Under the background of economic globalization and rapid development of high-tech industries, the competitiveness of traditional industries is an important issue. Using industrial value chain framework this article discusses international division of labor in global production system and its trend. Industrial competitiveness decided by the ability of creation of value-added, not decided by property of industry inevitably. By reviewing competitiveness of traditional industrial cluster in Wenzhou, it analyses the competitiveness of industrial cluster, and brings forward some advices on promoting competitiveness of traditional industrial cluster under the background of economic globalization.