Garment zone to advance sector in western regions

[CNTEX Report]

A garment industrial park will debut in Chengdu, capital of Southwest China's Sichuan Province, providing a base to further advance the industry's boom in the country's western regions.

With the planning stage complete, Chengdu West China Clothing Industry Zone will begin construction during the first half of this year, said Luo Mingyang, president of the zone.

Zhou Jinliang, vice-chairman of the China National Garment Association, said the project will be a key part of the Chinese clothing industry's development strategy.

"The establishment of the industrial park will help bring together garment businesses in the western regions, which complies with the country's western development strategy," said Zhou.

Construction of this project will also improve the clothing industry level and comprehensive competitiveness of the west, Zhou added.

At present a few developed coastal cities in China's eastern parts account for 95 per cent of the industry's output, while the west only takes 2.1 per cent.

The comparative advantage of cheap running costs and abundance of labour are causing a shift by industry from east to west, a key factor for China's labour-intensive garment industry.

The association had the idea two years ago to choose a suitable place in western China to boost the industry's further development, said Zhou said.

Chengdu finally became the destination, because the city is the biggest centre of science and technology, business and finance in western China.

The city also provides abundant human resources and represents a huge consumption market in western China, added Luo, the new zone's president.

The zone will cover 3.4 million square metres and incorporate 300-500 apparel manufacturers.

The total investment will reach 2 billion yuan (US$241.6 million) with an initial investment of 900 million yuan (US$108.74 million) for the first phase, said Luo.

Its aim is to establish a business environment which will generate an annual sales income of 10 billion yuan (US$1.21 billion), said Luo.

Its annual output of garments is expected reach 60 million pieces and create 30,000-50,000 jobs. China Daily> (C13)