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Textile Industry Case Study

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Battle for the textile and apparel industry in Southeast Asia
• The reasons for China’s decreasing presence in the industry
• Initiatives by the governments in Southeast Asia to boost the textile trade
• Vietnam and Bangladesh’s quest to conquer apparel industry and surpass India
Textile manufacturing is characterised as a high labour intensive industry and the enterprise has been steering the economic growth in Southeast Asia. The industry is closely linked to the agriculture sector and the raw materials such as cotton and jute, which are easily available, this along with high crop subsidies have supported the growth of textile manufacturing in the region.
China has been dominating the industry for more than three decades as far as production
…show more content…
The major reasons for this growth are a strong multi-fibre base (cotton, jute, silk, wool and synthetic), excessive investments, rising disposable incomes and governmental initiatives. In the 2016-17 budget, the customs duty on raw materials for technical textiles was reduced to as low as 2.5%, this decreased the production cost for textile manufacturers. Moreover, initiatives like tax incentives, job security and EPF schemes will make the textile sector more robust. In addition, India also received an FDI of $620 million in 2016-17, this is triple the size of the FDI in 2013-14. Addedly, several investments are in the pipeline. Max Fashion, a Dubai based venture is planning to invest $60 million to expand its sales network through 400 stores in the country (next 4 years) and Reliance Industries signed a JV agreement with Shandong Ruyi Science and Technology, this will leverage Ruyi’s global presence, technology and distribution network in …show more content…
However, Vinatex and Ha-meem are way ahead in terms of garment manufacturing. This is in line with the aforementioned fact that Vietnam and Bangladesh are denting India’s share in the export of garments. In fact, Vinatex displayed the highest efficiency in terms of annual capacity per manufacturing plant, the figures stood at 13.6 million pieces. The firm will invest $240 million in fibre, fabric and garment development to further strengthen its production capacities in 2017. Furthermore, as Ha-meem is a renowned apparels name in America and Europe, it will soon venture into knitted products and capitalize on the economies of

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