Sri Lanka seeks joint ventures with Chinese apparel manufacturers
BEIJING – Sri Lanka is seeking joint venture partnerships with Chinese apparel manufacturers as the Chinese are under strong pressure to consider cutting production costs and moving production sites to other lower-wage countries, government officials said.
Sri Lankan companies are spotting an opportunity in China’s vast manufacturing capability and the equally strong purchasing power and several such apparel firms have already approached the Sri Lankan Embassy in China to gain access for them to penetrate the Chinese domestic market and also set up joint ventures to produce internationally branded products for overseas markets, embassy sources said.
A recent survey by the ‘China National Garment Association (CNGA)’ showed the cost of Chinese textile and garment companies on labour, raw material, energy and financing were and as such Chinese textile market shows promise for foreign imports from countries like Sri Lanka, Ms. Shirani Ariyaratne, Counsellor Commercial) at Sri Lanka Embassy in China told the Business Times in a recent interview.
She noted that Ambassador Ranjith Uyangoda has initiated negotiations with Chinese authorities to provide access for Sri Lankan apparel manufacturers and establish contacts between both parties.
Both governments have entered into a Memorandum of Understanding to establish two Joint Working Groups on trade and economic cooperation.
“As a result of this we hope our readymade garments can enter into the Chinese market with more benefits in the future. To expand the market with this benefit in the future, we should cater to the present market at the real time,” she said.
China’s garment industry is now working on a sound processing system and seeking more international cooperation and wish to work and develop with the global garment industry in a better awareness of innovation, she revealed.
According to the ‘Going Global Policy’ mentioned in China’s 12th Five-Year Plan, the China National Textile and Apparel Council has organized a ‘Going Global Forum’ in Beijing inviting countries like Sri Lanka, a strategic partner of China to negotiate market access instruments with Chinese authorities as a priority market because of enormous potential it offers.
She quoted Jiang Hui, Chairman of the China Chamber of Commerce for Import and Export of Textile and Apparel as saying that this forum is the ideal solution to deal with the current excess capacity, reduce the comprehensive costs through allocation of global resources and enhance the international recognition of their brands.
More than 100,000 garment manufacturers employ over 10 million people in China. In 2012, China made altogether 43.6 billion pieces of garments with an export value at $153.219 billion.
It is not difficult for Sri Lanka to start joint ventures with Chinese apparel manufacturers because of their presence in large numbers.
The Sri Lankan Embassy is ready to start a match making process as a facilitator towards this end, Ms. Ariyaratne said.
Understanding government policy and regulations is critical to success in Chinese B2B markets, she added.
The two-way trade between Sri Lanka and China has been on the rise in both directions.
comments powered by Disqus