At present, Taiwan is one of the major manufacturers and exporters of textile and apparel in the world. The country has invested and developed a new technology to integrate the entire value chain of the industry.

In the beginning, Taiwan used to import raw materials and export the finished products to the overseas market. Now it is using materials derived from petrochemicals and importing raw cotton yarn and manmade staple yarn. Apparel industry of the country is highly export oriented. Approximately 75 per cent of the apparels produced are exported.

Production Value of Taiwan's Textile and Apparel Industry

Sources: Dept. of Statistics, MOEA

The total production value of textiles and apparels have significantly declined by 12.31 per cent in the last five years from $14.7 billion in 2013 to $12.9 billion in 2018. The production value has 3 components i.e manmade fibre, textiles and, apparel and made ups. In last five years, their production values have decreased by 24.09 per cent, 6.77 per cent and 19.03 per cent respectively.

But the production value of manmade fibre and textiles is improving from 2017. The values have increased with a CAGR of 2.60 per cent and 0.55 per cent from $3.2 billion and $9.1 billion in 2018 to $3.4 billion and $9.2 billion in 2021 respectively.

Manufacturers of Taiwan's Textile and Apparel Industry

The textiles and apparel factories of the country have increased.  In 2018, the textiles factories were 3519 and apparel factories were 1158. They are expected to grow at the rate of 11.25 per cent and 1.22 per cent to reach 3915 and 1172 respectively in 2021. Together, they are expected to grow at the rate of 8.77 per cent from 4677 in 2018 to 5087 in 2021. The growth rate of the textile factories is much higher than the apparel factories.

Sources: Directorate General of Budget, Accounting and Statistics, Executive Yuan (employees), Dept. of Statistics, MOEA (production value). (Central Bank of Taiwan: for year 2018, 1US$=30.1560NT$).

Employees of Taiwan's Textile and Apparel Industry

Sources: Directorate General of Budget, Accounting and Statistics, Executive Yuan (employees), Dept. of Statistics, MOEA (production value). (Central Bank of Taiwan: for year 2018, 1US$=30.1560NT$).

In 2018, employees in the textiles and apparel industry of Taiwan were 100111 and 32198 and expected to move up to 105117 and 33808 respectively in 2021 with a growth rate of approximately 5 per cent.

Average Monthly Wage of Textile and Apparel Industry

Sources: Directorate-General of Budget, Accounting & Statistics, Executive Yuan.

Average monthly wage of the textiles and apparel industry workers of Taiwan have been improving at a high rate since 2016. The average monthly wage were $1,263 and $1,090 in 2016 and increased to $1,345 and $1,245 in 2018 respectively. It is expected to surge with a CAGR of 3.21 per cent and 6.88 per cent to reach $1,479 and $1,520 in 2021 from 2018.     

Export and Import Value of Textile & Apparel Industry

Exports and imports of textiles and apparels in the country were $9,930 million and $3,350 million in 2016 and swelled to $10,070 million and $3,680 million in 2018. It is expected to rise to $10,283.71 million and $4,236.94 million in 2021 with a CAGR of 0.70 per cent and 4.80 per cent respectively from 2018.

Source: Compiled by TTF with data from Dept. of Statistics, MOFA.

Taiwan Textile and Apparel Exports by Product Type

In 2018, out of total textiles and apparel exports of the country, fabrics contributed 66.06 per cent and yarn contributed 16.63 per cent. The growth rates of fibre and yarn were considerable but declined in the case of fabrics and apparels. Also, apparel exports of the country were not much significant in 2018. The exports of fibres and yarns rose by 4 per cent and 9.69 per cent respectively in 2018 over the previous year.  

Source: Compiled by TTF with data from Taiwan Customs Statistics

Taiwan's Textile Exports to Major Markets

In 2018, the top export destinations of the country for textiles and apparels were Vietnam, China, the US, Hong Kong and Indonesia and accounted for 21.64 per cent, 19.26 per cent, 7.25 per cent, 6.45 per cent, 5.36 per cent of total exports respectively. Growth in exports were observed only in Vietnam and China in 2018 over 2017 with a growth rate of 4.80 per cent and 4.86 per cent. 

Source: Compiled by TTF with data from Taiwan Customs Statistics.

Taiwan's Exports to Main Markets by Region

In 2018, the top export regions of the country for textiles and apparels were ASEAN 10, China Hong Kong, NAFTA, EU 28, Middle East and Japan Korea, and accounted for 38.82 per cent, 24.68 per cent, 8.81 per cent, 4.49 per cent, 4.92 per cent and 4.70 per cent of total exports respectively. Growth in exports were observed only in ASEAN 10 and Japan Korea in 2018 over 2017 with a growth rate of 2.08 per cent and 3.50 per cent. 

Source: Compiled by TTF with data from Taiwan Customs Statistics

Taiwan's Textile and Apparel Imports by Product Type

In 2018, out of total textiles and apparel imports of the country, apparels contributed for 52.46 per cent. The growth rates of import of fibre and apparel remained high and climbed by 18.01 per cent and 10.97 per cent respectively in 2018 over the previous year.  

Source: Compiled by TTF with data from Taiwan Customs Statistics.

Taiwan's Textile Imports by Major Markets

In 2018, the top textiles and apparels suppliers of Taiwan were China, Vietnam, the US, Japan and Indonesia and accounted for 42.52 per cent, 12.25 per cent, 7.96 per cent, 5.00, and 3.53 per cent of total imports respectively. A very high import growth was observed in US in 2018 over 2017 with a growth rate of 22.59 per cent. 

Source: Compiled by TTF with data from Taiwan Customs Statistics.

Future of Taiwanese Textiles and Apparel Industry

1) Value addition through product differentiation

Taiwan's textile manufacturers have created high value products through differentiation, unique materials, technology and alertness to fashion trends to get more business.

2) Development of value chain with eco-friendly materials

Taiwanese textile and apparel manufacturers have started investing in eco-friendly materials such as recycled nylon, dope dyed fibre, bio-based eco-textiles, waterless dyeing processes, marine yarns etc. Among all these materials, renewable PET fabrics prepared with the help of recycled plastic bottles, have become a hit.

3) Development of functional and fashion textiles

Today's demand is more inclined towards quality of textiles. People have become more selective in purchase and usage. Taiwan, one of the top manufacturers of functional textiles, has combined the concepts of functional textiles with fashion. Smart textiles and wearable technologies are emerging in the country with demand for performance, comfort, sensing and monitoring, and intelligent interpretation, backed by advanced IT and innovative biomedical industries.

4) Building the design capacity and revamping branding

Taiwanese textiles and apparel are well-known in the global market. The big brands are also looking for Taiwanese manufacturers for functional textiles. For increased profit margins, Taiwanese manufacturers are focusing more on improving the branding of a company.

5) Intellectualising textile supply chain

Industrial upgradation and transformation, corporate social responsibility and business sustainability are the major concerns today for the Taiwanese textile industry for further development and to compete in the global market. With the support and assistance of the government, the industry intends to develop lean manufacturing, maximise production efficiency by bringing in Internet of Things (IoT), big data and cloud technologies.