In a powerful display of regional collaboration, representatives from five Southeast Asian nations came together at the Intertextile Shanghai Apparel Fabrics, Autumn Edition (September 2-4, 2025) to spotlight the immense investment opportunities within ASEAN's changing trade environment. The session, titled "Opportunities in ASEAN in Changing Trade Environment," brought together textile and apparel association leaders from Cambodia, Malaysia, Myanmar, Thailand, and Vietnam, along with key industry figures from China and Germany.

The forum's central message was clear: ASEAN is no longer just a manufacturing hub but a strategic, integrated ecosystem primed for growth, innovation, and sustainability. As global supply chains recalibrate amidst geopolitical tensions and rising costs, the region is positioning itself as a reliable and competitive alternative for global textile and apparel brands.

A shifting global landscape

The session was opened by Xu Yingxin, Vice President of the China National Textile and Apparel Council (CCPIT-TEX), who highlighted the growing trade relationship between China and ASEAN. "For four consecutive years, the East China Sea [ASEAN] has become China's largest trading partner in the textile industry," Xu said. He noted that in 2024, China and ASEAN's textile trade reached a total of $596.5 billion, a 6.7% growth rate. From 2013, China's textile industry has accumulated over $5.6 billion in direct investment in the region.

Olaf Schmidt, Vice President of Messe Frankfurt, echoed this sentiment, emphasizing the company's role in fostering these connections. He pointed to the launch of VIATT event in Vietnam in 2024, an exhibition aimed at connecting the entire textile supply chain, which has seen a 20% increase in exhibition space for its third edition.

Dato’ Shri Tan, a chief delegate from the ASEAN Federation of Textile Industries (AFTEX), presented a compelling case for ASEAN as a comprehensive ecosystem. He cited the region’s strategic location, providing access to 670 million consumers, competitive manufacturing costs, world-class infrastructure, and a business-friendly regulatory environment. Dato' Shri Tan urged companies to see the region as a gateway to new markets and a partner for innovation, especially in the areas of sustainability and technology.

Key Country Spotlights: Data and opportunities

Regina Leong, Permanent Secretary General of AFTEC, introduced and invited presentations from the represented nations offering a detailed look at their individual strengths, showcasing a diverse range of investment opportunities.

● Cambodia: As a ‘Least Developed Country (LDC)’, Cambodia offers significant trade preferences for exports to major developed countries. The country's textile and apparel sector employs nearly 1 million workers, with a competitive minimum wage of $100 per month. Exports in 2024 reached $13.7 billion, with the U.S. and EU being the largest markets. The government provides attractive tax incentives, including a three-year income tax exemption for new investors, and a commitment to not increase electricity prices. The country boasts a young workforce, with 60% of the population under 35.

● Malaysia:

With a population of 35 million and a projected GDP growth of 4-4.5% in 2025, Malaysia is positioning itself as a gateway to the broader Asia-Pacific market. The country has a long history in the textile industry, dating back to the 1970s, with a complete value chain from fiber to finished garments. While the textile industry contributes only 0.3% to its GDP, its political stability and advanced infrastructure make it an attractive location for high-quality, quick-delivery manufacturing. The total export in 2024 was $3.45 billion.

● Myanmar: Chin Foo from the Myanmar Garment Manufacturer Association (MGMA) highlighted the country's cost-effectiveness and skilled workforce. With a minimum wage of $100 per month, Myanmar offers a competitive pricing structure. The country's garment sector is a key driver of economic development, and while facing some challenges, it presents a new market opportunity for buyers looking to diversify their supply chains. The majority of factories work with the EU, with only 4% impacted by U.S. tariffs.

● Thailand:

Thailand's representative, Nutra Uttamapinant from the Federation of Thai Textile Industry, emphasized the country's dual economic structure, with strong manufacturing and a growing service and retail sector. Thailand is attracting investment in BCG (Bio-Circular-Green) and Digital Creative industries, with government incentives for new technologies like textile-to-textile recycling. The country is also making a push to attract skilled labor and long-term residents with its new "Smart Visa" and "Global Citizen Visa" programs. The top export markets for Thai textile clothing are the U.S., Japan, and Vietnam.

● Vietnam:

Nguyen Thi Tuyet Mai, Vice General Secretary, the representative from the Vietnam Textile & Apparel Association (VITAS), described Vietnam as a "dynamic and interesting nation." With a politically stable environment, a GDP growing at 5-6% annually, and a population of over 100 million, Vietnam is a major player. It is one of the world's top three garment exporters, with an annual turnover of over $40 billion. Vietnam's extensive network of Free Trade Agreements, including the CPTPP and EVFTA, provides significant tariff advantages. A critical challenge and opportunity remains the country's dependence on imported raw materials, making it a prime location for investment in green dyeing, fabric production, and recycling initiatives.

An integrated future

The forum concluded with a unified call to action. The ASEAN Federation of Textile Industries (AFTEX) and its member associations are committed to fostering deeper business-to-business partnerships and creating an integrated, digital value chain.

As Dato’ Shri Tan eloquently stated, "The future of textile is being written right here, right now. Join us, invest with us, grow with us." This collective vision of a sustainable, innovative, and collaborative future positions ASEAN as a formidable force in the global textile and apparel industry, ready to pioneer the next wave of transformation.