Discussion session: Textile investment environment comparison and analysis
¡ª¡ªChina, Xinjiang China, India, Vietnam and Taiwan China

Fan Zhihong from Textile Industry Management Office, Nguyen Van Tuan--Chairman of VCOSA, Huang Weiji--Secretary General of Taiwan Textile Federation and Mr. Ravi from the Cotton Textiles Export Promotion Council of India discussed on advantages of different areas, the influence of TPP and salaries of textile workers. 

I. Advantages and core competitiveness comparison by region 
(1). India as a big cotton producing country has feedstock advantage as well as price advantage, attracting spinners to invest in the country, contributing to fast growth of Indian capacity. 

(2). Xinjiang spinning industry plays an important role in employment and social stability. Xinjiang as China's major cotton planting area whose production occupies 60% of total, coupled with good quality. Meanwhile, some leading companies inland also invest in Xinjiang, so there are capital, facility, comprehensive cost and innovation advantages in local market. 

(3). Taiwan spinners mainly produces TC and CVC, emphasizing on functionality. Future development is to cater to TPP, attracting many spinners and cotton textile mills to build plants in Vietnam. 

(4). Volume of spinning yarn is growing fast in Vietnam. Given lower labor cost (1/3 of China's) of Vietnam, yarn cost is lower. Meanwhile, tax deduction is available for exporting to China and there is tax reference for investing in Vietnam. 

II. Opportunity of TPP 
Mr. Ravi pointed out that cotton yarn will be hard to enter Chinese market after TPP takes effect. Mr. Fan said that semi-finished products are mainly produced in Xinjiang and 12-20% tax will be levied for export. Mr. Huang anticipated that Indonesia is likely to join in TPP. 

III. Monthly salary of textile workers 
There are big divergences of textile worker's salaries in different regions. Vietnam: 250USD; Taiwan: 1150USD (1400USD if adding 30% insurance); India: 250-300USD; small plant in Xinjiang: 1,800-2,200RMB; Urumqi: 3,000RMB. There is higher salary in larger plant.