SGS Testing Centers Support Southeast Asia’s Apparel Industry Boom

Posted on 2015-12-03 by EPR Network in Apparel & Fashion // 0 Comments

Hong Kong, December 3, 2015 — /EPR NETWORK/ — Southeast Asia continues to see rapid growth in the apparel industry. As production and exports increase, quality assurance networks such as those operated by SGS are called on to provide necessary testing and support.

Cambodia and Myanmar: Rising stars of apparel exports

Southeast Asia is one of the most important sourcing areas for the apparel industry. Growth in apparel exports were observed between 2012 and 2014, especially in rising star countries such as Cambodia and Myanmar. The strongest export growth has been seen in Cambodia where there was a 20% growth in the period (2012: USD 4.45 billion; 2014: USD 5.34 billion). (1) Myanmar export values reached almost 200% growth (2012: USD 900 Million; 2014: USD 1.7 Billion). (2) The boom in apparel manufacturing and exporting in these two countries is supported by the relatively lower cost of labor compared to neighboring countries as well as the preferential tariff and quota-free access to US and EU markets.

One-Stop SGS Services in Cambodia

To support the apparel industry, SGS operates a laboratory in Phnom Penh, Cambodia (3) with the capability to perform product regulatory and quality testing (such as US CPSIA, EU REACH and others), in both physical and chemical testing, inspections and audits. This laboratory will serve as a one-stop service provider to aid the local and regional apparel industry in accessing international markets.

Established Inspection Services in Myanmar

Furthermore, SGS provides garment inspection services in Myanmar. The inspection service was founded in 1948 as the first third party service provider in the country. SGS offers inspection at every stage of production to assist the apparel industry in identifying defects as early as possible and avoiding issues later in the supply chain. SGS inspection services include Initial Product Checks, During Production Checks and Final Random Inspections. SGS also offers social compliance audit services to ensure manufacturers in Myanmar are engaged in lawful, humane and ethical manufacturing. Backed by an extensive worldwide network of experienced local inspectors and auditors, SGS performs these services in other countries in the Southeast Asia region. SGS acts on behalf of buyers to help reduce sourcing risks for their clients by verifying the capability of manufacturers to meet requirements for agreed quality, quantity, safety and delivery terms.

SGS Maintains Strong Presence throughout Southeast Asia

In addition to Cambodia and Myanmar, SGS has a strong footprint spanning many core sourcing countries within Southeast Asia, including Indonesia (4), Vietnam, Thailand and the Philippines. Local apparel manufacturing industry and brands’ sourcing offices located in Southeast Asia can leverage SGS’ presence to ensure their apparel meets quality standards and applicable export market regulatory requirements for the US, the EU, and many emerging markets such as China, Korea and Taiwan.

During an interview with Mr. Spencer Yeung, Vice-President of SGS Global Softlines, he remarked that “in the past years, international brands and retailers have been making a sourcing shift to the emerging locations in Southeast Asia such as Cambodia, Myanmar and Indonesia. This shift has changed the global sourcing landscape. Furthermore, […] many investors of major manufacturing groups have been setting up factories across this region, fueling the growth of the apparel industry and the economy as a whole. Asia will remain a major player for global sourcing and SGS commits itself in this region and continues to support this industry.”

References:

(1) Garment Manufacturers Association in Cambodia – Consolidated data for garment and textile exports 2015 (http://www.gmac-cambodia.org/imp-exp/garment.php)

(2) Myanmar Garment Manufacturers Association – Export Data 2015 (http://www.myanmargarments.org/events-news/export-data/)

(3) SGS Opens New Textile Testing Laboratory in Phnom Penh, Cambodia – 16, August 2014 (http://www.sgs.com/en/Our-Company/News-and-Media-Center/News-and-Press-Releases/2014/08/SGS-Opens-New-Consumer-Testing-Laboratory-in-Phnom-Penh-Cambodia.aspx)

(4) Enhance Textile Testing Network – New Laboratory in Jakarta Indonesia – 29 September 2011 (http://www.sgs.com/en/Our-Company/News-and-Media-Center/News-and-Press-Releases/2011/09/Enhance-Textile-Testing-Network-New-Laboratory-in-Jakarta-Indonesia.aspx)

About SGS Southeast Asia
SGS Southeast Asia offers a full array of chemical and material testing services (http://www.sgs.com/en/Consumer-Goods-Retail/Softlines-and-Accessories/Textile-and-Clothing/Testing/Material-Testing.aspx), audits, inspections and technical consultancy to its customers. Leveraging its global network, together with knowledge, expertise and service orientation, SGS ensures service delivery is best-in-class in this region.

Component testing: Fabric, trims and such as button, cuff etc.

Finished product testing (Apparel, footwear, leather goods, etc.): Physical performance and restricted substance testing (e.g. REACH, SVHC, CPSIA, GB and other countries’ regulations)

Inspection: Initial Product Checks, During Production Checks and Final Random Inspections

Supply Chain Solutions: Social compliance audit, technical audit, technical training and consultancy services

For further information, please contact an SGS expert.

SGS is the world’s leading inspection, verification, testing and certification company. SGS is recognized as the global benchmark for quality and integrity. With more than 80,000 employees, SGS operates a network of over 1,650 offices and laboratories around the world.

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