SGS Societe Generale de Surveillance : Expands Southeast Asia Network to Support the Growing Apparel Industry

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 the rising star countries such as Cambodia and Myanmar. 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 of the apparel manufacturing and exporting in these two countries are supported by the relatively lower cost of labour compared to the neighbouring countries as well as the preferential tariff and quota-free access to the US and EU markets.

To support the apparel industry, SGS operates a laboratory in Phnom Penh, Cambodia with the capability to perform product regulatory and quality testing (such as the 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 to access international markets.

Furthermore, SGS provides garment inspection services in Myanmar. The inspection service was founded in 1948 as the first 3rd party service provider in the country. We offer inspection at every stage of the production to assist the apparel industry to highlight defects as early as possible to avoid issues later in the supply chain. Our inspection services include Initial Product Checks, During Production Checks and Final Random Inspections. We also offer social compliance audit service to ensure manufacturers in Myanmar are engaged in lawful, humane and ethical manufacturing. Backed by our extensive worldwide network of experienced local inspectors and auditors, SGS performs these services in other countries in the Southeast Asia region. We act 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.

In addition to Cambodia and Myanmar, SGS has a strong footprint spanning many core sourcing countries within Southeast Asia, including Indonesia, Vietnam, Thailand and the Philippines. Local apparel manufacturing industry and brands' sourcing offices located in Southeast Asia can leverage our footprint 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 sourcing shift to the emerging locations in Southeast Asia such as Cambodia, Myanmar and Indonesia. This shift has changed the global sourcing landscape. Furthermore, we also observe many investors of major manufacturing groups have been setting up factories across this region, fuelling the growth of the apparel industry and the economic 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."

SGS Southeast Asia offers a full array of physical and chemical testing services, audits, inspections and technical consultancy to our customers. Leveraging our global network, our knowledge, expertise and service orientation ensures the service delivery is best-in-class in this area.