Financing Difficulties Test Small And Medium Textile Enterprises In Qingdao

The Ministry of Finance and the State Administration of Taxation recently issued a notice that since August 1st, the export tax rebate rate of some textiles and clothing has increased from 11% to 13%.

In recent months, textile and apparel industry, which is constantly valuing valuations, has finally welcomed the good news.

However, many challenges still test the development of small and medium-sized textile enterprises in Qingdao.

The export tax rebate increased by two percentage points, which means that the struggling textile enterprises can increase profit margins by 1 to 2 percentage points.

"Don't underestimate the profit margin of these one or two percentage points, and some enterprises may be rescued from the" ghost gate ".

The head of a trading company said.

According to the reporter, in the first half of this year, Qingdao clothing exports 1 billion 630 million US dollars, textile exports 870 million US dollars, and the annual export of textiles will reach US $5 billion.

Roughly estimated, the tax rebate increased by two percentage points, which will increase the income of Qingdao textile and garment export enterprises by 700 million yuan, and alleviate the cost pressure of enterprises.

However, the head of a textile enterprise in Qingdao said in an interview with "China made news" that "this measure is mainly helpful to export oriented enterprises, but for those enterprises that are mainly domestic based like them, the benefits are not great."

The official told reporters: "this year, this enterprise has been facing a great test.

The tight monetary policy of our country makes it difficult for us to borrow money from the small businesses. The appreciation of the renminbi, the rising cost of raw materials and labor and other factors also make textile enterprises live in a stormy day.

According to statistics, the profit of the entire textile industry is only 0.0% this year.

Experts said that the main purpose of regulation and control of textile and clothing is to adjust the industrial structure of textile and clothing and improve the technical content of the textile and garment industry.

However, the responsible person told reporters: "enterprises also hope to adjust the product mix of enterprises and increase the added value of products. However, capital shortage and financing difficulties make it difficult for enterprises to take effective action, which in turn restricts the competition of enterprises and forms a vicious cycle."