Chinese yarn, fabric and garment maker Texhong Textile Group is considering investing in a production facility in the Philippines, according to the country's Department of Trade and Industry.

Trade and industry secretary Ramon Lopez met with  executives from Texhong Textile Group in China and said part of the discussion was the company's interest to invest in the Philippines, according to the DTI's Facebook page.

According to local press, the company is currently in the evaluation phase and has yet to finalise details. "Nothing final yet as to timing. But they're serious," Lopez said.

Texhong Textile Group is a vertical producer and distributor of quality yarn, greige and garment fabrics, especially high-value-added core-spun yarn and fashion cotton textiles. It is one of the largest cotton textile suppliers in the world, with a network spanning across China, Europe, South Korea, Hong Kong and Bangladesh. 

"Its expansion will contribute to the Philippine garments and textile industry of our country and will provide employment opportunities to Filipinos," said Lopez.

According to the re:source by just-style strategic sourcing tool, the Philippines benefits from its close proximity to Asia and strong connections to the US.

Despite contraction in overall exports, apparel shipments rose in 2018 for the second straight year, with the US being the main market.

The country is also seeing a surge in the number of foreign investors shifting production from China to avoid additional US tariffs. just-style was told earlier this year that around 90% of garment manufacturers in the Philippines are owned by foreign investors, including Japanese, South Korean, Taiwanese, mainland Chinese or Hong Kong companies that also own factories in a number of other countries in the region, such as China, Vietnam and Cambodia.