Where Made-in-China Textiles Are Emigrating
Textile Industry News Article Posted
January 19, 2012
 

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In a recent article in Business Week, we learn that low wages are drawing the textile industry to Cambodia and other Southeast Asia countries.

As mentioned in the article, "Cambodia is just like China was 20 years ago. It's on the verge of a big expansion," says Fung, a 40-year veteran of the business who may open more factories outside Phnom Penh. Hong Kong-based Top Form, which supplies Vanity Fair, Warnaco Group, and Wacoal, has reduced its China production from 65 percent of total output three years ago to just over 50 percent now. It could drop to just one-third. "In Cambodia, people are happy to have a job," says Fung. "But in China we keep losing workers. Whether we like it or not, we will be moving out."

As in China, workers in Cambodia are showing a proclivity to strike. More seriously, other low-cost countries are vying for plants, too. "The challenge is if another country can pay salaries cheaper than Cambodia—maybe Myanmar," says Tan. "We don't know what will happen tomorrow."

According to the article, China's share of the developed world's textile imports is dropping as lower-wage Southeast Asian competitors step up production.
Apparel Search is in agreement that the fashion industry and textile industry will float around the globe in search of lower cost.

 

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