The textile and clothing chain within the ten countries of the
Association of Southeast Asian Nations (Asean) needs to be vertically
integrated in order to ensure the competitiveness of the Asean apparel
industry.
This was echoed by various
textile and apparel sector experts at the ‘Prime Source Forum –Focus on Asean’
held in the Indonesian capital of Jakarta last week.
Giving an overview of the Asean
textile and garment market and its export potential, Mr. Ade Sudrajat, chairman
of the Indonesian Textile Association (API), said the 640 million inhabitants
of the Asean region themselves create a huge market for apparels. Secondly, the
coming into effect of the Asean Economic Community (AEC) by 2015 will speed up
the flow of capital, labour and goods within the ten-nation bloc.
Moreover, the free trade
agreements (FTA) between Asean and other countries like Australia, China,
India, Japan, New Zealand and South Korea, along with the proposed
Trans-Pacific Partnership (TPP) will bring both investors and buyers into the
region, he added.
In such a scenario, integrating
Asean’s regional supply chain is essential to increase the competitiveness of
the Asean apparel sector in future, he said.
Mr. Mark Lee, vice president of
Singapore Textile and Fashion Federation, said Asean companies will have to
further intensify the vertical integration of their textile and garment
industry in order to increasingly benefit from a shift in production and
sourcing base from China.
Speakers also stressed on the
need for investing in raw materials production. For example, Vietnam imports
yarn for its textile and garment industry from China and if it is available
within Asean, Vietnam manufacturers could source their yarn from there and
decrease costs, said one expert.
Mr. Prabakaran Kesavan from
Source Asean Full Service Alliance (SAFSA), which links fabric mills and
apparel manufacturing units across Asean, said South Korean and the US textile
mills would set up their own spinning units in the Asean region if the TPP is
agreed.
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