ASEAN Becomes New Destination for Qingdao Textile and Garment Enterprises

Thanks to the favorable policies of the China-ASEAN Free Trade Area, Southeast Asia is emerging as a popular destination for Qingdao-based companies looking to invest and establish manufacturing operations abroad. According to the Municipal Bureau of Commerce, two more Qingdao firms have recently launched production projects in Laos and Vietnam this August.

The two companies, both in the textile and apparel industry, will set up factories in the Pingyang Science and Technology Environmental Protection Industrial Park in Vietnam and the Capital Industrial Park in Vientiane, Laos. They plan to produce and process garments and textiles with a combined investment of $230,000. The annual output is expected to reach 1.7 million pieces, with products primarily exported to Southeast Asia and Africa.

A senior official from the Qingdao Municipal Bureau of Commerce noted that since the completion of the China-ASEAN Free Trade Area, the number of investment projects from Qingdao to ASEAN countries has been steadily increasing. This trend is particularly evident in industries like textiles and apparel, which are undergoing restructuring domestically. To date, Qingdao has launched 52 investment projects in ASEAN nations, making up 10% of the city's total foreign investment projects, with a cumulative investment of $51.94 million.

This growing trend highlights the strategic importance of Southeast Asia for Qingdao’s businesses, as they seek to expand their global footprint while benefiting from preferential trade agreements and lower production costs. With continued policy support and market access, more companies are likely to follow suit in the coming years.