Summary: The textile industry is one of China’s key pillar industries. As the economy develops, the demand for textiles continues to rise, leading to growth in the industry’s output value. In 2022, the total output value of textile enterprises above a designated size in China reached 2,802.64 billion yuan, an increase of 60.28 billion yuan compared to 2021. The total assets amounted to 2,250.84 billion yuan, up 114.84 billion yuan from 2021.
1. Industry Overview
The textile industry primarily involves processing raw materials such as cotton, wool, and silk into everyday products like clothing. The industry encompasses eight categories: cotton textile and dyeing processing, wool textile and dyeing processing, linen textile and dyeing processing, silk textile and dyeing processing, chemical fiber weaving and dyeing processing, knitting or crocheting manufacturing, home textile products manufacturing, and industrial textile products manufacturing, divided into 26 subcategories.
The textile industry is not only a traditional important industry in China but also a pillar of China’s foreign trade, contributing significantly to the national economic development. In recent years, to promote the better and faster development and transformation of the textile industry, the state and relevant departments have successively introduced relevant policies for the textile industry.
2. Development Status of the Textile Industry in Other Countries and Regions – Vietnam
Over the past 30 years, Vietnam has transitioned from an agricultural economy to an industrial and service-oriented economy through political and economic reforms, especially over the past decade, attracting foreign investment. This has led to rapid economic development, making Vietnam one of the fastest-growing economies in Southeast Asia and gradually moving towards an industrialized developing country. Various data indicate that Vietnam is becoming an important global manufacturing hub.
The textile and apparel industry is a pillar industry in Vietnam. In Vietnam’s industrial economic development strategy, the textile and apparel industry plays a crucial role in its economic structure, significantly contributing to job creation and exports. Statistics show that over 20% of employment in Vietnam’s industry is created by this sector. Preliminary data from the Vietnam Customs Information and Statistics Department of the Ministry of Finance shows that Vietnam’s textile and apparel exports reached $37.566 billion in 2022, a 14.7% increase from the previous year.
The United States is the largest export destination for Vietnam’s textiles and apparel. In 2022, Vietnam exported $17.359 billion worth of textiles and apparel to the US, accounting for about 46.20% of the market share, followed by Japan and South Korea, with exports of $4.072 billion and $3.309 billion, respectively, accounting for 10.84% and 8.81% of the market share.
3. Development Status of the Domestic Textile Industry
The textile industry is a traditional industry with a long history, marking human civilization’s progress. With technological and economic development, the textile industry has been continuously evolving. China has long held a significant competitive and developmental advantage in the global textile industry, occupying a leading position. It is not only the largest producer but also has the most complete industrial chain and the widest range of categories. In 2022, the number of textile enterprises above a designated size in China reached 20,108, an increase of 1,379 compared to 2021.
The textile industry is one of China’s key pillar industries. As the economy develops, the demand for textiles continues to rise, leading to growth in the industry’s output value. In 2022, the total output value of textile enterprises above a designated size in China reached 2,802.64 billion yuan, an increase of 60.28 billion yuan compared to 2021. The total assets amounted to 2,250.84 billion yuan, up 114.84 billion yuan from 2021.
The textile industry in China is highly labor-intensive and has a significant dependence on foreign trade. China is the world’s largest producer and exporter of textiles and apparel. In recent years, the textile industry, as a traditional sector in China, has made significant contributions to promoting the national economy. Statistics show that in 2022, the sales revenue of China’s textile industry was 2,615.76 billion yuan, an increase of 44.34 billion yuan compared to 2021, while profits were 100.08 billion yuan, a decrease of 20.23 billion yuan from 2021.
Compared to other industries, the textile industry in China has adopted information technology relatively early. After decades of development, it has now entered a stage of deep integration between informatization and industrialization. The information technology transformation in the industry is an important way to enhance enterprise competitiveness and drive industry growth. In the first year of the 14th Five-Year Plan, the textile industry accelerated the development of intelligent manufacturing, with many pilot demonstrations in the textile sector. In 2022, the market size of informatization in China’s textile industry reached 23.84 billion yuan, including 13.59 billion yuan for hardware, 7.15 billion yuan for software products, and 3.1 billion yuan for services.
Related Report: “2024-2030 China Textile Industry Development Strategy and Investment Direction Research Report” by ZhiYan Consulting
4. Industry Chain
1. Industry Chain Structure
The textile industry includes processes such as cotton, chemical fibers, textile manufacturing, clothing manufacturing, and sales, forming a vast and complex system. Since the 18th National Congress of the CPC, China’s textile industry has achieved a leap from quantitative accumulation to qualitative improvement, forming the world’s largest, most complete, and continuously upgrading textile industry chain. The upstream of the textile industry includes raw materials and textile machinery; the midstream includes textile processing and product manufacturing; the downstream includes various marketing and distribution channels, ultimately reaching end consumers.
2. Upstream – Cotton
Cotton is one of the earliest textile raw materials used in China. Since the 20th century, with the expanding demand for cotton in the international market and the domestic cotton textile industry, China’s cotton planting area and output have seen new increases. In 2022, China’s total cotton output was 5.982 million tons, an increase of 251,000 tons from 2021.
3. Downstream – Textile and Apparel
Textile apparel refers to clothing made from textiles, while textiles involve weaving fibers or yarns into fabrics, knits, etc. Thus, apparel and textiles are closely related. According to data from the National Bureau of Statistics, the total retail sales of clothing, shoes, hats, and knitted textiles above the designated size in 2021 reached 1,384.2 billion yuan, a year-on-year increase of 12.7%. In 2022, the total retail sales of clothing, shoes, hats, and knitted textiles above the designated size decreased by 6.5% year-on-year.
5. Competitive Landscape
1. Industry Development Trends
The textile industry is one of the earliest and longest-lasting industries. In modern times, the textile industry continues to play a vital role in our lives. In recent years, as the economy develops, the demand for textiles has continued to rise, leading to continuous growth in the industry’s output value. At the same time, the technical level of the textile industry has been constantly improving, with more technologies being applied to the design and production of textiles, significantly enhancing the quality and appearance of textile products. Additionally, the textile industry’s industrial chain has been continuously improving, from raw material production to finished product sales, providing a solid foundation for the industry’s development.
As people’s demand for quality of life increases, the demand for textiles will continue to grow. Meanwhile, the technical level of the textile industry will keep improving, with more technologies applied to the design and production of textiles, further enhancing the quality and appearance of textile products. In the future, the textile industry needs to continuously innovate and develop to meet consumer needs while enhancing its competitiveness and influence. In recent years, China’s textile industry has gradually introduced advanced international technologies and production equipment, improving product quality and production efficiency, and has broad development prospects in the future.
The above data and information are referenced from the “2024-2030 China Textile Industry Development Strategy and Investment Direction Research Report” by ZhiYan Consulting. ZhiYan Consulting is a comprehensive provider of information and intelligence in the field of Chinese industrial consulting. The company’s brand philosophy is “Driving industrial development with information, empowering enterprise investment decisions.” They provide professional industrial consulting services, including boutique industry research reports, customized reports, monthly specials, feasibility reports, business plans, industrial planning, and more. They offer regular reports such as weekly, monthly, quarterly, and annual reports and customized data, covering policy monitoring, enterprise dynamics, industry data, product price changes, investment and financing overviews, market opportunities, and risk analysis