Textile Industry: Improving Competitiveness To Break Through Smoothly

The Ministry of Finance and the State Administration of Taxation announced that the export rebate rate of some textiles, clothing and other commodities will be adjusted from August 1st this year.

The export rebate rate of some textiles and clothing increased from 11% to 13%, and the export tax rebate rate of some bamboo products increased to 11%.

If the textile industry is drying up, the enterprises in the industry need to cultivate new competitiveness.

Textile industry export growth rate down

Analysts believe that this year, the international market demand weakened, domestic raw material prices, RMB appreciation accelerated labor costs rise and other factors superimposed, export business costs increased.

The export rebate rate of textiles and clothing will help reduce the pressure of export slowdown, alleviate the shortage of funds caused by tight monetary policy to some enterprises, and support the healthy development of SMEs.

In the first half of this year, China's foreign trade showed a slowdown in export growth and accelerated import growth.

According to statistics, in the first half of this year, China exported 666 billion 600 million US dollars, an increase of 21.9%, down 5.7 percentage points from the same period last year.

The textile industry association of China recently revealed that the total export volume of textiles and clothing in the previous June was 83 billion 851 million US dollars, up 11.11% from the same period last year. From the export point of view, it exported 7 billion 666 million US dollars and 11 billion 616 million US dollars to Hongkong and the United States respectively, up to 14. 31 percent and 0.65% respectively.

Judging from the type of enterprises, the export of textiles and clothing by state-owned import and export companies, foreign-funded enterprises and private enterprises in June were 5.78%, 13.74% and 12% respectively.

The national development and Reform Commission data also showed that in the first half of the year, the export value of textile industry was 365 billion yuan, an increase of 8.5%, a drop of 7.5 percentage points.

It is difficult to solve worries and worries.

It is estimated that the total export volume of textiles and clothing is expected to reach US $184 billion 700 million this year. According to the general trade export account for 70%, the export tax rebate rate will be adjusted by 2%, and the total profit of the textile industry will increase by about 17000000000 yuan.

"For the textile industry that is struggling now, the adjustment of the export tax rebate rate is indeed a timely relief."

Li Yanli, head of Zhejiang's Kay hi Ya International Co., said, but the appreciation of the RMB exchange rate, the rising interest rate of bank loans and the increase of raw material and labor costs all made it difficult for companies to be optimistic.

In the first half of the year, the sales revenue of the company declined by 10% and its profit fell 48%.

The performance of its 6 trading branches declined, 2 losses, and 5 losses in 11 factories.

"RMB appreciation has become the biggest pressure on enterprises. Even European customers insist on using US dollars to settle accounts. The 3 month settlement period will be 5% at the fastest time, while the average profit margin in the textile industry will be around 3%."

She said.

According to the insiders, although the export tax rebate rate has eased the survival pressure of enterprises in the short term, the situation has not been fundamentally improved, such as increased production costs, tight credit environment and weak external demand market.

At the same time, the dividend policy raised by the export tax rebate rate can not be fully enjoyed by domestic enterprises.

Because of the low bargaining power of domestic enterprises, foreign buyers are bound to get a share.

Small and medium sized enterprises still need to practice in order to survive.

"This can relieve pressure on enterprises and stimulate exports."

Zhuang Jian, chief economist of the Asian Development Bank, said that due to various unfavorable factors, some export enterprises in the eastern part of China are facing difficulties in production and operation, and some even fail.

Therefore, the state gives support to foreign trade policies to help competitive enterprises tide over difficulties.

Many people worry that the export tax rebate rate will delay the industry's survival of the fittest, and is not conducive to industrial upgrading.

Although the state will still strongly support the development of small and medium-sized enterprises, Zhuang Jian said that in the long run, enterprises still need to practise "internal strength", so as to cope with the grim survival situation at home and abroad by improving production efficiency and upgrading product structure, so as to survive and develop.

Cao Xinyu, vice president of the China Textiles Import and Export Chamber of Commerce, said that compared with the export tax rebate rate adjustment, speeding up the export tax rebate rate, easing the credit difficulties of enterprises, and enhancing the "hematopoiesis" function of enterprises, may even benefit the enterprises.