When the Taiwan cloth factory began to build new capacity to the field, the order was transferred to the local area. An upstream manufacturer revealed that since 2019, customers' orders have been gradually transferred to Vietnam, and the small and medium yarn factories in Taiwan are afraid to spend the next month.
At the end of October 2019, Zhan Zhengtian, chairman of the board and chairman of the group of Yi Jin group, decided that it would be appropriate to shut down the only production capacity of the parent company in Tainan plant. An industry member commented that this is a very decisive decision, because the future operation of Taiwan yarn mill will only become more and more laborious, and no signs of improvement can be seen.
The industry further said that in the past, the Taiwan yarn factory could continue to survive, mainly because of cutting into special specifications and avoiding competition with China for the Red Sea competition of the public standard. However, these years, the Chinese yarn factory also realized that price competition could not last long and began to turn to special specification product development.
In addition, the Taiwan cloth mill was originally made in China, but in response to the requirements of brand customers, it has been transferred to Vietnam to set up a new production line. It also promotes the gradual establishment of local yarn production capacity and forms a complete industrial supply chain. This will be directly squeezed out to the order of Taiwan yarn factory. "I will get goods faster in Vietnam than in Taiwan", and immediately highlight the advantages and disadvantages of geographical location.
The listing of the listed company's earnings can be a glimpse of Taiwan's yarn production enterprises. The small and medium scale enterprises include Jisheng, Hongyi, Julong, Guangming, Hongzhou, etc. most of the profits figures in the first 3 quarters of last year showed a decline pattern.
The unnamed yarn factory is speaking frankly, the US China trade war has made the market conservative and pessimistic, but this will be temporary. After all, the two sides can not continue to fight. The transfer of production capacity is long term, but once it is removed, it will be hard to come back again. When Vietnam's textile industry becomes more and more mature, brand customer orders will naturally focus on the local market.
New fiber announced the signing of a letter of intent with PVN, a subsidiary of Vietnam oil and gas group, VNPOLY. The new fiber will package the fiber production capacity of the other side.
The new fiber Association, which has annual revenues of nearly NT $40 billion, will work with the other partners. Luo Shiquan, general manager, admitted that in response to the requirements of the brand customers and the slow pace of Vietnam, the company would like to cooperate with the local manufacturers to pack capacity, which is one of the shortcuts to enter Vietnam quickly.
He Yaoren, general manager of Di Mai industry consultant, who has long been concerned about the textile industry, believes that when the brand customers will put their eyes on Southeast Asia and bring a series of supply chains to the local flag, large enterprises will have rich resources to cope with the global layout. In contrast, it is difficult for SMEs to keep pace. The Vietnamese textile industry is gradually shaping up, which will be the highest topic of discussion in Taiwan yarn factory.