“Disloyal” textile industry already moving away from China
03/08/2011
In an article in the Financial Times, Ben Simpfendorfer, managing director of Silk Road Associates, a Hong Kong-based economic consultancy, said Cambodia doesn’t have much capacity to pick up business from North American and European brands who have grown tired of the rising cost of production in many parts of China. Cambodia has only 255 clothing and footwear manufacturers.
Mr Simpendorfer said Vietnam has more capacity, but is also experiencing rising costs. He thinks the early winners of the move away from China will be textile producers in India and Indonesia. “The textiles sector is historically disloyal,” he said. “It has few suppliers and it is relatively easy to move 1,000 sewing machines. India and Indonesia have benefited from China’s loss of competitiveness. Exports of T-shirts from the two countries (especially India) have continued to rise strongly after the global crisis, even as those from China fall.”
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