Hong Kong's textile and garment sector is attempting a systematic overhaul to align with the national 15th Five-Year Plan, covering supply chain management, branding, and AI applications. On July 14, industry stakeholders jointly released the "Textile and Garment Industry Plan for Creating New Hong Kong Advantages," featuring six major policy recommendations aimed at upgrading the industry from a follower to a global leader. The report, authored by HKUST's Li & Fung Supply Chain Research Institute and guided by the China National Textile and Apparel Council (CNTAC), was supported by the Hong Kong Textile Business Association and multiple industry groups.
Institutional Upgrades and Financing Activation
Legislative Council member Chan Chun-hing proposed two key recommendations: upgrading the Clothing Industry Training Authority into a coordinating executive body to serve as a unified window for liaising with national ministries, and expanding the definition of "procurement center" within the government's framework for enhancing Hong Kong's role as a corporate treasury hub. This adjustment, though technical, would directly stimulate trade finance demand by attracting multinational procurement centers to base or return to Hong Kong, channeling financial resources into local SMEs and revitalizing the ecosystem.
Fashion Hub and Talent Openness
Lawson Law, chairman of the Hong Kong Textile Industry Federation, positioned fashion as a vehicle for Chinese cultural soft power, proposing an open policy of "whoever comes is a Hong Kong enterprise, whoever lands is Hong Kong talent" to attract global fashion professionals. The strategy aims to lock international designers into long-term partnerships with local supply chains. The industry also expects the government to scale up flagship events like "Hong Kong Fashion Fest" and integrate fashion with film and music. A long-term goal is to transform Sham Shui Po into a regional fashion landmark, activating the local economy.
AI+Textile Implementation Path
Wong Ting-chung, supervisor of the Hong Kong Textile Business Association, emphasized that the textile sector is already a key part of new productive forces, with IoT and AI deeply embedded. He proposed an "Industry AI Application Acceleration Plan" to subsidize fine-tuning of general AI models for textile-specific tasks, sharing upfront R&D costs. A fast-track "AI+Textile" channel would simplify approval processes for joint applications from industry and local AI firms, with phased funding based on results. Chen Wing-on, chairman of the Clothing Industry Training Authority, added talent-focused recommendations: increasing AI skill training subsidies for SMEs, enhancing the Continuing Education Fund; deepening cooperation between firms and public institutions for digital transformation guidance; and optimizing the Trade and Industry Support Fund to build an "AI Tool Library" managed by industry organizations, with expert oversight to prevent IP leakage.
Implications for Buyers and Exporters
For buyers, if Hong Kong successfully transforms into a "procurement hub + trade finance center," it will mean shorter payment cycles, more flexible letter of credit arrangements, and lower supply chain friction costs. For exporters, the AI Tool Library and fast-track approval will directly lower the digitalization threshold for SMEs—customized AI solutions that once cost millions may become accessible through shared industry models.
For Buyers - Monitor the "CTC+ model" progress; if multinational procurement centers return, prioritize Hong Kong as a regional settlement and trade finance hub. - Watch for shared AI models under the fast-track channel, which may reduce communication costs for factory audits and quality checks.
For Exporters - Actively engage with the upgraded Clothing Industry Training Authority for digital transformation guidance and AI skills training. - Apply for shared AI solutions under the Trade and Industry Support Fund's AI Tool Library to reduce individual R&D risk.
This plan represents Hong Kong's effort to upgrade from a "processing trade transit hub" to a "tech-and-fashion dual-engine super value-added platform" amid global supply chain restructuring. Its success hinges on the government's response in the next five-year planning cycle.