Vietnam's textile cluster gradually takes shape, accidentally crowding out Taiwan yarn mills

When Taiwanese fabric factories began to build new production capacity in other places, they also transferred orders to the local area. An upstream manufacturer revealed that since 2019, it has been obvious that customer orders have gradually shifted to Vietnam, and small and medium-sized yarn mills remaining in Taiwan may have a small month in the future. Zhan Zhengtian, Chairman of the Textile Exposition Association and Chairman of Yijin Group, decided at the end of October 2019 to close the Tainan Plant, the sole production capacity of Yijin’s parent company; an industry insider commented that this is a very decisive decision because of the future of Taiwanese yarns. The operation of the thread factory will only get harder and harder and no signs of improvement can be seen. Industry insiders further said that in the past, Taiwanese yarn mills could continue to survive, mainly because they cut into products with special specifications and avoided the Red Sea competition with China’s competition for mass specifications. However, in recent years, Chinese yarn mills have also realized that price competition cannot last. Also began to shift to the development of special specification products.　　 In addition, the Taiwanese fabric factory originally manufactured and produced in China, but in response to the requirements of brand customers, it gradually moved to Vietnam to set up new production lines, which also led to the gradual establishment of local yarn production capacity, forming a complete industrial supply chain. This move directly squeezed orders from Taiwan yarn mills, 'I will order goods in Vietnam faster than from TaiwanYou can get a glimpse by unfolding the financial reports of listed companies. Observe that companies that only have yarn production capacity in Taiwan. Small and medium-sized companies include Jisheng, Hongyi, Julong, Guangming, and Hongzhou. Most of the profit figures in the first three quarters of last year showed a decline. The pattern, only Guangming relies on the disposal of non-industry income from assets.　　 The unnamed yarn factory said bluntly that the US-China trade war has made the market conservative and pessimistic, but this will be short-lived. After all, the two sides cannot continue to fight, but the transfer of production capacity is long-term. Once moved, it is difficult to come back. As Vietnam's textile industry becomes more mature, orders from brand customers will naturally be concentrated in the local area.　　 New Fiber recently announced that it has signed a letter of intent with VNPOLY, a subsidiary of Vietnam Oil and Gas Group PVN. New Fiber will contract the fiber production capacity of the other party. The new fiber club with annual revenue of nearly NT$40 billion will cooperate with the other party. General Manager Luo Shiquan said frankly that in response to the requirements of brand customers and the company's speed in Vietnam is too slow, he would like to contract production capacity through cooperation with local manufacturers. One of the quick ways to quickly enter Vietnam. He Yaoren, general manager of Dimai Industry Consulting, who has been paying attention to the textile industry for a long time, believes that when brand customers put their favorite eyes on Southeast Asia and bring a series of supply chains to the local flag, large enterprises have abundant resources to adapt to the global layout, but it is difficult for small and medium-sized enterprises to follow. In the first step, the Vietnamese textile industry cluster is gradually taking shape, which will be the most discussed topic of Taiwan yarn mills. Article keywords: 　Taiwan Vietnam Investment Yarn Factory International Observation