Chinese textile producers turn to ASEAN region


The rise of the textile industry in South East Asia is bringing challenges – as well as providing opportunities – to Chinese producers.

As textile production is a labour-intense industry, the rise of labour costs in China has largely impaired the competitiveness of the county’s textile sector over the past decade.

Salaries in the Chinese manufacturing industry grew at an average annual growth rate (AAGR) of 11.1% from RMB9,891 (US$1,620) in 2001 to RMB30,916 (US$5,063) in 2010, according to Jin Sanlin, a researcher at the Development and Research Center at China’s State Council.

Salaries continued a double-digit AAGR from 2011 to 2013. Considering the impact of the renmimbi revaluation, average labour costs in China’s manufacturing industry has grown more than fivefold from 2001 to 2013.

These rising labour costs have increased the prices of Chinese textiles. On the other hand, South East Asian producers remain relatively low labour cost, bringing severe challenges to the Chinese textile industry.

For the full story, see the March 2014 edition of Textiles South East Asia. Not a subscriber? Subscribe HERE