New Textile Challenge in China? Vietnam's accession to CPTPP involves over 500 million people!

CPTPP Effective Vietnam or Become the Biggest Winner
The Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP) entered into force in Japan, Canada, Australia, New Zealand, Mexico and Singapore on December 30, 2018, and in Vietnam on January 14, 2019. In addition, Brunei, Chile, Malaysia and Peru will begin to implement the agreement 60 days after the approval process has been completed.
It is reported that CPTPP countries account for 13% of global gross domestic product (GDP), involving over 500 million people. After the CPTPP came into force, Japanese officials told the media that Thailand and Britain could join the negotiations on the agreement in 2019 and become new signatories to the agreement.
CPTPP
The Comprehensive Progressive Trans-Pacific Partnership (CPTPP) is the new name of the United States after its withdrawal from the Trans-Pacific Partnership.
On November 11, 2017, 11 Asia-Pacific countries that initiated the TPP negotiations jointly issued a joint statement announcing that the “ has reached a fundamental and important consensus on the new agreement-rdquo; and decided to rename it as “ the comprehensive progress agreement of the Trans-Pacific Partnership-rdquo; (CPTPP).
On March 8, 2018, representatives of 11 countries participating in the negotiation of the Trans-Pacific Partnership Agreement for Comprehensive and Progress (CPTPP) held a signing ceremony in Santiago, Chile.
On December 30, 2018, the Trans-Pacific Partnership Agreement on Comprehensive and Progress entered into force.
The impact of CPTPP on Vietnam's economy depends largely on Vietnam's ability to seize opportunities and overcome challenges. CPTPP gradually abolished 98% of tariffs on agricultural and industrial products, relaxed investment regulations and strengthened the protection of intellectual property rights. Joining CPTPP brings Vietnam an unprecedented market, & ldquo; Vietnam Made & rdquo; or the biggest winner.
Vietnam's accession to CPTPP is a concrete measure taken by the Central Committee of the Vietnamese Communist Party and the state to implement the policy of integration into international integration, which confirms Vietnam's role and geopolitical status in Southeast Asia, the Asia-Pacific region and the world. Being a CPTPP member is of great significance for Vietnam to utilize external resources and integrate domestic advantages, and effectively serve domestic construction, national defense and development.
According to the calculation of the National Socio-Economic Information and Forecasting Center of the Ministry of Planning and Investment of Vietnam, by 2035, CPTPP will increase Vietnam's GDP by 1.7 billion US dollars and its exports by more than 4 billion US dollars, increasing by 1.32% and 4..04%. The agreement will open up new opportunities for Vietnam's trade and create more momentum for promoting domestic economic restructuring and improving the business environment.
China's textile and apparel industry deserves vigilance
The people of Vietnam are not only hard-working, but also full of vitality. At present, there are about 30 million young and middle-aged people in Vietnam. The trend of population aging in China is obvious, while the population of Vietnam is relatively young. Vietnam will maintain this advantage for a considerable period of time, thus enhancing the competitiveness of the labor force.
In the textile industry, now & quot; Made in Vietnam & quot; is quietly occupying & quot; Made in China & quot; market.
In 2009, Nike's Vietnam Generation Factory completed a comprehensive surpass of China's production capacity.
In 2012, Adidas's last Chinese mainland factory closed in Suzhou.
In April 2018, Uniqlo announced that China's production capacity will be transferred to Southeast Asia, and Vietnam will bear 40% of its total production.
Not only foreign brands, but also many private enterprises of shoes, hats and clothing originally rooted in Guangdong and Fujian Province of China have set off a wave of relocation of factories to Vietnam under the attraction of cheap labor. Chinese textile and apparel enterprises have also accelerated the pace of transfer to Vietnam. Bosten, the manufacturer and distributor of Chinese down jackets, will also expand production in Southeast Asia. With the help of capital cooperation with Itochu, Japan, Bosten began to conduct pilot production in Vietnamese textile factories related to Itochu, and plans to further expand production according to production trends.
The reasons for the transfer are not complicated, because the labor costs to Vietnam can be nearly 50% cheaper. The average monthly wage of Vietnamese production workers is $216. Moreover, according to World Bank data, Vietnam has one of the largest labor forces in Southeast Asia, with 57.5 million workers, compared with 15.4 million in Malaysia and 44.6 million in the Philippines.
Against the background of Sino-US trade frictions, China's foreign trade orders are struggling, while Vietnam is making great strides, which can not but arouse industry vigilance.
Vietnam leaps up to the third largest textile and apparel exporter in the world
Vietnamese textile and Apparel Group General Manager Li Jinchang said at a press conference that Vietnamese textile and apparel exports in 2018 amounted to $3.6 billion, an increase of 16% over the same period last year. The figures show that Vietnam's textile and apparel industry has not only achieved growth in quantity, but also in quality. It is noteworthy that Vietnam has become the world's third largest exporter of textiles and clothing, after China and India.
Li Jinchang said that the breakthrough factor in promoting textile and apparel exports in 2018 was the trend of the world textile and apparel production base shifting from China to Vietnam. At the same time, large foreign companies have also seen better investment opportunities in Vietnam than in India and Bangladesh.
Based on the above results, Li Jinchang said that the results achieved in 2018 have been brought about by the implementation of various strategies for many years, including investing in international production facilities, adopting green technology, caring for workers, and thus winning customers'preferences.
2.5 billion construction & ldquo; all-round fast reverse plant & rdquo;
& There are two ways for Chinese enterprises to become bigger and stronger: one is to make use of the advantages of China's 1.4 billion people to upgrade their industries in the process of keeping up with consumption upgrading. The other is & lsquo; going out & rsquo; laying out the global market & rdquo;. Sun Weiting, known for his prudent and prudent investment, said: Vietnam is the "ldquo" that Chinese textile and apparel enterprises have to lay out; the "bridgehead" along the way.
According to the announcement of Huafu Fashion, the company intends to invest in new yarn projects through its subsidiary Huafu Vietnam. The project is the first phase of the company's planned 1 million spindles new yarn project, with a capacity of 500,000 spindles and a total investment of 2.5 billion RMB. The investment source is the company's self-financing.
Huafu has been working in Vietnam for four years. In 2013, Huafu set up a subsidiary company in Longan Province, which became the largest foreign-invested enterprise in Longan. The company also has its first overseas production base. Up to now, Huafu Vietnam has the leading dyeing and spinning equipment in the industry. It has built 280,000 spindle spinning capacity, dyeing capacity of 20,000 tons, R&D center of 2000 square meters, supporting production and living facilities of 110,000 square meters.
A new journey will begin immediately. As the world's largest new yarn manufacturer and supplier, Sun Weiting said that Huafu positioned Vietnam as & ldquo; Southeast Asia omnipotent rapid response & rdquo; base, close to major international customers, to produce standardized products. Compared with domestic, Vietnam's local order delivery period is shortened by 12 days, and Bangladesh, Hong Kong and South China's orders are expected to be shortened by 2-4 days. Competitive advantages can be achieved through quality differentiation, product differentiation and cost differentiation.
At present, Huafu's five production bases in Zhejiang, Yangtze, Huanghuai, Xinjiang and Vietnam have their own emphasis, among which the trend of capacity transfer to Xinjiang and Vietnam is obvious. In the future, Zhejiang will be positioned as China's & ldquo; Italy & rdquo; & ldquo; the capital of fashion design & rdquo; & ldquo; established by Huafu in Shangyu, Zhejiang Province; network chain headquarters & rdquo; a demonstration base of fashion industry; by the end of 2018, the company's 1 million spindle-dyed textile production capacity in Aksu, Xinjiang, China's high-quality long-staple cotton production base, will be built and put into production one after another, with domestic consumption upgrading and Central Asia, Europe. Continental export market.
As for the source of self-financing RMB 2.5 billion recently, Sun Weiting said that we could consider raising funds from Vietnamese companies'own funds and overseas financing, and not exclude domestic equity financing. In view of the financing liabilities of private enterprises, which are generally concerned by the market, the equity of listed companies held by Huafu Holdings is not pledged, and the debt ratios of listed companies and groups are maintained between 50% and 60%.% Health level of manufacturing industry.
Earlier, Sun Weiting said that the company's capacity expansion & ldquo; no upper limit & rdquo;. Data show that as of the first half of 2018, Huafu Fashion's production capacity reached 1.88 million ingots, up 12% from the same period in 2017.57%, the overall production capacity is expected to continue to increase to 2 million ingots.
In the past forty years of reform and opening up, the industrial zone mode has become the soil that breeds the rapid development of Chinese enterprises. Nowadays, overseas industrial parks are already an important part of &ldquo, along the road &rdquo, and many Southeast Asian countries have begun to use industrial park mode to try to drive their own industrial development.