothes & Accessories And also OEM for European and American brands such as ck. Zhuang Lifeng shared his successful experience with Quanshang "Zacuo People". He believed that Li Decheng employed more than 10000 employees in Meng, and the company's current production order has been scheduled to 2014. Orders are sufficient, labor resources are abundant and costs are low. Exports to Europe and the United States are basically duty-free. Lidecheng's garment production and export profits have remained at 20% for many years, supporting its healthy development, integrating the industrial chain and supply chain in cotton, spinning, fabric, clothing, brand and marketing, and realizing resource allocation worldwide. "The secret of Lidecheng's success is that its production and staff are in Bangladesh, R&D and marketing are in Europe and America, and its brand and promotion are in Germany and Australia," said Zhuang Lifeng.
Countdown to "going out"
After further investigation and comparison of several countries in Southeast Asia and South Asia, Cai Shulong, Chairman of Zhuolong International, intends to set up factories in Cambodia and Bangladesh. During this visit, he further explored the clothing industry of the two countries, and found that there were many local enterprises whose operators were in their 60s and 70s. Running clothing factories was a hard job, and no one was willing to take over. They were facing difficulties in sustainable operation. "Our company's business scope has expanded from underwear to a full range of clothing, so we can negotiate with many local projects." Cai Shulong believes that the acquisition of local factories, including the purchase of factory sales, is not a transfer of local factory capacity in Quanzhou, but a further expansion of the enterprise scale and acceleration of enterprise internationalization. Dragon International is expected to launch the acquisition plan of garment factories in Cambodia and Bangladesh in July this year.
The boss of the garment factory of the delegation estimated that the comprehensive cost could be reduced by 5%~8% when setting up factories in Southeast Asia. At the same time, the local export policy and currency value were more attractive to enterprises. In China, 12.5% import tax will be levied on a pair of pants that cost $10 and are exported to Italy. Considering the export tax burden and the fact that the exchange rate is not continuously appreciating against the US dollar, the profit of the enterprise can be increased by about 20%.
The words of President Lin of the Cambodian Haitan Garment Co., Ltd. made Zhao Jianhe and the chiefs of the delegation excited. "As long as you are willing to give your entrepreneurial passion 20 years ago to invest in Southeast Asia, you can also succeed, let alone you are more experienced than that year." Several bosses of Jinjiang and Shishi suggested contacting more textile and clothing enterprises and textile machinery enterprises, Fujian Merchants Overseas Investment Co., Ltd. was set up as a joint stock company to quickly enter Southeast Asian countries. First, offices were set up to look for projects and markets, and to be responsible for negotiations, evaluation, preparation and other early operations. Going out to invest overseas, Fujian businessmen who love to fight, dare to win, and dare to be the first will start another chapter, "leaving the production chain of high added value and high-end products in Shishi, and the way of operating by means of small profits and quick turnover can be completely transferred." Lin Hongjun said that Fucheng, as a well-known sewing equipment provider and information software service provider in the province, I am willing to go to Bangladesh with you to create a new world.
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