Textile Producers Turn To Vietnam

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Last week, the people's Committee of Da Nang, Vietnam agreed to the investment license of four clothing companies of Japan's Sen group, Dashi, nyazaki, Inoue Ribbon company and Fukui Denka Koygo.

The total investment cost of these four projects is US $15 million, which will produce clothing on the 5 hectares of land in the Hoa Khanh Industrial Park.

Sam group provides textile components for Adidas, Nike, GUCCI and D&G brands.

Sam group's move is part of a gradual plan to shift clothing and textile production from China to Vietnam. The Vietnam textile and Apparel Association predicts that this trend will continue in the future.

As China's labor costs increased by 15-20% in several years in the country, textile and clothing companies began to migrate to Vietnam.

At present, the average monthly salary of a Chinese garment worker is 3000 yuan (538.4 US dollars), while Vietnam's textile worker's salary is 128.2 dollars.

The representative of Vietnam textile and Garment Association explained that in China, foreign clothing and textile enterprises encountered 10% export tariffs when they exported their products to Japan.

Vietnam, on the other hand, does not levy any tariffs on products exported to Japan.

In addition, China is forcing enterprises to effectively consume energy and keep consistent with the Chinese government's strategy of using renewable technologies to achieve economic development.

The cost of electricity in China is two times that of Vietnam.

Vietnam textile and Apparel Association also said that most foreign investment will be injected into garment factories with potential for quick recovery of funds rather than investment in dyeing and textile industry.