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    China'S Textile Industry Added Value Growth Rate Is Low Again

    2008/12/16 15:20:00 18

    Textile Industry Growth

      規模以上紡織企業工業增加值增速再創新低。

    According to the statistics released by the National Bureau of statistics, in November this year, the added value of textile enterprises above Designated Size (annual revenues of more than 5 million yuan) increased by 6.2% over the same period last year, down 8.1 percentage points from the same period last year.

    Although this figure is slightly better than the average level of Enterprises above all industrial scale, the textile and garment enterprises and analysts believe that the growth rate of textile industry investment, production capacity, profit and industrial added value will continue to decline next year due to the possibility of further weakening of market demand.

    Li Yizhong, Minister of industry and information technology, told a news conference on Friday at the Information Office of the State Council, the Ministry of industry and information technology is in line with the NDRC's urgent plan for the revitalization of nine key industries, the top two in light industry and textile industry, and will take measures such as tax reduction, credit support and technical renovation projects.

      活躍度萎縮嚴重

    If statistics were released only yesterday from the National Bureau of statistics, the situation of the textile industry does not seem to be the worst.

    However, if the industry activity index (PMI) has been linked to the previous published industry index, the industry downturn will be exposed.

    China's official November PMI data show that China's manufacturing PMI for three consecutive months is below 50 to 38.8. in 20 classified industries, textile industry is less than 40, and chemical fiber manufacturing is less than 20..

    From the point of view of exports, China's textile and clothing exports increased by only 8% in the 1-11 months of this year, down 11.66% from the same period last year, and the textile and clothing exports in November before the yuan declined by 1.49%. This is also a negative growth in the textile export growth rate of RMB denominated for sixth consecutive months.

    The first textile network editor in chief Wang Qian said that as the orders were mostly determined in the first half of the year, the impact of the financial turmoil has not yet been completely released, and the two stimulus policies such as the export tax rebate rate increase appear, so the textile export data in November did not hit a new low, but the data after November may be beyond imagination.

      大企業也脆弱

    What is even more worrying is that with the deepening of the economic downturn, the size of the affected textile enterprises has also spread from small to medium-sized enterprises.

    Media reports show that at the beginning of this month, Zhejiang leading textile enterprise longitudinal group was on the verge of bankruptcy due to tight capital chain. Before that, many enterprises such as the five ring spandex and Hualian three Xin were in a similar situation. The garment industry was affected by the collapse of Hongkong's retail business, and Shunde's Wei Wei production base was shut down.

    Statistics show that in the 1-8 month of this year, the loss of Enterprises above Designated Size in the textile industry expanded from 19.1% in the same period last year to 21.3%, and the deficit of loss making enterprises increased by 66% over the same period last year, a sharp increase of 52.1%. over the same period last year.

    Wang Qianjin believes that the reason for the weak ability of large enterprises to resist risks lies in the fact that the so-called "large scale" is originally "puffiness". Many enterprises actually rely on bank loans to maintain them. Once this year's domestic and international economic situation deteriorates rapidly and the country's monetary tightening is reduced, it will be devastating.

    In the past, when the profit margin of the industry was low, many large textile enterprises often lost money in the body and made profits in the outside world, that is, acquiring wealth by means of diversification or asset premium.

    However, the financial tsunami has changed the trend of asset premium, resulting in loss of body and more losses in vitro.

      再次出手幫扶紡織業

    "To solve the current economic growth problem, industry is the key point and enterprises are difficult points. It is urgent to start the revitalization plan for key industries."

    Li Yizhong, Minister of the Ministry of industry and commerce, said on Friday that the Ministry of industry and commerce is cooperating with the NDRC in formulating nine key industries revitalization plans, including light industry, textiles, iron and steel, nonferrous metals, automobiles, petrochemicals, ships, electronics and communications.

    Policies and measures include reducing tax burden on enterprises, relieving cost pressures, increasing credit support, solving the financing difficulties of enterprises, launching a batch of enterprise technological pformation as soon as possible, promoting industrial upgrading, and fully excavating the seven aspects of domestic market, especially rural market potential, and stimulating consumption to drive production.

    For the leading enterprises and backbone enterprises involved in the key industries of the national economy and the people's livelihood, the state will use the discount method to support its technological pformation for small, specialized, new, special and high enterprises.

    Li Yizhong disclosed that the guide for investment in technological pformation of industrial enterprises is now being formulated, which will strive for a technical pformation of 300 billion to 400 billion yuan with the interest rate of 15 billion yuan with departments such as the NDRC and the Ministry of finance.

      政策難改2009年頹勢

    In fact, the state has issued a number of favorable textile industry policies this year, including the implementation of loose monetary policy, the increase of export tax rebates, the suspension of processing trade, the guarantee of the pfer of gold and Taiwan accounts, and allowing enterprises to offset the vat of newly purchased equipment.

    "Almost all the available methods are used, but the fundamental problem of the industry is the overcapacity accumulated over the years. Policy support can not change the pattern of the textile industry going down next year", a textile industry researcher who did not want to be named.

    The chairman of a textile fabric enterprise in Guangzhou also said that the premise of improving export tax rebate is that enterprises can obtain overseas orders.

    The pformation of value-added tax will certainly help enterprises to introduce new equipment, but less than medium-sized enterprises may not even have the funds to import equipment.

    From the recent changes in the textile industry investment, the interest rate cuts and value-added tax pformation are not attractive.

    In the face of greater pressure on the development of the industry and a sharp decline in profits, the enterprises' confidence in the latter stage is obviously insufficient, and their willingness to invest has dropped to freezing point, which has directly led to a sustained and rapid fall in textile fixed asset investment this year.

    Data show that in the first 10 months of this year, in the five major textile producing provinces in the East, except for Guangdong's 10.72% growth in investment, the rest of the provinces experienced an unprecedented negative growth.

    Information from the Guangdong Textile Association shows that Guangdong is now building a textile industry innovation alliance, which will be saved by the province.

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