What is happening in the old local industry: Case study of textile industry in Taiwan- A framework based on comparable cases

Textile industry in Taiwan seems to have declined in recent decades. The gross production from 2005 to 2019 declined 27.7%. In addition, the export of textile and textile products have also declined.  In this circumstance, the government, public research institutions (PRI), and commercial oriented non-profit organizations (NPO) try to provide some solutions. For example, there are three projects provided by the industrial development bureau in the ministry of economics in 2019. And the total budget of these projects is 75 million NTD.

On the other hand, some old textile clusters like Hemei Zhan, a town in Changhua county, might still struggle. At Hemei Zhan, the weaving industry is dominated, with most of the firms being SMEs. In the middle 1980s, the textile industry in Hemei Zhan took some strategies to face the changing, like importing immigrant labor, or changing the production network. (王瓊足, 2000)

To learn intellectually from the case at Hemei, it is required to make comparisons with other cases, rather than just list the strategies the firms at Hemei took. If it is assumed that the challenge the Textile Industry at Hemei faced is due to the global value chain (GVC) shift, then a few strategies for those under similar situations can be found. For example, some SMEs in the Textile Industry in Taiwan connect to GVC with the smart application. (Chun-Liang Chen, 2019)   

The presentation will divide into three parts as follows,

  1. Recap: Introduce the textile industry at Hemei Zhan
  2. Framework: Provide a framework based on the comparable strategies from the literature
  3. Interview Plan: Share the progress of interviews

Chuan Huang

A Research Fellow in Rural Development and Revitalization