The Hong Kong textile and garment sector recently released a research report titled 'Solutions to Create New Advantages for Hong Kong's Textile and Garment Industry,' proposing six major development strategies to proactively align with the national 15th Five-Year Plan. The report, authored by the Li & Fung Supply Chain Research Institute at the Hong Kong University of Science and Technology, with guidance from the China National Textile and Apparel Council (CNTAC), aims to help the industry transition from 'following' to 'leading.'
Background: From Passive Adaptation to Proactive Planning
The timing of the report's release is significant—it comes as China prepares its 15th Five-Year Plan, which emphasizes optimizing and upgrading traditional advantageous industries. Rather than passively adapting to policies, Hong Kong's textile sector is now proposing a systematic set of recommendations covering supply chain management, product design, brand development, and professional services. This shift reflects the industry's ambition to upgrade from a 'super connector' to a 'super value-adder' within the global supply chain.
Hong Kong Legislative Council member Chan Chun-kwong stated at a press conference that the textile industry is a 'sunrise industry' with immense potential, not a sunset one. This assessment is grounded in China's global leadership in textiles—the country is the world's largest producer and exporter of textiles, with Hong Kong playing a crucial role as a trade, financing, and design hub.
Industry Impact: The Core Logic of the Six Strategies
The report's core recommendations can be grouped into three levels: functional upgrading, hub construction, and technological empowerment.
First, in functional upgrading, the industry suggests elevating the role of the Clothing Industry Training Authority (CITA) to an executive body responsible for coordinating industry development and serving as a liaison with national authorities. This implies that Hong Kong needs a stronger coordination entity to implement national policies and allocate resources. Additionally, the industry recommends that the HKSAR government expand the definition of 'procurement centers' and 'procurement activities' under its initiative to enhance Hong Kong's competitiveness as a corporate treasury hub, creating a 'CTC+ model.' This move aims to attract or bring back multinational sourcing hubs to Hong Kong, generating substantial trade finance demand and revitalizing the SME ecosystem.
Second, in hub construction, Hong Kong Textile and Garment Industry Federation Chairman Law Ching-kit proposed adopting an open attitude to attract global fashion talent, treating 'whoever comes as a Hong Kong enterprise and whoever lands as a Hong Kong talent.' The industry hopes to continue expanding flagship events like 'Hong Kong Fashion Fest' in conjunction with 'CENTRESTAGE,' promoting cross-sector integration of fashion with film, television, and music. Long-term plans include developing Sham Shui Po into a regional fashion landmark to activate the local economy.
Third, in technological empowerment, the industry suggests establishing an 'Industry AI Application Acceleration Program' to subsidize the fine-tuning of general AI models for textile applications, sharing initial R&D costs. It also recommends simplifying existing funding approval processes and creating a fast-track 'AI+Textile' channel, allowing industry players to jointly apply with local AI companies. CITA Chairman Chan Wing-on added that building proprietary AI solutions requires significant investment, and SMEs urgently need government support. He proposed increasing AI skills training subsidies, deepening collaboration with public institutions like the Hong Kong Productivity Council, and optimizing the 'Trade and Industrial Organization Support Fund (TSF)' to build an 'AI Tool Library' that mitigates IP risks while fostering a digitally skilled workforce.