Small And Medium Sized Textile Enterprises Need To Be Guided By The Government And Their Own Efforts To Get Out Of The Predicament.

Since 2007, China's export growth has been gradually reduced due to domestic and international factors, and the pressure on export enterprises has increased significantly, especially in small and medium-sized export enterprises, and the number of enterprises with losses and difficulties in operation has increased.

According to a research report of the National Bureau of statistics, the difficulties faced by export enterprises are the result of subjective and objective factors.

According to the report, the main difficulties faced by export enterprises are: the reduction of foreign orders, the decline in export growth, the decline in the cost of foreign exchange swap and the appreciation of the exchange rate, the marginal loss of enterprises, the slowdown in profit growth in major export industries, and the increase in deficit companies.

Objectively speaking, since China's accession to the WTO, China's exports have increased rapidly, but the traditional extensive growth mode has not been fundamentally reversed.

To this end, the Chinese government combines the "11th Five-Year plan" and the economic and social development, and has made a comprehensive reform of the import and export, exchange rate formation mechanism, labor force, resources and environmental protection, and has promulgated a series of related policies.

In the long run, these policies will certainly promote the sustainable development of foreign trade and national economy, and will also have a positive impact on export enterprises. But in the short term, enterprises are not quite suited to the situation, causing temporary difficulties, mainly in the following aspects.

Traditional export oriented policies have changed and enterprises are unable to adapt quickly.

Since 2005, China has adjusted many policies such as export tax rebate, processing trade, export provisional tariff and quota management. In 2006 and 2007, the relevant policies were frequently promulgated, the export tax rebate rate was adjusted to 6 times, the products of the export tax rebate were reduced by 3000 or more, and the processing trade policy was adjusted 5 times, and the processing trade ban and restriction category was added to more than 3300 (ten tax number) commodities.

These policies, from publication to implementation, have a shorter buffer period and are difficult for enterprises to adapt quickly.

In addition, since 2008, as the macro-control has changed from tight to tight, the central bank has repeatedly raised the deposit reserve ratio and tightened the scale of loans. The financing of SMEs is more difficult. Even if some enterprises can borrow money, interest costs will also increase significantly.

The overall cost of production and operation has increased, squeezing profit margins.

First, the cost of labor increases year by year.

In recent years, with the acceleration of industrialization and urbanization, the number of enterprises has increased significantly.

In the Pearl River Delta, labor supply tends to be tight, and the problem of recruitment difficulty and staff turnover is becoming increasingly prominent.

In order to recruit workers and retain skilled workers, enterprises should raise wages and improve welfare benefits.

In addition, with the implementation of the labor contract law, enterprises should make full use of the "three risks" for workers, and also increase the cost of employment for some enterprises.

Two, prices of raw materials and energy have risen all the way.

In recent years, driven by the high price of primary products in the international market, the prices of related products in the domestic market such as petroleum, coal, steel and agricultural and sideline products have also risen sharply, and the cost pressure of export processing enterprises is greater.

Three, the expenditure on environmental protection has increased significantly.

Many small and medium-sized enterprises have deficiencies in their production processes and equipment at the initial stage of construction, which has laid a hidden danger for future pollution and high energy consumption.

In recent years, under the guidance of Scientific Outlook on Development, governments at all levels have begun to strengthen the enforcement and punishment of environmental protection. The mandatory environmental protection measures such as sewage treatment and waste gas recovery and purification have become the prerequisites for the operation of enterprises. Measures such as the implementation of the deadline for rectification and the close down of laws and regulations for enterprises with emission exceeding standards and environmental illegal enterprises have fundamentally increased the environmental illegal cost of polluting enterprises.

- the appreciation of the RMB exchange rate has accelerated, and a large number of products export have lost the price comparative advantage.

Recently, the pressure on RMB appreciation has continued to increase as domestic inflation pressure has increased, the Fed has sharply reduced interest rates and the US dollar has weakened further.

In the Pearl River Delta, traditional labor intensive industries such as textiles, clothing, household appliances, toys, furniture and other products are mostly settled in US dollars and Hong Kong dollars. The rapid appreciation of the renminbi has directly led to the decline in export competitiveness of these industries and the loss of their price advantage.

Textile enterprises generally need about half a year's time from receipt to delivery. During this period, the appreciation of RMB has eroded most of the profits. Although the enterprises can lock in the forward exchange rate settlement when placing orders, it is extremely difficult to grasp the fluctuation of exchange rate, which brings difficult and anticipated exchange rate risk and exchange loss to export enterprises.

In addition, as the uncertainty of the US dollar trend increases, the fluctuation of the RMB exchange rate also increases correspondingly. The risk of exchange rate fluctuation must be faced by the enterprises, which indirectly increases the financial cost of the enterprises.

According to the report, from a subjective point of view, in recent years, most small and medium-sized export enterprises in China have maintained a large export scale through small profits but quick turnover, ignoring the improvement of their own quality and product quality.

- lack of core competitiveness.

First, the lack of private brand and independent innovation capability.

Small and medium-sized enterprises are hard to cultivate their brand and core technology because of their small profits and lack of talents.

According to the Ministry of Commerce survey, the average profit margin of China's textile export enterprises is only 3% to 5%, and the export mode is mainly based on foundry, and private brands account for only about 10%.

Some small export enterprises act as a processing and assembling workshop for multinational corporations. They rely on the well-known brands and sales channels of multinational corporations to survive, export products are single, the added value is low, and the power and capability of product innovation and industrial upgrading are insufficient.

Two, the quality of employees is obviously low.

At present, among the employees of small and medium enterprises in China, about 40% of them have high school or above, and only 11% of them are college degree or above.

From the professional technical titles, about 10% of the technical titles are employed, of which 5% are mid-level and above technical titles.

Lack of talents or talent is one of the main obstacles to the development of small and medium-sized enterprises.

Three, the effectiveness of enterprise management is not high.

In many small and medium-sized enterprises, no modern enterprise management system has been established. Quite a few of them still carry out family management. There is a lot of randomness in management, which weakens the management effectiveness of enterprises and can not compete effectively with advanced enterprises.

The poor credit foundation has increased financing difficulties.

Small and medium-sized enterprises generally have weak financial management foundation, poor pparency, lack of self binding force, extensive operation mode, small scale of operation, and lack of risk control capability.