(Source: chinatimes0501) 

Sino-US trade war, coupled with cost considerations, global brand factories have shifted their procurement focus to Southeast Asia. Domestic textile fiber upstream, midstream and downstream raw materials, yarn, cloth and garment factories have gradually expanded, and they have gathered together to create a one-stop supply in Southeast Asia. Chain, Southeast Asia has become the second production base of textile mills besides Taiwan.

 

In 2016, Far Eastern New announced the launch of an investment project for a Vietnam textile and garment factory. The total investment amounted to US$760 million (approximately NT$25 billion), and it is the largest production base outside the Taiwan Strait.

 

Far East New Vietnam Factory includes two series of solidification and fiber. The first phase will be put into operation in 2018. The project includes 400,000 tons of polyester, non-woven fabrics, dyeing and finishing plants, long-staple yarn factories, and 144 new production lines for garment factories. Far Eastern New Corporation pointed out that under the request of brand customer orders, Far Eastern Newcomer will continue to build a one-stop supply chain of garments, fabrics and yarns in Vietnam as planned, and will expand to the production of accessories.

 

However, in the past ten years, the cost of land for setting up factories in Vietnam has increased by more than 10 times, and labor wages have also increased at an annual rate of 10% to 15%. With Vietnam's land and labor costs rising year by year, Indonesia has become a domestic textile factory. After Vietnam, fully invested in the production base in Southeast Asia.

 

Lili, a polyester fiber processing yarn factory, invested US$50 million to set up a new factory in Bandung, Indonesia in 2017. Last year, it announced that it would expand its investment in the Indonesian factory. The market estimates that the total investment will exceed 6 billion yuan.

 

Lili Indonesia Factory has set a development plan for 25-30 years. Initially, it will focus on weaving, dyeing and finishing. In the future, it will develop upstream false twist and drawn yarn, and integrate towards a one-stop production model.

 

In order to complete the upstream, midstream and downstream supply chain of Indonesian factories, Lili actively invites domestic textile post-processing factories such as webbing, laminating, button belts and other industries to go to Indonesia to build a complete supply chain.

 

Lili pointed out that at present, except for the produced fabrics, they are provided to Juyang, a garment factory. It has also invited a domestic accessory factory that provides NIKE webbing to produce in Indonesia. In the future, there will be button factories and lamination factories stationed there to form a complete supply chain.

 

A clothing supply chain with Lili Indonesia factory as raw material supply, Juyang garment production, buttons and fittings and other accessories factories is expected to take shape.

 

Garment factory Ruhong announced in 2019 that it would send troops to Indonesia, planning to invest 5.27 billion yuan in three years to expand the factory in three stages. In order to complete the supply chain of garment production, Ru Hong pointed out that the company will include relevant manufacturers of garment accessories such as fittings, ribbons, buttons, etc. as part of the supply chain of the Indonesian factory.