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In 2018, the Textile Industry Branch of the China Council for the Promotion of International Trade (hereinafter referred to as the "Council for the Promotion of International Trade") was approved by the Lancang-Mekong Cooperation Special Fund Project "Promoting the Production Capacity Cooperation Series of Textile and Garment Industry in the Six Lancang-Mekong Countries", and plans to cooperate with the other five countries through a series of activities and work measures to promote and deepen the cooperation in textile and garment production capacity in the Lancang-Mekong basin.

　　Lancang-Mekong Cooperation

The Lancang-Mekong Cooperation (hereinafter referred to as "Lancang-Mekong Cooperation") is a new type of sub-regional cooperation platform jointly initiated and built by my country and the five Mekong countries (Vietnam, Myanmar, Laos, Thailand, and Cambodia). The close interaction is also an important platform for the construction of the "Belt and Road.

In order to implement the Lancang-Mekong Cooperation Special Fund Project commissioned by the Ministry of Foreign Affairs-"Promoting the Textile and Garment Industry Production Capacity Cooperation Series Project in the Six Lancang-Mekong Countries", establish a long-term working mechanism for the textile and garment industry production capacity cooperation in the Lancang-Mekong Basin, and promote and deepen the textile and garment production capacity cooperation in the six Lancang-Mekong Countries, April 24 to May 3, 2019, xu Yingxin, vice president of China Textile Industry Federation, executive vice president of textile industry branch of China Council for the promotion of international trade and executive director of China textile international production capacity cooperation enterprise alliance, A 10 member professional working group of textile industry visited Cambodia, Laos and Myanmar, We will communicate and consult with the textile and garment merchants association of the three countries, the competent government departments and the business office of the local embassy on jointly promoting the production capacity cooperation of the textile and garment industry in the six countries. At the same time, the working group also conducted in-depth research on the latest development of the textile and garment industry in the three countries and the investment and cooperation of Chinese textile and garment enterprises in the above-mentioned countries.

This visit involved 3 countries and 4 cities, and a total of 14 official activities were completed. The full amount of dry research is worth collecting. The full text is 6445 words and is expected to take 17 minutes to read.

　　First stop: Southeast Asia investment hot spot -- Cambodia

Cambodia, formerly known as Khmer, is located in the southern part of the Indo-China Peninsula in Asia. The Mekong River runs through the entire territory from north to south. It is one of the Lancang-Mekong cooperation partner countries. With a land area of 181000 square kilometers and a 16.27 million population, about 95% of the country's population believes in Buddhism.

Most people's impression of Cambodia comes from its famous national treasure "Angkor Wat". For all textile workers, Cambodia not only has a world-class tourist attraction, but also a "world-class investment and cooperation environment" suitable for the textile and clothing industry ".

Cambodian Garment Association

On the morning of April 25, the working group of China Textile Federation held working talks with the vice president and Secretary General of Cambodia Garment Association (GMAC). At the meeting, Xu Yingxin introduced to Cambodia the background, significance, specific activity plan and future work direction of the "Series of Projects to Promote the Production Capacity Cooperation of the Textile and Garment Industry in the Six Lancang-Mekong Countries". At the same time, GMAC was invited to join the dialogue mechanism on the production capacity cooperation of the textile and garment industry in the Lancang-Mekong Basin as a representative of the Cambodian Chamber of Commerce to jointly promote the textile production capacity cooperation in the Lancang Mekong region.

On behalf of Cambodia, Vice President GMAC He Enjia expressed his strong interest in the establishment of the above-mentioned dialogue mechanism, and promised to fully support and cooperate with the work of China Textile Federation and actively participate in related activities. At the same time, he also hoped that GMAC and China Textile Federation would further deepen their working contacts in the future and jointly serve to strengthen bilateral textile and garment industry cooperation between China and Cambodia.

GMAC is one of the most important trade associations in the field of garment processing in Cambodia, which has a great influence on the development of textile and garment industry in Cambodia. At present, there are 509 local and foreign-invested enterprises registered in GMAC, including 485 garment processing enterprises. The above-mentioned companies come from 21 countries and regions around the world, mainly including China, South Korea, Japan, Thailand, etc. Among them, there are 330 garment processing companies invested by China (207 in mainland China, 75 in Taiwan Province, 47 in Hong Kong, and Macau 1 home), ranking first in number.

Business Office of the Chinese Embassy in Cambodia

On the afternoon of April 25, the working group rushed to the business office of our embassy in Cambodia and called on Li an's commercial counselor. Xu Yingxin introduced to Li An the basic situation of the Lancang-Mekong cooperation in the textile industry and the work progress and plan of the Lancang-Mekong project of China Textile Union. He also communicated with Li Shen on the meeting with GMAC in the morning.

Li An welcomed the visit of the working group. He also said that at present, the political and economic relations between China and Cambodia are developing steadily, and the project led by the China Textile Union to promote the capacity development of the textile industry in the Lancang-Mekong Basin is of great significance to the cooperation in the field of textile and clothing between China and Cambodia. At the meeting, Li An also introduced to the working group the bilateral economic and trade cooperation between China and Cambodia and the areas that need to be focused on in the textile and garment industry cooperation between the two countries under the framework of the "Belt and Road" initiative and the Lancang-Mekong Cooperation.

During their stay in Cambodia, the working group visited the Sihanoukville Special Economic Zone invested and operated by Inner Mongolia Deer King Cashmere in Cambodia, Jiangsu Dongdu in Cambodia and Hongdou Group.

Deer King (Cambodia) Knitting Co., Ltd.

Guo Xiuqing, general manager of Deer King (Cambodia) Knitting Co., Ltd., received the working group and introduced to the working group in detail the cooperation of Deer King in Cambodia. Cambodia Deer King Company is located in the Industrial Development Zone of Cambodia, with a factory area of 12000 square meters and employing 510 local employees. It is currently the only cashmere manufacturer invested in Cambodia. The company currently has an annual production capacity of 600000 pieces and is expected to increase production to 1 million pieces per year in the next 5 years. The products produced by the company in Cambodia are mainly exported to Britain, Japan and other countries.

Jiangsu Dongdu Textile Group (Cambodia) Co., Ltd

Xu Weimin, chairman of Jiangsu Dongdu Group, made a special trip to Cambodia from China to brief the working group on Dongdu's investment in Cambodia. Xu Weimin introduced that Dongdu is one of the textile and garment enterprises that carried out the global distribution of production capacity earlier. At present, the company is operating well in several factories in Cambodia. Among them, the working group investigated Jiangsu Dongdu Textile Group (Cambodia) Co., Ltd., located in Anda Industrial Park near the capital Phnom Penh, covers an area of 8000 square meters and has three production lines. At the request of customers, Dongdu plans to add two more children's clothing production factories with 2000 to 3000 employees respectively in Cambodia, and plans to directly import fabrics from its Vietnam factory to reduce logistics and transportation costs.

Xigang District Park-Hongdou Group

The working group held working talks with Ye Wei, vice president of Hongdou Group, who made a special trip from China, in the Sihanoukville Special Economic Zone, and visited the Xigang Special Economic Zone. The Xigang Special Economic Zone is a national-level economic and trade cooperation zone jointly developed and constructed by Chinese and Cambodian enterprises in Sihanouk Province, Cambodia. The overall planned area is 11.13 square kilometers. At present, 153 enterprises (institutions) have settled in and 29000 employees have been absorbed. The park is fully equipped, and some Chinese-funded garment and home textile enterprises have settled in. In addition to operating the special zone, Hongdou Group has also set up a suit production plant with more than 800 employees in the West Port Special Zone.

　　Second stop: Pearl on the Mekong River-Laos

Laos is the only landlocked country in the northern part of the Indochina Peninsula. The Mekong River flows through 1900 kilometers. It is one of the Lancang-Mekong cooperation partners. Land area of 236800 square kilometers, the country's population is 6.914 million, most people believe in Theravada Buddhism. In 2017, the total economic volume of Laos was about 16.8 billion US dollars, and the per capita GDP of Laos was about GDP2500 US dollars. In 2018, the GDP growth rate of Laos was about 6.8 percent.

At present, there are more than 100 textile and garment enterprises in Laos, including more than 50 garment processing plants involved in export. The total number of workers in the industry is only 26000. The products are mainly exported to the European Union, Japan, the United States, Canada, Australia and New Zealand. Laos garment production since the material processing, the country does not have the upstream raw material production capacity, before 2008 production of raw materials mainly imported from Thailand, since then mainly from China.

Joint talks

On the morning of April 29, the working group held joint talks with representatives of the Cabinet Office of the Ministry of Industry and Trade of Laos, the Department of Planning and Cooperation, the Department of Industry and Handicrafts, the Lao China Cooperation Committee, the Lao National Chamber of Commerce and Industry, and the Lao Garment Industry Association. During the talks, Lao introduced to the working group the current development and problems of the textile and garment industry in Laos, and expressed to the working group a strong desire to strengthen cooperation between China and Laos in the textile and garment industry, promised to fully cooperate with the work of the China Textile Federation, and appointed the Lao Garment Industry Association as a representative of Laos to join the work of establishing the dialogue mechanism for textile and garment production capacity cooperation in the Lancang-Mekong basin.

The acting director of the Department of Industry and Handicrafts of the Lao Ministry of Industry and Trade said that the development of the textile industry is an important link in Laos's transition from an agricultural country to an industrial country. Although Laos has problems such as insufficient labor resources and insufficient export conditions, the Lao government is still confident that the textile The garment industry has developed. In particular, China is currently advocating the "Belt and Road", and Lancang-Mekong cooperation is also being carried out in many fields. These are good opportunities for Laos, and it is a good time for China and Laos to strengthen cooperation in the textile and clothing industry.

Xu Yingxin said that the working group's visit to Laos is a good start. The working group came for "friendship", "cooperation" and "development". At present, the Lancang-Mekong Cooperation Dialogue Mechanism in the textile industry led by the China Textile Federation is being established, which is a good opportunity to promote cooperation in the textile and clothing industry between China and Laos. China Textile Federation is willing to establish close working contacts with the Ministry of Industry and Trade and the Garment Industry Association of Laos, share China's experience in the development of textile and clothing industry, and assist Laos in attracting Chinese investment. China and Laos have complementary advantages in textile and garment industry, and strengthening cooperation between the two sides can be mutually beneficial and win-win.

Chinese Economic and Commercial Counsellor Office in Laos

On the afternoon of April 29, the working group went to our Business Counsellor's Office in Laos to meet with Commercial Counsellor Wang Qihui. Wang Qihui extended a warm welcome to the visit of the working group and said that this is the first domestic textile professional group he received during his tenure. He is very happy to see China and Laos strengthen cooperation in the textile field, and is willing to support China Textile The Federation promotes the development of textile and apparel production capacity cooperation in the Lancang-Mekong Basin under the framework of Lancang-Mekong cooperation, and promotes bilateral investment cooperation in the textile and apparel field between China and Laos.

Wang Qihui emphasized that after the visit of Chinese leaders to Laos in 2017, the relationship between the two countries has reached an unprecedented height, and Laos has also become the first single country in China to establish a community with a shared future. The construction of the China-Laos Community of Destiny Action Plan has brought the political relations between the two countries to a new height, and the establishment of the China-Laos Economic Corridor has also added a booster for the development of economic cooperation between the two countries. Under this historical background, the cooperation between China and Laos in textile and garment industry is promising.

Xu Yingxin introduced the joint talks with the Ministry of Industry and Trade of Laos and other departments, and at the same time communicated with Wang Qihui on many practical problems in Laos. When talking about the shortage of labor, Wang Qihui said that Laos does not lack absolute labor, and the shortage is mainly industrial workers. If the investment enterprises in the old country are willing to spend energy on industrial training in the early stage, they can transform the ordinary labor force in Laos into skilled workers. At present, the investment enterprises in Thailand and other places have adopted the above methods and achieved good results. Laos has a good humanistic environment, the people are simple, kind and peaceful, and the wages of workers are relatively low compared with other countries.

At the end of the meeting, Wang Qihui once again expressed his support for the implementation of the Lancang-Mekong cooperation project by the China Textile Federation and reminded the investment enterprises going to Laos to do due diligence.

During the old age, the working group also visited and investigated two garment processing enterprises, one is a knitted garment factory invested by a company in Taiwan Province of China, and the other is a knitted underwear processing factory jointly invested by Thailand and Laos.

Great Laos Garments

Great Laos Garments is a garment production company invested by enterprises in Taiwan Province of China. It was established in 1990 and officially operated in 1991. During the peak period of operation, the company has three factories with a total number of 3300 employees. At present, there is only one factory with less than 400 employees. The main reasons are the difficulty in recruiting workers (especially after Laos opened its labor export to Thailand, many Lao local laborers went to Thailand for employment), low working efficiency of workers (only domestic 1/3), and most international orders were transferred back to Taiwan Province for local production, at present, the factory has undertaken some US orders transferred from Huaibei and Taicang. The factory mainly produces shirts and POLO shirts.

Hi-Tech Apparel

Hi-Tech Apparel is a joint venture between Thailand and Laos garment processing enterprises, the enterprise currently has a total of 650 employees. At present, the company has an annual production capacity of 10 million to 12 million pieces. Orders are mainly from Thailand's head office. The main customers are Germany, Thailand and Canada. 60% of the raw materials for production are purchased from Thailand and the remaining 40% are purchased from China and India respectively. The company is currently operating well, and it is also one of the few garment processing companies in Laos with a large number of employees. The main problem faced by the company is transportation. At present, the products must be transported to Thailand through the Thai port before they can be sent to the customer's area.

　The third stop: the rising star of textile investment-Myanmar

Myanmar is located in the northwestern part of the Indo-China Peninsula in Asia, with a land area of 676000 square kilometers. It is the country with the largest land area in Southeast Asia and has a population of about 53 million. In 2017, Myanmar's total GDP was 66.97 billion US dollars, the GDP growth rate was 7.2, the unemployment rate was 4%, and the per capita GDP was about 1200 US dollars. Most people in Myanmar believe in Theravada Buddhism and are known as "the country of thousands of temples" and "the country of Buddhism.

Compared with Vietnam, Cambodia and other Southeast Asian countries, Myanmar is affected by economic sanctions from Europe and the United States, and the development of textile and garment industry is relatively backward. After 2011, with the lifting of economic sanctions in Europe and the United States and more and more Chinese enterprises began to invest and build factories in Myanmar, the development of Myanmar's textile and clothing industry accelerated, and the scale of trade also increased rapidly. According to ITC statistics, Myanmar's total import and export volume of textiles and clothing was only US $0.662 billion in 2010, and it has increased to US $5.54 billion in 2017, a growth rate of 736.86 per cent.

Myanmar Garment Association

On the morning of May 2, the Working Group held working talks with the Myanmar Garment Association (MGMA). The two sides conducted detailed communication and consultation on the dialogue mechanism of textile and garment production capacity cooperation in the Lancang Mekong basin led by the China Textile Union.

The Secretary-General of the Association Rosaline said that garment manufacturing is Myanmar's largest export industry, and the Myanmar government attaches great importance to the development of this industry. At present, the foundation of Myanmar's textile and apparel industry is weak and needs technical support. The six Lancang-Mekong countries proposed by China are working together in the textile and apparel field. Cooperation is very meaningful, and I hope to take this opportunity to improve Myanmar's own textile and apparel industry development level. She also said that she would cooperate with China to make relevant preparations and participate in relevant activities to be held in China in October.

Xu Yingxin expressed his gratitude to Myanmar for supporting the establishment of the dialogue mechanism. At the same time, he gave a positive response to MGMA's request for assistance. The two sides agreed to maintain close working contact and jointly promote textile and garment production capacity cooperation in the Lancang-Mekong Basin.

Chinese Embassy in Myanmar

On the afternoon of May 2, the working group went to our embassy in Myanmar to call on Ambassador Hong Liang. After listening to the introduction of Xu Yingxin, vice president of China Textile Federation, on the Lancang Mekong cooperation project of China Textile Federation, Ambassador Hong expressed support and suggested that China Textile Federation, as an industry association, should play multiple roles, not only serving China's investment in textile and garment enterprises in Myanmar, but also strengthening the guidance of enterprise investment direction.

Ambassador Hong introduced to the working group that there are currently nearly 400 Chinese-funded enterprises investing in the textile and apparel industry in Myanmar. The China Textile Federation can strengthen cooperation with the Myanmar Chinese Chamber of Commerce and work together to help China-Myanmar bilateral textile and apparel industry cooperation. At present, the two countries are jointly building the China-Myanmar Economic Corridor, and the China-Myanmar Border Economic Cooperation Zone is also under construction. The preparation of multiple special economic zones in Myanmar will also provide more diversified options for Chinese textile and garment companies to develop in Myanmar.

At the end of the talks, Ambassador Hong once again expressed his support for the implementation of the Lancang-Mekong cooperation project by the China Textile Federation. At the same time, he suggested that the China Textile Federation should strengthen communication with the embassy in Myanmar, give full play to each other's work characteristics, and better serve the textile and clothing investment enterprises in Myanmar.

During their stay in Myanmar, the working group visited and investigated factories in Shandong Lutai, Wuxi Hengtian and Dalian Longsheng in Myanmar.

Lutai (Myanmar) Limited

Sun Tong, general manager of Lutai (Myanmar) Co., Ltd., received the working group. Sun Tong said that the Lutai Myanmar factory is located in the Dilawa Economic Special Trade Zone, 25 kilometers south of Yangon, Myanmar, with a total investment of 10 million US dollars. It is 1.5 kilometers west of Myanmar's MITT port, with convenient import and export by ship. The company covers an area of 24000 square meters, with a total construction area of 14000 square meters, with an annual design capacity of 3 million pieces (high-grade shirts), and was put into operation in February 2016. At present, the company has 6 sewing production lines, with more than 900 Burmese employees and more than 30 Burmese managers. Half of the raw materials come from China and the other half come from Lutai Vietnam factories. The products are mainly all kinds of high-grade shirts for EU, Japan and South Korea markets.

The Lutai Myanmar factory is currently operating well, but it also faces many challenges, such as low labor efficiency of local employees, pressure on normal production and operation caused by various NGO organizations and trade unions, etc. Lutai Company has fulfilled its social responsibilities in place, is serious and pragmatic in employee training, and guarantees employee stability, which left a deep impression on the working group.

Hengtian (Yangon) Garment Co., Ltd.

Chairman Han Chun of Wuxi Hengtian and President Qiao Liang flew to Yangon from China to meet the working group and accompanied the working group to visit and investigate the Hengtian Yangon factory. At the forum with the working group, Han Chun said that Hengtian (Yangon) Garment Co., Ltd. was established by Wuxi Hengtian in November 2014. The company is located in Shuilingban Industrial Zone, Ledaya District, Yangon Province, Myanmar. It currently has two factories, 67 production lines and a total of 3000 employees. Hengtian Myanmar factory covers an area of 42000 square meters, with an average annual production capacity of 21.6 million pieces. The factory mainly produces knitted garments in Myanmar, most of the raw materials are purchased from China, and the customers are mainly from Japan.

Han Chun said that at present, the company is operating well in Myanmar, and the company plans to build three new production plants in Myanmar, with a total size of 10000 people and an annual production capacity of 60 million pieces by the end of 2020.

Burma Longsheng Clothing Co., Ltd.

The working group, accompanied by Wu Qi, chairman of Dalian Longsheng, visited and investigated Longsheng's garment processing factory in Myanmar. Myanmar Longsheng Garment Co., Ltd. is a garment processing factory founded by Dalian Longsheng in Myanmar in August 2015. The factory is located in Hlaing Tharyar Industrial Zone near Yangon, covering an area of 12000 square meters. Currently, it has 32 production lines and 2055 employees. Its main product categories include windbreaker, down jacket, cotton-padded jacket, PU jacket, cotton-padded jacket, woolen coat, etc. Its production capacity will be 1.5 million pieces in 2018, after technical transformation, plant expansion and hanging system installation and other measures, the production capacity is expected to reach 2.4 million pieces in 2019. Myanmar Longsheng's main customers are H & M,C & A,TESCO, etc.

Dalian Longsheng is a leading leather garment manufacturing enterprise in China. After investing in Myanmar, it began to diversify its production and operation, and its production categories increased significantly. Myanmar Longsheng has a high level of internationalization in the production management system, and the production efficiency and production capacity have been improved significantly.

Xu Yingxin, vice president of China Textile Federation, was accompanied by Qiao Yanjin, director of China Textile Federation Information Center, Yan Yan, director of China Textile Federation Social responsibility Office, Yang Yongfeng, deputy director of China Textile International Exchange Center, Zhao Mingxia, vice president of China Textile Federation Industrial Economic Research Institute, Liu Yaozhong, deputy director of China Textile International Trade Office, Chen Baojian, chief engineer of China Textile Product Development Center, Xue Feng, senior project manager of China Textile Industry Branch, and Wang of Liaoning Textile Association chong, Deputy Secretary-General Zhou Tao, etc.

　　Cambodia, Laos, Myanmar

　　China Textile Federation Working Group (April 24-May 3)

The visit of the working group was a complete success, laying a solid foundation for the implementation of the Lancang-Mekong Special Fund project with higher quality and efficiency.

Through communication with the textile and garment merchants associations of the three countries, relevant government departments and the business offices of our embassies abroad, the working group has a deeper understanding of the development of the textile and garment industry in Cambodia, Laos, Myanmar and other countries and the investment and cooperation of the bilateral textile and garment industry.

The Textile and Garment Merchants Association of the three countries all expressed support for the establishment of a dialogue mechanism for textile and garment production capacity cooperation in the Lancang-Mekong Basin proposed by the China Textile Federation, and promised to organize special personnel to connect relevant work and send personnel to participate in the launching ceremony of the relevant working mechanism to be held in China in October 2019.

(Source: China Textile International Capacity Cooperation Enterprise Alliance)