On July 14, Hong Kong's textile and garment sector formally released a research report titled 'Textile and Garment Industry Scheme to Create New Advantages for Hong Kong' during a press conference, along with six major development strategies. This report is not a simple industry appeal but an attempt to deeply anchor the future of Hong Kong's textile industry with the national 15th Five-Year Plan's industrial optimization priorities.
Strategic Positioning and Coordination Upgrades
The report was authored by a team from the Li & Fung Supply Chain Research Institute of the Hong Kong University of Science and Technology, with guidance from the China National Textile and Apparel Council (CNTAC) and support from multiple industry associations including the Hong Kong Textile Business Association and the Federation of Hong Kong Textile and Garment Industries. One core demand is to upgrade the existing 'Clothing Industry Training Authority' into a coordinating executive body that can interface with national industry authorities. The underlying logic is clear: Hong Kong's textile industry needs a 'central brain' to maximize policy and resource efficiency, rather than multiple fragmented functions. Legislative Council member Chen Zuheng emphasized during the launch that this move aims to give Hong Kong a more efficient interface in the process of China's textile industry transitioning from 'following' to 'leading globally'.
Another key focus is activating the trade financing ecosystem. The industry recommends that when the SAR government enhances the competitiveness of Hong Kong as a corporate treasury hub for multinationals, it should expand the definition to include 'sourcing centers' and 'sourcing activities', creating a 'CTC+ model'. This means that when multinational sourcing centers establish or return to Hong Kong, they will generate substantial trade financing demand, attracting financial resources and directly benefiting local SMEs. For an industry long reliant on its intermediary role in trade, this is not just an upgrade but a reshaping of the synergy between finance and the real economy.
Dual Track: Fashion Hub and AI Applications
On the industry format front, Kenneth Lo, President of the Federation of Hong Kong Textile and Garment Industries, proposed building an 'international textile and fashion hub' with an open attitude to attract global design talent, encapsulated by the phrase 'whoever comes is a Hong Kong enterprise, whoever lands is a Hong Kong talent'. Specific initiatives include scaling up flagship events like the 'Hong Kong Fashion Fest' which combines with 'CENTRESTAGE', and promoting cross-sector integration with film, television, and music. Long-term, the industry even suggests planning Sham Shui Po as a regional fashion landmark to stimulate the local economy and create new tourist attractions. This essentially redefines Hong Kong's competitive dimension in textiles through cultural soft power.
Simultaneously, digital transformation is elevated to a strategic priority. Wang Tingcong, Supervisor of the Hong Kong Textile Business Association, noted that the textile and garment industry is already a significant part of new productive forces, with IoT and AI technologies widely adopted. The industry proposes two directions: first, establishing an 'Industry AI Application Acceleration Plan' to subsidize the fine-tuning of general AI models for the textile sector, sharing upfront R&D costs; second, creating a fast-track 'AI + Textile' channel to simplify subsidy approval processes, allowing joint applications from industry and local AI companies, with phased funding based on outcomes.
Chen Yongan, Chairman of the Clothing Industry Training Authority, added urgency on the talent front. He suggested increasing training subsidies for AI skills among SMEs, improving the 'Continuing Education Fund' mechanism, and encouraging textile companies to deepen cooperation with public institutions. More specifically, he proposed optimizing the management of the 'Trade and Industry Support Fund' (TSF), having industry organizations lead the creation of an 'AI Tool Library' with expert review and project oversight to prevent intellectual property leakage. For SMEs with limited funding and technical capabilities, this kind of public infrastructure for AI support could be key to bridging the digital divide.
Practical Impact on Buyers and SMEs
From a supply chain perspective, Hong Kong's proposed strategies are not isolated local actions. They directly respond to the new demands of global buyers for compliance, efficiency, and risk management in the context of supply chain restructuring. By upgrading coordination bodies and activating trade financing, Hong Kong aims to provide buyers with a more stable financial and administrative environment, reducing transaction friction costs. Meanwhile, the accelerated adoption of AI means supply chain digital collaboration will deepen, allowing buyers to access more accurate delivery forecasts and quality monitoring data.
For Buyers - Monitor the progress of the 'CTC+ model' implementation; if realized, it will significantly lower the operating costs and financing barriers for multinational sourcing centers. - Evaluate the maturity of Hong Kong's local AI Tool Library, which could become an important reference standard for supply chain digital audits in the future.
For SMEs - Actively apply for the 'Industry AI Application Acceleration Plan' or the 'AI + Textile' fast track, leveraging government subsidies to share the upfront costs of digital transformation. - Strengthen collaboration with public institutions like the Clothing Industry Training Authority and the Productivity Council to access free digital transformation guidance and training resources. - Monitor the launch of the 'AI Tool Library', prioritizing standardized AI solutions that have undergone expert review to reduce intellectual property risks.
Overall, Hong Kong's textile industry strategy is essentially repositioning itself within the framework of the national 15th Five-Year Plan: from a mere trade transit hub to a 'super multiplier' integrating finance, technology, design, and fashion. Whether it can be truly realized depends on the SAR government's speed in resource allocation and process simplification, and on the industry's ability to find a sustainable business loop between AI and traditional manufacturing.