A Study on the Development and Competitiveness of Textile Industry in Taiwan
Date Issued
2011
Date
2011
Author(s)
Chen, Yung-hsiung
Abstract
Textile industry stands a significant position in Taiwan. The industry structure around manmade fabric gradually developed in recent two decades. From the petrochemical industry composed by fabric factories in upstream, sinning, weaving and dyeing-and-finishing in the midstream to the textile industry in the downstream, we not only created cluster effect but also built a highly-competitive international industry network. Recently, due to multiple reasons, the textile industrial migration in Taiwan is getting more and more serious, especially after 1989 when China released its investment policy. With the advantages of cheap labor and abundant resource, it caused a serious magnet effect of China and the deindustrialization of Taiwan. The way how textile industry in Taiwan finds the competitive advantage and creates pioneering strategy continuously becomes a topic worth to discuss. Since I have worked in textile industry for 30 years, and have deep understanding and experience in the entire industry, in this research, I use long term participant observation method, with both the view of a manager and developer to discuss the development, change and competency of Taiwanese textile industry in the past twenty years.
This research adopted time series analysis to discuss the structural change and its causality reason of textile industry in Taiwan, and to explain the development of stages from growing, decline, migrating, and changing. Through the discussion of the co-opetition in cross-strait, we come out the long-term development direction and Competitiveness of textile industry in Taiwan.
With the research, we make the following conclusion: 1. While textile industry in Taiwan had emmigrated to Nicaragua and Mexico because of “quota restriction”, and moved to China and Vietnam with the consideration of “cost” after 1989, the textile industry in Taiwan enlargerd the investment in the “domestic market” in China after 2000. 2. China and those thriving countries had the advantage over amount, type and price in the past, but they also face the rising cost in labor and environmental protection. We can foresee the advantage would no longer exist in the future, and Taiwan still has competitive conditions and opportunities. 3. Heading for the future, textile industry in Taiwan should focus on high additional value, excellent quality and market segregation, change the concept from working alone to the strategic alliance by integrating upstream, midstream and downstream, and abandon the idea of taking China as the only way out. By making high-technology involved in traditional industry, investing in R&D actively and building up our own brand and channel, we can see the bright future and the worldwide market for textile industry in Taiwan.
Subjects
Textile industry
Industrial migration
Skill improvement
Co-opetition
Competitiveness
Type
thesis
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