Processing and Trading Project of Home Textiles Facing South Asia and Southeast Asia in Dehong

Project Name

德宏面向南亚东南亚家纺加工贸易项目

Processing and Trading Project of Home Textiles Facing South Asia and Southeast Asia in Dehong

Project

Industry

Food and Consumer Goods Manufacturing Industry

Project Site

Dehong Autonomous Prefecture

Project Overview

This project will rely on the location advantages of Dehong Autonomous Prefecture to continuously develop the textile industry and the silk industry to meet the rising demand for home textiles in South and Southeast Asia. It is planned to build a processing and trading project of home textiles facing South and Southeast Asia in Dehong Autonomous Prefecture and establish a modern home textile production center integrating the production of shell fabrics, the processing of supplied materials, product design, brand operation, and import and export trade. The project will produce bedding products, home decorations, kitchen products, sanitary products, and flooring products. It aims to build a core home textile production base of China facing South Asia and Southeast Asia and the base for the high-quality development and manufacturing of home textile products in Yunnan Province, to seize the domestic market and the markets of European and North American developed countries and create a new regional economic growth pole.

Project Construction Content

Construction Scale: The construction of the project mainly includes raw material processing center, shell fabric production and processing workshop, product production workshop, comprehensive office building, science and technology R&D center, warehousing workshops (raw material warehousing and product warehousing), commodity import and export trade center, and supporting infrastructure.

Land Area: determined according to the enterprise demand.

Supporting Conditions

First, convenient port trade. Dehong Autonomous Prefecture has 3 national first-class ports (Ruili Port, Wanding Port, and Dehong Mangshi Airport) and 2 national second-class ports (Zhangfeng Port and Yingjiang Port). Ruili Port is China's largest land port for trade with Myanmar. The total import and export trade at Ruili Port accounts for more than 70% of Yunnan Province's trade with Myanmar and about 40% of the national total with Myanmar. Zhangfeng Port in Longchuan docks with Lweje Port in Myanmar. Lweje Port is the only port for textile import designated by the Myanmar government. The textile exports from Zhangfeng Port to Myanmar account for more than 80% of the textile exports from Kunming Customs District to Myanmar.

Second, location and transportation advantages. Located at the junction of China, South Asia, and Southeast Asia, Dehong Autonomous Prefecture is one of the most convenient passages from China to the Indian Ocean; it borders Myanmar on three sides. It is an important international land port for the implementation of the "Belt and Road Initiative (BRI)" of China, a key node location of the center built to influence South and Southeast Asia, a gateway and hub of the China-Myanmar Economic Corridor, and a pilot zone for the construction of the Bangladesh-China-India-Myanmar Economic Corridor (BCIM).

Third, developed silkworm breeding and mulberry growing industries. There are 10 townships specializing in mulberry growing and silkworm breeding, including 2 in Mangshi, 1 in Lianghe County, 3 in Yingjiang County, 3 in Longchuan County, and 1 in Ruili City and 50 villages specializing in mulberry growing and silkworm breeding, including 10 in Mangshi, 5 in Lianghe County, 15 in Yingjiang County, 17 in Longchuan County, and 3 in Ruili City.

Fourth, industry agglomeration. Active measures have been taken to build the light textile industrial park and establish a whole industrial system from mulberry planting and silkworm breeding to garment making with such major projects as Dehong Zhengxin Industrial Co., Ltd. and Yunnan Kaixiya Silk Textile Industry Co., Ltd. as the pillar. With the development model of "government + company + base + peasant household", Dehong Zhengxin Industrial Co., Ltd. has established small silkworm co-breeding bases in China and Myanmar respectively and promoted the development of mulberry gardens. A lot of well-known domestic leading clothing enterprises from eastern coastal cities of China like Youngor, Yeqin Apparel, and Orient International have settled in Dehong and exerted the agglomeration effect of the clothing industry. Also, some clothing enterprises transferred from Henan Province, with Henan Yufa Group as the leading enterprise, as well as the clothing industrial new towns of enterprises in other regions, have been gathered here, creating a new industry-city integrated development model and forming an industrial cluster integrating the R&D and training, production and processing, sales, import and export, industrial tourism, and warehouse logistics related to textile and garment.

Investment Estimate and Fund Raising

Investment Estimate: RMB 800 million.

Fund Raising: self-raised by the enterprises, investment attraction, and other ways of financing.

Preferential Policies Applicable

The project is entitled to preferential policies on investment attraction at the levels of the country, Yunnan Province, Dehong Autonomous Prefecture, and the counties and regions undertaking the project.

Market Prediction (Analysis)

In 2018, the market size of China's home textile industry reached RMB 220.37 billion, with a year-on-year growth rate of 4.1%, and it is expected to reach RMB 258.71 billion in 2021, with a year-on-year growth rate of 5.8%. The China-ASEAN Free Trade Area (CAFTA) is currently the world's most populous free trade area (FTA) and the largest FTA of developing countries. It is a huge economy and consumer market covering 12 countries and 3.3 billion people. Its value of trade accounts for more than 15% of the world trade, and its GDP hits USD 12 trillion. Compared with ASEAN and India, China has an obvious comparative advantage in light industrial products like textiles, clothing, and shoes. ASEAN's import of these products accounts for 21% of its total imports from China. In the next few years, China will still maintain its export advantage in these products.

Profit Model and Preliminary Benefit Analysis

After the project construction is completed and the project is put into operation, the project will focus on the South Asian and Southeast Asian markets and also pay attention to the domestic market, European market, and North American market. It will mainly make profits from the production and sales of bedding products, kitchen products, sanitary products, home decorations, interior decorations, and other home textile products. It is expected that the annual income from the main business will reach RMB 365 million, and the investment payback period will be about 6 years.

Risk Analysis

The main risks of this project lie in large investments and a relatively long construction period. Also, it will also be affected by the factors of political and economic environments such as international trade frictions. Thus, the government should introduce investors with sufficient capital and construction experience.

Cooperation Pattern

Joint venture, cooperation, participation, etc.

Contact Information

Contact Authority: Investment promotion bureaus of all the cities and counties of Dehong Autonomous Prefecture

Contact Person: Dehong Autonomous Prefecture Yu Liangkui 13578230337

Mangshi Yang Zhongqing 13988268510

Ruili Yao Chenghu 13988252077

Longchuan Xu Hongwei 13988213339

Yingjiang Wang Gentang 13988234577

Lianghe Cao Mingfei 13578270534