Japanese Garment Enterprises Explore Southeast Asian Market To Reduce Costs

Worried about the impact of rising labor costs on China's recent gains

In recent years, Japan has been expanding its procurement from emerging economies with lower labor costs, and Japan's comprehensive trading companies and trading companies are competing to expand their clothing production and procurement in Southeast Asia.

Mitsui products in Burma and other countries selected cooperative factories, plans to increase the proportion of overseas production in Southeast Asia from 2 to 4.

Sumitomo plans to set up a garment manufacturer in Vietnam this month.

Japan's clothing industry and

Most shops do not set up factories in Japan, but are mainly produced overseas through trading companies.

Because of low labor costs, these businesses are concentrated in China, and the ratio of imports from China has reached 8.

But in the past 5 years, China's labor cost has increased by about 1 times, so as to meet the demand of low price products in Japan.

We have to create channels of production that will ensure profitability.

Mitsui products have signed agreements with factories in Vietnam and Burma to obtain an exclusive garment production line with a total annual capacity of 1 million.

During the year, 500 thousand factories in Kampuchea will start work.

Sumitomo commercial clothing company has about 50 technical instructors, including the Japanese, in local legal persons in Vietnam.

We hope to expand production in Vietnam and improve the quality of Kampuchea and Laos cooperation factories.

Marubeni plans to raise about 15% of the Southeast Asian production ratio to more than 3 by the end of 3 in 2014.

Itochu will send Japanese technicians to Burma factory to expand the production of shirts.

MITSUBISHI is also preparing to set up bases in Indonesia and Kampuchea to increase procurement channels.