From May 14 to 15, the two-day “ Belt and Road †international cooperation summit was held in Beijing Grand. The guests from more than 100 countries gathered in Beijing to discuss the “One Belt and One Road†construction cooperation plan.
This is a major opportunity to "sum up the past and plan the future." In this opportunity, as the textile industry and the "Silk Road" the most historical origins as an integral part of today's market economy, China's textile industry is how to integrate "all the way along the" building? What is the overall status of China's textile industry overseas layout, and what problems are it facing? How should we grasp the dividend of the “Belt and Road†construction and achieve mutual benefit and win-win with the global textile industry?
Urgent demand
Benign interaction upgrade capacity through international cooperation with domestic transformation
"The United States, European customers to invest in Ethiopia we have heard, have given great support and confidence. UNIQLO Japan, etc. We also said that the completion of the single will go under. Going to upgrade is an important choice and layout." In this On the eve of the “One Belt, One Road†international cooperation summit, Chen Lifen, chairman of Jiangsu Sunshine Group, revealed at the meeting of Ethiopian Prime Minister Haier Mariam Desaleni and representatives of Chinese textile entrepreneurs that Sunshine Group is in the Ethiopian Dharma Industrial Park. Build a large-scale textile and garment production base with a total investment of 980 million US dollars. At present, the first phase of the project with an investment of 350 million US dollars has been started. The planned 150,000 square meters plant will be opened soon, and it is expected to be put into operation one year later.
In addition to the Sunshine Group, more and more companies have taken or are considering taking this important step.
Tianhong Group has invested in the construction of Tianhong Renze and Tianhong Yinlong in Vietnam. Now it has more than 1.25 million spindles. It is the largest yarn manufacturer in Vietnam, accounting for 17.8% of the total production capacity of about 7 million in Vietnam. Lutai Group's 30 million-meter yarn-dyed production line in Vietnam was officially put into operation in September 2016; Litaisi Road started the construction of the 120,000-spinning spinning mill project in Karshi, Uzbekistan, Kaz. Launched in June 2017; Qingdao Jifa Group has invested more than 400 million yuan in 2016 in the existing garment factories in Vietnam and Cambodia, and started construction of weaving and dyeing factories in Vietnam; Ruyi acquired the Australian Kabi cotton farm; Acquired New Zealand's dissolving pulp company in Canada; Youngor, Zhongyin Cashmere, Ruyi, Wanshili, Jiangsu Jin, etc. acquired global brands and technical resources through mergers and acquisitions...
The “One Belt, One Road†cooperation initiative proposes that in the past four years, Chinese textile enterprises have actively established cooperative relations with the national textile industry along the “Belt and Road†and sought cooperation opportunities in the entire industry chain, and achieved remarkable results. Vice president of China Textile Industry Association, China Textile International cooperation in capacity Enterprise Alliance executive director Xu orientation, commented: Chinese textile industry overseas investment has multi-regional, multi-industry and multi-form to accelerate the trend, key enterprises active international The awareness of layout has been significantly improved, and the textile industry's foreign investment covers almost the entire textile and apparel industry chain.
“Industry enterprises have adopted the international capacity cooperation to carry out the global distribution of productivity and the global allocation of high-quality resources, and the demand for positive interaction with domestic industrial transformation and upgrading is very urgent.†Xu Yingxin said that in recent years, China's textile industry has entered the global stage of distribution, “going out†The pace is rapidly accelerating. Especially since the global financial crisis in 2008, the average annual growth rate of foreign direct investment in the textile industry reached 30.88%. In the 2015-2016 industry alone, foreign direct investment exceeded US$4 billion, accounting for more than half of the total stock since 2003.
Inevitable
Create a new advantage in the international competition of the industry
Since the implementation of the “Belt and Road Initiativeâ€, with the continuous strengthening of the “five links†such as policy communication, facility connectivity, trade smoothness, capital financing and popular support, the textile industry has gone global in the process of “going out†for global layout and capacity cooperation. gain much.
In the interview, Xu Yingxin said that from the national level, China began to change from a capital-importing country to a capital-exporting country last year, especially the “One Belt and One Road†initiative and the firm promotion of the international capacity cooperation strategy. "The global layout has created an unprecedented macroeconomic and political environment.
According to a company that has been developing in Ethiopia for many years, “When I first arrived in Ethiopia, it took an average of five months to transport containers from China to Ethiopia. Now it can be reached in one month. The proportion of transportation costs is 6%, and now it has dropped to 4.2. From China's shipping containers to Addis Ababa, the capital of Ethiopia, it takes only 25 days, and transportation costs only account for 2.1%. To achieve Ethiopia's goal of becoming an African manufacturing center in 2025, the local government has been eager to provide enterprises with Excellent business environment.
In recent years, many countries and regions along the “Belt and Road†have also regarded textile and garment industry and Chinese textile and garment enterprises as “Xiangxiangâ€, and formulated a series of revitalization plans to expand exports and improve the industrial chain to make their own textile and garment industry. Get a rapid development.
In particular, seeing more new opportunities for cooperation and development with China, the awareness of open cooperation among countries and regions along the “Belt and Road†has been significantly enhanced, and the relevant laws and regulations, preferential policies and government services have been continuously improved, and they are committed to foreign companies including Chinese companies. Investors offer more attractive conditions and look forward to and welcome Chinese companies to invest in the industry.
From an industry perspective, since the financial crisis, the recovery of world total demand has been weak, and many factors inside and outside have caused unprecedented challenges in the international comparative advantage of the textile industry. “Going outâ€, taking the initiative to control the high-quality resources of the vertical industrial chain on a global scale, has become an inevitable move for the industry to create new advantages in international competition.
When concentrating on the international layout of China's textile industry, Xu Yingxin suggested focusing on the cooperation opportunities of China-Southeast Peninsula, China-Pakistan Economic Corridor, Bangladesh-China-Burma, China-Central Asia, China-Africa, and of course Pay attention to risk management. In the aspect of high-quality resource cooperation in the industrial chain, it is necessary to carry out investment mergers and acquisitions in the specific segments of the upstream and downstream of the industrial chain with high-quality resources, advanced research and development capabilities, technologies and terminal channels in a global perspective, so that the backbone enterprises of the Chinese textile industry can pass global quality resources. The configuration and collaboration have grown smoothly into global companies with sustained profitability and innovation.
Win-win road
Sharing development results with the global industry chain
At the same time that Chinese enterprises have benefited greatly through complementary advantages, the textile industry, which is a livelihood industry, has brought economic development and social stability to countries and regions along the “Belt and Road†and achieved mutual benefit and win-win results.
Xi Jinping said in "all the way along the" International Cooperation Forum keynote speech: "Chinese enterprises have been built 56 economic and trade cooperation zones in more than 20 countries, the creation of nearly $ 1.1 billion in revenue and 180,000 jobs in the countries concerned." Among them, there are contributions from textile companies.
"We believe that the "One Belt, One Road" is the road to the heart and the road to win-win. The Sihanoukville Special Economic Zone, which our Red Bean Group has led in Cambodia, is trying to do such a typical practice." Zhou Haijiang, Chairman of the Board of Directors of Hongdou Group According to the introduction, a decade ago, the Xigang Special Administrative Region was still a barren land. There was no water and no road. Now, the first phase of the park with an area of ​​5 square kilometers has been formed, and it has become an international industrial park with complete production and living facilities in Cambodia.
It is worth mentioning that under the positive response of local residents, hundreds of students have received free training from the Xigang Special Zone. Some of the students in the district have served as “white-collar workers†in the region. a cow".
In 2010 and 2015, Xigang Special Zone has sponsored two batches of outstanding Cambodian youths to go to China Red Bean University and Wuxi Business School for further study. In the nine phases, a total of 23,000 people received training. After training, many people were promoted to the class (group), guidance, translation and middle management positions by first-line operators.
While driving local people to become rich, China's textile enterprises and China's textile industry have also brought advanced experience in industrial planning development and confidence in economic development to countries along the “Belt and Roadâ€.
Hawassa Industrial Park is a model industrial park built by the Ethiopian government since 2015. At present, many fabric and clothing companies have signed up and occupied all the factories. The great success of the first phase of the Hawassa Industrial Park has given the Ethiopian government confidence in attracting foreign investment to the manufacturing industry and industrialization.
The Ethiopian government's determination for industrialization is very strong, especially the strategic decision to develop textile and apparel as a pillar industry. Ethiopian Prime Minister Heilmariam has repeatedly stated that the country is currently working to achieve industrial development and economic structural transformation, and is committed to becoming a manufacturing center in Africa. The Ethiopian government clearly hopes to develop the entire industrial chain of textile industry from cotton to spinning, weaving, clothing, etc., especially to textile enterprises that encourage foreign investors to invest 100%, and is willing to conduct in-depth and in-depth cooperation with the Chinese textile industry.
Of course, risks and shortcomings still exist.
"At present, the company's overseas investment risk management and operational capabilities are still at the stage of exploration." Xu Yingxin pointed out that investment security and risk prevention and control should be the most concerned factors for enterprises, and fully understand the legal system, political and trade union environment and culture of investment sites. Customs, as well as the selection of appropriate investment transaction structures, tax arrangements and management teams are very important, and the relevant capabilities of the company need to be enhanced. At the same time, overseas mergers and acquisitions, especially overseas brand mergers and acquisitions and brand output, still lack an ecosystem that takes a group of global brands as the leader, completely dominates and builds a multinational supply chain based on me and occupies the global industrial value chain.
In the foreseeable future, with the “Belt and Road†construction opening a new chapter for international cooperation, the Chinese textile industry will also grasp major historical opportunities, create new advantages in international competition, and achieve mutual benefit and win-win cooperation with the world textile industry. .
Service, coordination, openness, and win-win
Interview with Xu Yingxin, Vice President of China Textile Industry Federation and Executive Director of China Textile International Capacity Cooperation Enterprise Alliance
In March of this year, the China Textile International Capacity Cooperation Enterprise Alliance was announced in Shanghai. This is a major measure for China's textile industry to integrate into the national “Belt and Road†construction. It also marks a major turning point in China's textile industry from product export to capacity cooperation. On the occasion of the “One Belt, One Road†International Cooperation Summit Forum, “Textile and Apparel Weekly†interviewed Xu Yingxin, Vice President of China Textile Industry Federation and Executive Director of China Textile International Capacity Cooperation Enterprise Alliance.
TAweekly: What are the characteristics of the overseas layout of the textile industry?
Xu Yingxin: On the one hand, China's textile industry realizes the internationalization of productivity and supply chain through active greenfield investment. On the other hand, through cross-regional deep cooperation of high-quality resources such as raw materials, brands, channels and R&D, we strive to achieve global cooperation with countries. Deep cooperation and common development.
In terms of overseas productivity distribution, it presents the layout pattern of “China Mainland + Southeast Asia + Africaâ€; in the overseas high-quality resource mergers and acquisitions, through the raw material resources, design and development resources, brand resources and market channel resources at both ends of the industrial chain, globally The vertical extension and control have driven my industry to penetrate into the high value-added field; in the control of upstream raw material resources, we have acquired high-quality brands and technical resources globally through mergers and acquisitions.
TAweekly: What kind of situation is currently facing the textile industry, and why is it proposed to establish a textile international capacity cooperation enterprise alliance?
Xu Yingxin: Under the background of China's textile industry accelerating the pace of “going outâ€, 94 alliance members came together under the call of China Textile Association to form the “going out†family of the China Textile International Capacity Cooperation Enterprise Alliance. It can be said that the path of the industry's backbone enterprises to carry out the transnational layout of productivity and the global allocation of high-quality resources and the transformation and upgrading of domestic industries are very clear. The alliance work was also guided and supported by the National Development and Reform Commission, and was included in the National Development and Reform Commission's overall planning to promote international capacity cooperation and project docking mechanism.
TAweekly: At present, what are the appeals of the members of the alliance and how can the alliance provide services?
Xu Yingxin: At present, the Alliance has a total of 94 member companies from the textile industry chain, textile industry organizations, institutions, related research institutions, media and other members. Alliance members unite as one and develop together; the entire alliance is considered to be a community of destiny, a joint fleet that hangs out to sea.
Based on the principle of "service, coordination, openness, and win-win", the alliance builds a comprehensive service platform for international capacity cooperation in China's textile industry, establishes cooperation mechanisms for all parties, achieves mutual benefit and win-win results, safeguards the legitimate interests of alliance members overseas, and is committed to the textile industry internationally. Health and sustainable development of capacity cooperation. As a service coordination platform for alliance members to jointly expand global interests, the Alliance will strive to build three service systems: “bridge cooperation platformâ€, “investment promotion platform†and “information research platformâ€.
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