Overview of Taiwan's textile industry in 2019

Since the 1950s, Taiwan’s textile industry has experienced nearly 70 years of development and growth. Under the broad demand of the international market, the industry has continued to actively develop new products and update production equipment to expand the international market, making the textile industry the most complete in Taiwan’s industrial structure. Production system, Taiwan textiles are one of the main raw material supply sources for the world's functional textile consumer market.

The current situation of Taiwan's textile industry

Taiwan's textile industry is the main force in the upper and middle reaches, and the downstream industry needs ample labor, and more of them are scattered overseas, and they play a role as the driving force for the development of the upper and middle reaches of the industry. According to statistics, in 2019, there were about 4,255 textile factories in Taiwan, with an estimated number of 142.018 employees, and a total output value of NT$360.7 billion, of which the output value of the textile industry was NT$342.9 billion, accounting for 95.1% of the overall textile industry output value; the garment industry the output value is 17.8-billion-yuan, accounting for 4.9% of the overall textile industry output value.

1. The output value of the textile industry is the total output value of the three industries: man-made fiber manufacturing, textile manufacturing, and garment manufacturing. The total value of the textile industry decreased by 28% from 2005 to 2019. Looking at the breakdown of industries separately, the textile manufacturing industry fell by 13%, the finished garment manufacturing industry fell by 61%, and the man-made fiber manufacturing industry declined by 46%.
2. Based on the per capita output value of the textile industry, the average output value of the textile industry by employees fell from NT$3.03 million to 2.54 million from 2005 to 2019, a decrease of 16%; however, the output value and per capita output value of 2019 are both compared to 2017 and 2018 The year-on-year low is mainly due to the impact of the US-China trade war and the COVID-19 epidemic, which has led to an impact on the global supply chain. Not only has the global supply been challenged, but the consumer market has also shown a severe contraction. Therefore, it is expected that the global economy and industry will be affected this year. Have a serious impact.

1. According to statistics from the Chief Accounting Officer of the Executive Yuan, from 2005 to 2019, the average salary of the textile and garment industries in Taiwan has increased from NT$34,340 and NT$30,216 per month to NT$41,529 and NT$36,763 respectively. The average annual growth rate is 1.40% and 1.44%.
2. The number of working hours per month in the textile and apparel industry in Taiwan. From 2005 to 2019, the average monthly working hours in the textile industry decreased by 13 hours, and the average monthly working hours in the apparel industry decreased by 12 hours.

In 2019, the export value of Taiwan's textile industry was 9.18 billion U.S. dollars, and the import value was 3.55 billion U.S. dollars. The trade surplus was 5.63 billion U.S. dollars, making it Taiwan's fourth-largest trade surplus industry.

Taiwan textile exports

In 2019, Taiwan’s textile and garment exports totaled US$9.176 billion, a decrease of 8.91% from 2018. The export volume was 1.8556 million metric tons, a decrease of 9.69% from 2018. Among them, the export value of cloth was US$6.227 billion, down 6.43% from the previous year. Export value was US$1.438 billion, down 14.15% from 2018. In terms of export structure, the largest product is cloth, with an export proportion of 67.86%, indicating that the weaving industry plays an important role in the textile industry and is also the most important export product of the textile industry; the second is yarn, which accounts for the proportion of exports. 15.68%; the third place is fiber, which accounts for 6.58% of exports. Fibers, yarns, and fabrics in the upper and middle reaches of the textile industry accounted for more than 90% of exports.

In 2019, the largest export market for Taiwan’s textiles was still Vietnam, with its export value reaching US$2.225 billion, a decline of 1.94% from 2018, accounting for 24.25% of the textile export value; the other major export markets were China, with an export value of US$1.584 billion. , A decline of 18.14% from 2018, accounting for 17.26%; exports to the United States were 699 million US dollars, down 2.65% from 2018, accounting for 7.62%; exports to Indonesia were 481 million US dollars, down 12.70% from the same period in 2018, accounting for 5.24 %; the loss to Hong Kong was US$447 million, a decrease of 13.37% from 2018, accounting for 4.87%. The above five major markets together accounted for 59.24% of Taiwan’s textile export value.

If the export market is divided by geographic region, the 10 ASEAN countries are Taiwan’s largest market, with an export value of US$3.765 billion, accounting for 41.03% of total exports; China and Hong Kong have an export value of US$2.031 billion, accounting for 22.14% of total exports; others in the main export regions, exports to the North American Free Trade Zone fell by 3.27%, the export value was 859 million U.S. dollars, and the export proportion was 9.36%.

1. Textile export structure
   In 2019, Taiwan’s textile and garment exports totaled US$9.176 billion, a decrease of 8.91% from 2018. The export volume was 1.8556 million metric tons, a decrease of 9.69% from 2018. Among them, the export value of cloth was US$6.227 billion, down 6.43% from the previous year. Export value was US$1.438 billion, down 14.15% from 2018. In terms of export structure, the largest product is cloth, with an export proportion of 67.86%, indicating that the weaving industry plays an important role in the textile industry and is also the most important export product of the textile industry; the second is yarn, which accounts for the proportion of exports. 15.68%; the third place is fiber, which accounts for 6.58% of exports. Fibers, yarns, and fabrics in the upper and middle reaches of the textile industry accounted for more than 90% of exports.
2. Major export markets for textiles
   In 2019, the largest export market for Taiwan’s textiles was still Vietnam, with its export value reaching US$2.225 billion, a decline of 1.94% from 2018, accounting for 24.25% of the textile export value; the other major export markets were China, with an export value of US$1.584 billion. , A decline of 18.14% from 2018, accounting for 17.26%; exports to the United States were 699 million US dollars, down 2.65% from 2018, accounting for 7.62%; exports to Indonesia were 481 million US dollars, down 12.70% from the same period in 2018, accounting for 5.24 %; the loss to Hong Kong was US$447 million, a decrease of 13.37% from 2018, accounting for 4.87%. The above five major markets together accounted for 59.24% of Taiwan’s textile export value. If the export market is divided by geographic region, the 10 ASEAN countries are Taiwan’s largest market, with an export value of US$3.765 billion, accounting for 41.03% of total exports; China and Hong Kong have an export value of US$2.031 billion, accounting for 22.14% of total exports; others in the main export regions, exports to the North American Free Trade Zone fell by 3.27%, the export value was 859 million U.S. dollars, and the export proportion was 9.36%.

Taiwan textile imports

Import structure of textiles
The total import value of Taiwan's textile and garment products in 2019 was US$3.555 billion, a decline of 3.42% from 2018. In the structure of imported products, garment imports are still the bulk, with an import value of US$1.946 billion; the second is cloth imports with a value of US$495 million; the third is fiber imports, which is US$413 million; the fourth and fifth places are Imports of miscellaneous textiles and yarns were valued at 367 million and 334 million US dollars, respectively. Imports of textiles and garments both declined in 2019, with fibers falling the most, reaching 19.18%.

Main import sources of textiles
The top two import sources of Taiwan’s textiles in 2019 are still China and Vietnam, with import values of 1.487 billion and 477 million US dollars, accounting for 41.83% and 13.42% of textile import values, respectively; the other importing countries are the United States, Japan, and E-da in order. Profit. Compared to 2018, only Vietnam, Japan, and Italy increased their import values, while other countries' import values declined. The United States saw the largest decline, reaching 15.70%.

2018 global textile and garment trade overview
From 2005 to 2018, the average annual growth rate of the textiles and clothing trade in the world was 3.9% and that of clothing was 5.0%. After the liberalization of the textile trade in 2005, apart from shifting production locations to emerging low-cost countries such as China, India, Vietnam, Bangladesh, and Pakistan, the textile and clothing trade has grown more rapidly than in the past when it was restricted by quotas.

1. Global textile and garment trade statistics
   According to the data released by the WTO in 2018, the global textile trade volume was 313 billion U.S. dollars, and the garment trade volume was 494 billion U.S. dollars, totaling 807 billion U.S. dollars, a 0.6% decline from 2017's 812 billion U.S. dollars.
2. Major global textile and garment exporting countries in 2018
   The global textile trade in 2018 was 313 billion U.S. dollars, a decline of 0.6% from 2017; China is the world's largest textile exporter, with an export value of 118.5 billion U.S. dollars, accounting for 37.9% of the global textile trade; followed by the European Union, India, and the United States, Turkey, South Korea, and Taiwan rank 7th with an export value of 9.2 billion US dollars, ranking the world’s most important supplier of functional and environmentally friendly textiles.
   In 2018, the global apparel trade value was 494 billion U.S. dollars, down 0.6% from 2017; the world's largest apparel exporter is still China, with an export value of 157.8 billion U.S. dollars, accounting for 31.9% of the global apparel trade; The order is the European Union, Bangladesh, Vietnam, and India; among the 10 ASEAN countries, 5 countries including Vietnam, Indonesia, Cambodia, Malaysia, and Myanmar also entered the top 15 places. Taiwan ranks 36th in the world. Except for some of the domestic market, garment factories mainly exporting use Taiwan’s fine and competitively priced gauze to produce small quantities, complex styles, or short-delivery orders in Taiwan.

Major importing countries of textiles and garments in the world in 2018
The top three global textile importers in 2018 were the European Union, the United States, and China. If China added Hong Kong's re-exports, textile imports in 2018 would be 24.8 billion U.S. dollars. After China's imported textiles are processed into garments, they are exported or supplied to the domestic market. Taiwan's industry is an important expansion area. In 2018, Taiwan imported US$1.4 billion in textiles, ranking 33rd.
In 2018, the global apparel imports amounted to 527.1 billion U.S. dollars. The European Union, the United States, and Japan are the top three markets for global apparel products, with a total of 340.2 billion U.S. dollars in imports, accounting for 65% of global apparel imports; China and Hong Kong's total imports are 21 billion U.S. dollars, accounting for 4% of global apparel imports; Taiwan’s imports of 2.1 billion U.S. dollars, ranking 18th.

Since the start of the China-US trade war at the end of 2018, the layout of the global supply chain has been changed, including the textile and garment industries, which have shifted from mainland China to Southeast Asian countries for production or investment. Although the transfer order effect in the early stage of the China-US trade war increased urgent orders and short orders from domestic textile mills, as orders from global brand factories shifted to Southeast Asia, and the textile supply chain production methods of Vietnam and Indonesia gradually became complete and mature. Coupled with the continuous expansion of China's chemical fiber production capacity, Taiwan's yarn and cloth mills are facing pressure from competition.
Until the end of last year (2019), the United States and China finally reached the first phase of a trade agreement, but it was still unable to eliminate the uncertainty of investors about future development. Brand purchases would still be conservative and the transfer order effect would still exist. In addition, at the end of the same year, COVID-19 broke out in China. The epidemic not only affected China's economy but also caused a break in the global supply chain. After that, the epidemic spread to Europe and the United States, which also caused a huge impact on the consumer market. According to IMF forecasts, the epidemic will cause global economic growth to decline to -3%. If another epidemic occurs, the global economy will suffer.

The degree of influence will increase. Looking forward to 2020, the global consumer market and retail market will be greatly impacted under the influence of COVID-19. Although Europe and the United States have gradually opened economic activities in May, whether it will cause the expansion of the epidemic and affect the global economy and trade. Pay attention. However, under the above impacts, Taiwan’s textile industry is not without room for development. It still has its advantages. It is suggested that the following points can be developed:

• Continue to make progress towards high-value and differentiated products
  In recent years, the quality and added value of Taiwan’s textiles have been greatly improved, which helps to enhance Taiwan’s the international image of the product has gradually been separated from the products of developing countries, which has widened and the gap between Southeast Asian and Chinese products. Taiwan's textile industry can achieve the purpose of differentiation by developing a variety of different high-value-added materials and producing various functional fabrics and garments in line with technology and trends, creating greater business opportunities for enterprises.
• Develop the supply chain of environmentally friendly textile raw materials
  The continuous occurrence of global warming, which poses a huge threat to human survival, has forced humans to face up this issue. Therefore, textiles with environmentally friendly characteristics have emerged in large numbers all over the world. At present, many textile companies in Taiwan have invested in the development of environmentally friendly textiles, such as nylon recycling, dope-dyed fibers, bio-environmental-friendly textiles, water-free dyed textiles, marine yarns, etc. 13 special bottles of PET textiles have established a very high reputation in the world. Global brands have increasingly higher requirements for environmentally friendly fibers and yarns. They have successively cooperated with Chinese textile mills to develop environmentally friendly fibers, yarns, and production garments, which have previously been provided for World Football Games, Olympic Games, and other competitions praise. In the future, the development of environmentally friendly textiles will receive more attention from brand owners and the market. Taiwan’s textile industry should grasp international industry trends and environmental protection norms, and conform to the world trend to consolidate and strengthen the international production and sales supply chain.
• Develop functional textiles with a sense of fashion
  With the increase of consumers' requirements for textile quality, the rise of sports trends, and the emergence of extreme climates, the development of functional textiles has potential for a broad market of business opportunities. However, while being highly functional, modern people's standards for fashion tastes are gradually increasing. In recent years, consumers have preferred a lifestyle that "combines sports, work, and life". Therefore, the demand for high-functional fashion textiles has expanded. Taiwan’s textile industry has become a global hub for the development and production of functional textiles. Coupled with the introduction of functional fashion apparel by major international brands, Taiwan should actively seek to enter a niche to expand its textile market.

Strengthen design and brand strength

Taiwan’s yarns and fabrics are highly evaluated in the global market. Almost all the world’s major well-known brands purchase Taiwanese gauze materials, especially functional products; however, Taiwan’s downstream fashion apparel design and brands still need to actively develop to obtain higher end consumer products. Profit. In addition to strengthening the grasp of fashion trends and the ability to refine the design, branding is also the path that Taiwan’s textile industry must take in the future. Brands can not only create business opportunities, but can also drive the innovation and quality of Taiwan’s yarn and cloth materials, and can deeply integrate the materials into the brand’s overall industrial chain, and Taiwan’s textile industry will surely be able to explode again.

Develop potential smart textiles

Smart textiles have become more and more popular and valued in recent years, and they are also one of the most promising key industry developments in the market. In addition to the development of wearable sports smart products in the future, in response to the aging of the population, the health care field is also a development trend. For example, smart textiles with functions, comfort, sensing, and smart interpretation will be Key development projects. Taiwan has the semiconductor industry and biomedical industry technology, coupled with the advantages of components, how to integrate and innovate in different industries is the key to driving the development of the textile industry.

Seek new southbound opportunities

In response to changes in global conditions and regional integration trends, Taiwan must make corresponding adjustments, and the new southbound policy is an opportunity for our country. Thailand, Vietnam, and Myanmar all have considerable development potential in terms of market and economic growth. In addition, they can provide a large amount of low-cost labor, which is beneficial to the labor-intensive textile industry. In addition, they have signed several FTA and other trade agreements. If Taiwan invests in local factories, it will enjoy low labor costs and trade advantages, which can even promote the breadth and depth of bilateral supply chain connections.

Develop the intelligence of the textile supply chain

Nowadays, many countries are thinking about how to promote the upgrading and transformation of the domestic manufacturing industry, corporate social responsibility, and environmental sustainability, to promote industrial development and enhance competitiveness. As a large manufacturing country, Taiwan must actively follow up and actively guide the textile industry to introduce the Internet of Things, Big data, and cloud technology, etc., implement lean and efficient production to increase productivity.