The Sourcing Practice in Hong Kong 

Hong Kong’s textiles and clothing (T&C) industries are undergoing new changes as quotas have been eliminated from January 2005. However, protectionist undercurrent still prevails particularly from the United States, which is the largest textile and clothing (T&C) importer for Hong Kong. As example, the trade remedy by the US on the T&C products originated from China and also the Chinese government imposing export tariff on the T&C products destined to US as an anti-dumping measure.

The mainland China used to be the major sourcing centre of T&C products to Hong Kong.  In 2004, Hong Kong’s re-exports of T&C of mainland-origin to the global market represented more than 95% of Hong Kong's total exports of T&C.  The economic loss is foreseen if Hong Kong maintains to source in similar quantity from the Mainland China.  In 2004, Hong Kong re-exported T&C products to the world were valued at US$15,349 million.

 Hong Kong Import and Export Trade Statistics of Apparel Products 

 

2004

% Change

2003

% Change

2002

% Change

Total Import

15,981.3

6.5

15,009.7

1.5

14,787.4

-2.1

Import from Malaysia

8.5

7.3

8

-14.3

9.3

-18.5

Total Export

23,446.3

7.9

21,729.8

3.1

21,072.5

-4.2

Export to Malaysia

58.0

-4.0

60.5

2.9

58.7

-11.7

Unit : USD Million

The Hong Kong government is now encouraging the local T&C traders and manufacturers to globalize their sourcing and manufacturing activities.  Therefore, the local traders now begin looking for new oversea suppliers through recommendation by trade commissions in Hong Kong and by visiting international trade fairs in Hong Kong and abroad.  Moreover, the Hong Kong manufacturers are encouraged to do more outward processing such as sourcing OEM products from overseas to avoid relying on their production in the Mainland China.

This development provides a good opportunity for Malaysian T&C suppliers to tap in Hong Kong market and through the Hong Kong traders to export their products to the European market.  In 2004, Hong Kong imported T&C products from Malaysia valued to US$8.5 million. Malaysian suppliers could also participate in related trade fairs in Hong Kong to approach Hong Kong buyers such as Source It , Intersoff, HK Fashion Week etc. 

  (Market Report from Matrade, Hong Kong)

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