Yangzhou Textile Enterprises: "Long Drought" To "Drizzle" Profits Can Increase By One Percentage Point

Since August 1, 2008, the export rebate rate of some textiles and garments has increased from 11% to 13%.

This is the first pullback since China launched the foreign trade policy of lowering the export tax rebate rate in 2006.

The textile industry has always been the main traditional export industry in our city. Reporters learned yesterday that Yangzhou textile enterprises generally welcomed the adjustment. They looked forward to easing the current business difficulties and looking forward to the early breakout of their industry.

Raise the tax rebate rate and reduce the burden of textile enterprises

After knowing the news about the adjustment of the textile export tax rebate rate for the first time, Mr. Xu of a textile enterprise in Yangzhou felt at ease, because the clothing produced by his company was mainly exported to Europe, America and other countries and regions.

"Before this, the industry generally expected textile export tax rebate rate increased by 2 percentage points, clothing export tax rebate rate increased by 4 percentage points.

This timely rain has come down in advance, and we have been saving straws for the plight.

"At least we can see the dawn."

Mr Xu said that this year, due to a series of "bad profits" such as rising prices of raw materials and labor, continuous appreciation of RMB and continuous rise in loan interest rates, the production of enterprises has been in a state of low profit and is becoming increasingly difficult.

According to him, Yangzhou's larger garment export processing enterprises had a profit margin of between 5% and 6%. Before the tax rebate rate adjustment, they generally shrank from 2% to 3%.

Some enterprises with weak strength can not change production, cut production or even stop production.

"The export tax rebate rate increases, the cost pressure of enterprises is relatively small, we can take a breath."

Another head of textile enterprises said that the export tax rebate rate increased by 2 percentage points, and the profits of foreign trade enterprises could increase by 1 percentage points.

In the current textile and clothing industry in the case of small profits, this is particularly valuable.

Textile enterprises "survive winter" remains a problem

The export tax rebate rate has raised the excitement of Yangzhou's textile and garment industry. They think this reflects the government's attention to the textile and garment industry.

However, for those who are currently at a staggering pace, they will still face the test of RMB appreciation, raw materials rising and labor force price rising.

In fact, since the RMB exchange rate went up all the way in the second half of last year, the large garment export enterprises in our city felt the heavy pressure obviously.

This year, from 1 to June, the appreciation of RMB has exceeded 6.92%. It is estimated that for the import and export enterprises settled in US dollars, the appreciation rate of RMB will be 1%, the sales profit margin of textile and garment industry will be reduced by 2% to 6%. In addition, the processing trade margin system will occupy the liquidity of enterprises; the trade barrier between Europe and America will bring a series of environmental certification and testing fees; the cost of imported chemical fiber raw materials will increase and the labor cost will rise.

In recent years, too many "mountains" on the domestic textile and garment industry are too heavy.

A garment factory owner and reporters calculated that they produced T-shirts cost 6 yuan per piece, exports to the United States can sell 1 dollars, according to the original 1 U. S. dollars for 8.27 yuan conversion, export a T-shirt can earn 2.27 yuan, and now the appreciation of the renminbi to 1:6.9, a T-shirt can only earn RMB 0.9 yuan.

If the renminbi appreciates again, it will not make money at all.

"Now, the list of export is not readily available, because the order period and the settlement period are 1 to 2 months apart. Once the forward exchange rate is not estimated enough, profits may be swallowed up by the rising exchange rate."

The tax rebate rate of 2 percentage points, such as "long drier land and a few drizzle", is far from being able to solve the problem.

Out of crisis must be "self redemption"

During the interview, the reporters found that many textile enterprises in trouble were no longer imagining the policy of saving the world. The crisis of survival forced them to "self redemption", upgrading their products, establishing their own brands and expanding the domestic market.

For the export tax rebate rate increase, many textile enterprises in our country think that it may be just a short-term good. If we want to withstand the current severe global economic shuffling test, instead of passively waiting for government blood pfusion, we should strengthen our muscles and muscles, improve our internal strength, speed up the adjustment of our product structure, enhance the value through brand, and reduce the cost through management.

Experts suggest that Yangzhou textile enterprises can consider the next step of development according to the actual situation. Enterprises producing low end products can consider turning from European and American markets to Asian or African markets, and enterprises that produce medium and end products can consider the road of brand development.