Hk Clothing Industry

Overview

Textile quotas were eliminated among WTO members at the first time of 2005 in accordance with the Contract on Textiles and Clothing (ATC). However , resistance to quota removal spread in the US and EU. Subsequently, Tiongkok reached agreements with the EU as well as the US in June and Nov 2005 respectively. The China-US contract, effective from January 2006, governs the exports of a total of 21 groups involving 34 types of Chinese textiles and clothing products to the US during 2006-2008. The China-EU agreement, effective from 06 2005, covers 10 categories of Chinese textiles and clothing exports to the EU during 2005-2007. If you are you looking for more in regards to baju kurung alteration Malaysia check out the web site.

On the other hand, the mainland and Hong Kong agreed in October 2005 to further liberalise the mainland market for Hong Kong businesses under the third phase of the Landmass and Hong Kong Closer Economic Partnership Arrangement (CEPA III). Along with other products of Hong Kong origin, the landmass agreed to give all products of Hong Kong origin, including clothing items, tariff-free treatment starting from 1 January 2006. According to the stipulated procedures, items which have no existing CEPA rules associated with origin, will enjoy tariff-free treatment on applications by local manufacturers plus upon the CEPA rule associated with origins being agreed and fulfilled.

Hong Kong clothing companies are reputable to get ODM and OEM production. They can deliver quality clothing articles simply speaking lead time, as foreign importers and retailers request clothing suppliers to tighten up supply chain administration to ensure the ordered merchandise reaching the store floor at the right time. Significantly, Hong Kong clothing companies, the founded ones in particular, have shown enthusiasm regarding brand promotion.

Hong Kong’s complete exports of clothing rose year-on-year by 9% in the first eleven months of 2005. While Hong Kong’s re-exports of clothing rose by 20%, domestic exports fell by 14%. In the first 11 months of 2005, Hong Kong’s clothing exports to the US plus EU rose by 11% plus 18% respectively. While Hong Kong’s clothing exports to Japan levelled off, those to the Chinese landmass declined by 11%.

Industry Features

The clothing industry is a main manufacturing sector of Hong Kong. Its gross output is one of the highest amongst all manufacturing sectors, amounting in order to HK$35. 9 billion in 2003. It is the largest manufacturing employer in Hong Kong, with 1, 673 establishments hiring 28, 752 workers as of June 2005. It is also the leading earner in terms of domestic exports, taking up 40% of the total in the first 11 months of 2005.

Hong Kong’s geographic boundary has never constrained the development of the forward-looking clothing industry. The majority of clothing manufacturers have set up offshore production facilities in an attempt to reduce operation costs. Relocation of production services offshore has however resulted in a stable decline in the number of clothing manufacturers in Hong Kong.

Hong Kong is not only a leading production centre but also a centre for clothing sourcing globally. Businesses doing garment trade in Hk are experienced in fabrics purchase, sales and marketing, quality control, logistic arrangements, clothing designs and international and national rules and regulations. The professionalism that they command and the mixed services offered are not easily matched up elsewhere. With a total of 15, 190 establishments hiring 95, 889 workers, they form the largest team involved in import-export trade in Hong Kong.

Performance of Hong Kong’s Exports of Clothing

Hong Kong’s complete exports of clothing rose year-on-year by 9% in the first eleven months of 2005. While Hong Kong’s re-exports of clothing flower by 20%, domestic exports fell by 14%. The contrasting overall performance of Hong Kong’s re-exports plus domestic exports was basically attributed to the increasing relocation of garment manufacturing to the Chinese mainland, caused by the removal of quotas under WTO’s Agreement on Textiles and Clothing (ATC). But the declining trend of household exports has been reversed somewhat in recent months, due to the re-imposition of quantitative restraints on mainland-made textiles and clothing by the US and EU.

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