Hong Kong's textile and garment industry is attempting to shed its stereotypical role as a 'middleman' and pivot toward a more technologically advanced and brand-driven identity. A research report released on July 14 outlines six major development strategies, with the core goal of transforming the traditional sector from a 'super connector' to a 'super value-add' under the framework of the national 15th Five-Year Plan.
The report, titled 'A Plan to Create New Advantages for Hong Kong's Textile and Garment Industry,' was written by a team from HKUST's Li & Fung Supply Chain Research Institute, with the China National Textile and Apparel Council (CNTAC) as the guiding unit. It is not a simple list of policy suggestions but reflects a deep-seated judgment: if Hong Kong's textile industry continues merely as a trade intermediary, its value will be diluted as mainland supply chains increasingly connect directly with global markets. Thus, upgrading the industry's governance structure is prioritized.
Governance Upgrade and Financial Ecosystem Activation
One of the most operational recommendations is to elevate the functional positioning of the 'Clothing Industry Training Authority' (CITA). Traditionally a skills-training body, it is proposed to be upgraded into an executive agency coordinating industry development and serving as a liaison window with national industry authorities. This implies that the industry aims to establish a more efficient policy transmission mechanism to align local actions with national strategies.
Financial recommendations are equally direct. Hong Kong, as an international financial center, has seen its trade finance function challenged by neighboring regions. The report suggests that when the SAR government enhances the competitiveness of multinational corporate treasury hubs, it should expand the definition to include 'sourcing centers' and 'sourcing activities,' creating a 'CTC+ model.' This move aims to attract multinational sourcing centers to set up or return to Hong Kong. For small and medium-sized textile enterprises, the clustering of sourcing centers means more abundant trade finance supply and a more vibrant local business ecosystem, effectively alleviating the long-standing pressure on capital turnover.
From Processing Base to Fashion Hub: Industrializing Cultural Soft Power
The industry's vision extends beyond production. The Hong Kong Textile and Apparel Federation's proposal to build an 'International Textile and Fashion Hub' targets the higher end of the value chain. The core logic is that fashion is not just a commodity but a carrier of cultural soft power.
Specific paths include attracting global fashion talent with an open attitude of 'whoever comes is a Hong Kong enterprise, whoever lands is a Hong Kong talent,' and promoting deep integration between international designers and local supply chains. This 'designer + manufacturing' hybrid model has successful precedents in Italy and France, and Hong Kong seeks to replicate this path. Flagship events like 'Hong Kong Fashion Fest' are expected to enhance Hong Kong's fashion discourse power through cross-border integration of fashion with film, television, and music, telling Chinese stories in internationally accepted ways. In the long run, planning Sham Shui Po as a regional fashion landmark is a more ambitious 'city as a runway' plan, aiming to activate the local economy and create new tourism highlights.
AI Empowerment: Digital Survival for SMEs
AI's role in new quality productive forces is widely discussed, but Hong Kong's textile industry recommendations are more practical. The report proposes two directions: first, 'based and implementable,' meaning the government subsidizes the fine-tuning of general AI models for the textile industry, sharing initial R&D costs; second, 'leveraging external resources,' meaning setting up an 'AI+Textile' fast track to simplify approval processes, allowing companies to jointly apply for funding with local AI firms and receive phased payments based on results.
Supplementary suggestions from the CITA chairman address SME pain points directly. Building proprietary AI solutions requires significant investment, which SMEs lack in both capital and talent. Therefore, suggestions include increasing AI skills training subsidies, deepening cooperation with public institutions, and optimizing the 'Trade and Industrial Organisation Support Fund' (TSF) to build an industry-shared 'AI Tool Library.' These measures aim to lower the technology threshold and prevent further industry polarization during digital transformation.