Hong Kong Clothing Industry


Textile quotas had been removed among WTO contributors at the first day of 2005 according with the Agreement on Textiles and Clothing (ATC). However, resistance to quota elimination unfold inside the US and EU. Subsequently, China reached agreements with the EU and the US in June and November 2005 respectively. The China-US agreement, powerful from January 2006, governs the exports of a complete of 21 corporations related to 34 classes of Chinese textiles and garb products to the USA in the course of 2006-2008. The China-EU settlement, effective from June 2005, covers 10 categories of Chinese textiles and garb exports to the EU at some stage in 2005-2007.

On the other hand, the mainland and Hong Kong agreed in October 2005 to further liberalise the mainland marketplace for Hong Kong groups underneath the third section linen dresses for women of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA III). Along with other products of Hong Kong origin, the mainland agreed to give all merchandise of Hong Kong starting place, consisting of apparel gadgets, tariff-free remedy starting from 1 January 2006. According to the stipulated approaches, merchandise which haven’t any present CEPA regulations of foundation, will revel in tariff-loose remedy upon applications via local producers and upon the CEPA rule of origins being agreed and met.

Hong Kong apparel corporations are authentic for ODM and OEM production. They are able to deliver satisfactory garb articles in brief lead time, as overseas importers and shops request garb providers to tighten up deliver chain control to make sure the ordered products reaching the shop floor on the right time. Increasingly, Hong Kong apparel organizations, the established ones specifically, have proven enthusiasm for logo advertising.

Hong Kong’s total exports of clothing rose yr-on-yr by using 9% inside the first 11 months of 2005. While Hong Kong’s re-exports of apparel rose through 20%, domestic exports fell by using 14%. In the primary 11 months of 2005, Hong Kong’s apparel exports to the US and EU rose by means of 11% and 18% respectively. While Hong Kong’s apparel exports to Japan levelled off, the ones to the Chinese mainland declined by means of eleven%.

Industry Features

The apparel enterprise is a primary production zone of Hong Kong. Its gross output is one of the maximum amongst all manufacturing sectors, amounting to HK$35.Nine billion in 2003. It is the most important production agency in Hong Kong, with 1,673 institutions hiring 28,752 employees as of June 2005. It is likewise the leading earner in terms of domestic exports, taking up forty% of the entire in the first 11 months of 2005.

Hong Kong’s geographic boundary has in no way restricted the development of the forward-looking garb enterprise. The majority of clothing manufacturers have installation offshore production centers in an try to lessen operation expenses. Relocation of production facilities offshore has however ended in a consistent decline inside the number of clothing producers in Hong Kong.

Hong Kong is not simplest a main production centre however additionally a hub for clothing sourcing globally. Companies doing garment change in Hong Kong are skilled in fabrics procurement, income and advertising, excellent control, logistic preparations, garb designs and international and national rules and regulations. The professionalism that they command and the blended services supplied are not without problems matched elsewhere. With a total of 15,one hundred ninety institutions hiring 95,889 workers, they shape the biggest institution concerned in import-export change in Hong Kong.