In The Face Of RMB Appreciation And Export Tax Rebate, New Enthusiasm For Garment Export Enterprises Will Not Be Reduced.

In 1~5 months this year, 22 new garment enterprises in our city declared the clothing export business to the Council, an increase of nearly 30% over the same period last year.

As a big textile city and a strong market, the growth of garment export enterprises in Shaoxing is not unusual. But from last year to now, there are a lot of bad news for garment export enterprises. Why is the construction of clothing enterprises still enthusiastic?

The pressure of garment export enterprises is not small.

In June 20th, the middle price of the US dollar to the RMB exchange rate was 7.6180, which is the forty-fourth record of the RMB exchange rate since the beginning of this year.

Since the reform, RMB has appreciated by 6.46%, and this year's increase has reached 2.50%.

For export enterprises, this means the same order, settled in US dollars, and after the settlement, the money at the end of the year will be 10% less than that in the beginning of the year.

In June 18th, the relevant departments of the State stipulated that the tax rebate rate of garment export dropped from 13% to 11% from July 1st.

This means that every garment exported by US $1 million will earn less than US $20 thousand.

In addition to shrinking profits, "labor shortage" and rising costs are also a headache for garment enterprises.

Although garment companies have repeatedly raised their treatment, they still feel that they are not only the right employees but also ordinary workers.

City Labor Department official said, some large enterprises because no workers can be recruited, some production lines were forced to shut down.

There is also a rapid rise in the price of clothing fabrics and accessories, bringing the growth of garment processing costs and making many small and medium-sized garment exporters in a difficult position.

Exports are easier than domestic sales?

Even so, why are garment exporters in Shaoxing enthusiastic?

Xu Yang, director of the textile inspection department of Shaoxing inspection and Quarantine Bureau, said that compared with the domestic clothing enterprises, the export garment processing enterprises have the characteristics of low investment cost, short operation period and relatively small risk. As a big textile city, they have certain advantages in purchasing cloth raw materials, so that many people feel that the money is profitable.

According to introducing, the new business that Shaoxing applies for garment export business this year, the scale is mostly small, there is only 2~3 production line, mainly for foreign trade import and export company to do garment processing.

"Investing in the construction of an export garment processing enterprise is only enough for hundreds of thousands of yuan, and the cost is very low.

Then, garment processing enterprises can get processing orders from foreign trade companies, order production, guarantee quality and quantity, deliver on time, and do not worry about the backlog of goods sold out, and the risk is smaller than domestic sales.

The head of a famous clothing company in Shaoxing said the company had backlog of clothing in every branch of the country, and if all came back, the whole company could not put it down.

Low end competition has many disadvantages.

No one can do business without money.

The boss of a clothing enterprise said that when the production cost goes up, they will definitely ask foreign importers to raise their prices through foreign trade import and export companies.

Importers do not agree, but this is a trend. They will eventually have to raise their prices because Chinese clothing is still cheaper and cheaper.

But industry insiders say that with the rapid growth of domestic wages and a series of factors, the cost advantage of winning by price will be smaller and smaller.

What competition will these enterprises rely on at that time?

If some garment enterprises do not enhance the competitiveness of enterprises by upgrading the product grades and increasing the added value of products, these enterprises are likely to be eliminated as profits decrease.

More importantly, at present, this kind of low price competition within the industry is also unfavorable for the development of the whole industry.