The Textile Industry Calls For The Rate Of Export Tax Rebate No Longer To Be Reduced

"The export tax rebate rate of our textiles will not be further lowered."

In May 9, 2008, Du Yuzhou, President of the China Textile Industry Association, made the above statement at the National Textile Forum held at 002083 of China.

2008 is undoubtedly heavy for the textile industry. The continuous appreciation of RMB, the rising cost of raw materials and labor, and the reduction of the export tax rebate rate have become a great drag on the textile industry. At the same time, the tightening of domestic monetary policy and the weakening of the international economic trend have made the textile enterprises "producing and exporting" even worse.

In the future, the textile export tax rebate will no longer be lowered, which will be a positive boost for the struggling textile enterprises.

It is reported that this forum focuses on how to face the current situation and seek new ideas for breakthroughs.

The top executives of the textile association and the well-known domestic textile enterprises attended the meeting. This shows that the textile industry at the crossroads is in urgent need of finding a way out for the future.

According to the China Textile Association, since 2008, the economic growth of the national textile industry has been slowing down. In 1~2 months, the economic efficiency of 1/3 enterprises in the above scale enterprises continued to increase, with an average profit margin of 8.73%. The business difficulties of the 2/3 of the whole industry increased, and the profit margin was 1 billion 641 million yuan from last year to 1 billion 685 million yuan, with an average profit margin of -0.67%, of which 11072 were net loss enterprises.

"The deficit rate has reached 23.7%, far higher than last year's 14.34%."

Du Yuzhou said at the forum.

The continued appreciation of the RMB has brought unprecedented pressure to the export oriented textile enterprises.

"Since the second half of 2005, the RMB has appreciated by 15.8%, and from 2004, the textile export tax rebate rate has been reduced from 17% to 11%."

In 2007 alone, the national textile industry digested the new cost of 160 billion yuan.

China's textile industry will face the most difficult year in the past 10 years.

Take the textile province of Shandong as an example, since this year, the profit margins of textile and garment enterprises across the province have been squeezed, and the export situation of textile and clothing is very grim.

In the first quarter, 433 (29.6% of the profits) were operating well, accounting for only 29.6%, and 21.3% of the enterprises even lost production or converted to production. The rest were basically guaranteed capital operations (around 1% of profits).

Affected by various factors, the average cost of enterprises increased by 20-35% in the first quarter of this year, while export prices were difficult to synchronize.

Shandong economic and Trade Commission analysis, resource constraints such as raw materials, funds, electricity and pportation capacity will continue to affect the operation of Shandong's textile industry.

According to Shandong Gaomi City government officials, since the second half of last year, a number of small textile factories have been closed down. The number of closed factories has reached more than 100, including 7 Enterprises above designated size.

Yang Donghui, vice president of China Textile Association, revealed that at the beginning of March, almost all the top executives of the China Textile Industry Association went to Jiangsu, Zhejiang, Guangdong, Hebei, Shandong, Fujian and other six provinces to investigate the local textile industry, and promptly reflected the investigation to the State Council.

In April 22nd, President Du Yuzhou made a research report to the Vice Premier Zhang Dejiang of the State Council, put forward policy suggestions, and then made a report to the newly established Ministry of industry and information.

President Du Yuzhou pointed out at the home textile forum that the current textile industry is facing pains.

How to deal with immediate difficulties?

President Du Yuzhou called on textile enterprises to learn from the spirit of wild goose cooperation, to be united and avoid vicious competition.

"Leading enterprises drive small and medium-sized enterprises", with their respective advantages, they are faced with difficulties together.

The domestic textile industry is in deep trouble, but the competition among them is more intense.

"The company has also tried to raise prices, but because of the large number of manufacturers in the domestic textile industry, the price is raised, which is likely to cause a run list."

The chairman of a textile company said at the meeting.

It is reported that because of the widespread existence of "run alone phenomenon" in the textile industry, the discourse power of enterprises to raise prices for products is becoming weaker and weaker.

"If you don't do it, I'll do it."

The price reduction between enterprises has led to the increasingly narrowing of the price increase, and even to foreigners the illusion that "Chinese textiles are low prices".

In this regard, Chen Guohong, Shenzhen fuanna home furnishings supplies Co., Ltd. also appealed to domestic textile enterprises to be united, but also hoped that the textile association would formulate rules of the game to avoid enterprises from getting bogged down in the vicious competition.

How can the textile industry seek a breakthrough under the predicament?

Du Yuzhou said that improving the soft power of textile enterprises has become an imminent problem.

In the first quarter of this year, the price of raw materials in the textile industry increased by 3.2%, and fuel power increased by 17.7%, which virtually increased the cost of the enterprise.

At the same time, the cost of labor in China's textile enterprises has increased year by year. The industry expects that the average labor cost of textile and garment enterprises will increase by about 20% in 2008.

The difficulty of recruiting workers has become a difficult problem for textile enterprises in coastal areas.

In the face of the new environment, Du Yuzhou said, textile industry to improve labor productivity is particularly important, through staff skills training, strengthen the internal management of enterprises, reduce all aspects of costs, so that everyone creates the value of expansion, as far as possible to improve the contribution rate of technology and brand contribution rate.

It is worth mentioning that under the background of the appreciation of RMB and the slowdown of the US economy, many textile enterprises have been fighting for the domestic market, increasing domestic sales and channel construction.

It is understood that since October last year, CCTV shares and other media launched advertising, "Fu day home textile" brand gradually started in the domestic market.

"Fu Tian home textile" stores and flagship stores have opened in Xiamen, Xi'an, Chengdu and Guangzhou.

Recently, the flagship store of Beijing, Shanghai and Ji'nan has opened at the same time, and there are more than 40 stores in flagship stores or flagship stores in large and medium-sized cities in China.

In order to maximize profits,