Zhejiang Sample Of Industrial Economy: Loss Of Textile And Leather Industry

Economic data in the first half of the year have been unveiled. Among them, the difficulties and pressures of Zhejiang enterprises are the most prominent since the current economic growth cycle.

The industrial economy of Zhejiang, a big industrial province, has been showing a "turning point" after years of rapid growth.

An industrial economic analysis report of the local economic and trade department shows that the industrial economy of the province is "in a tight running state and the enterprises are carrying heavy loads ahead".

Local economic and trade departments believe that "the second half of this year, the economic operation is still facing greater uncertainty, and the development trend is grim."

Data show that in 1~6 months, the industrial added value of Enterprises above Designated Size in Zhejiang was 383 billion 670 million yuan, an increase of 12.2%, an increase of 5.5 percentage points compared with the same period last year. In 1~5 months, the total profit of enterprises was 63 billion 550 million yuan, an increase of 14.1%, an increase of 17.8 percentage points over the same period last year.

The situation of Zhejiang province may be representative in the whole country.

Recently, Shanghai, Shandong and other provinces and municipalities nationwide have announced or will announce the economic performance in the first half of the year. This Thursday, the National Bureau of statistics will announce the national economic operation data in the first half of the year.

From the data already published, the economic situation in the first half of the year is not optimistic.

According to the statistics of the General Administration of customs, in June, the national trade surplus reached 21 billion 350 million US dollars, down 20.6% from the same period last year, and the foreign trade export increased by 17%. After February this year, it fell to 20% below the sensitive critical point.

National Development and Reform Commission Economic Operation Bureau data show that in 1~5 months, steel and ten kinds of non-ferrous metals output growth fell by 10% over the same period, and the output of building materials industry also showed an upward trend of growth.

New changes in industrial growth

The above report shows that there are "noticeable new changes" in the pattern of industrial growth in Zhejiang. In terms of industry, basic industries, raw materials industries and cost-effective pmission industries perform better growth performance; overcapacity, raw material prices difficult to conduct industries and less developed industries are not well developed.

Food, paper-making, medicine, chemical engineering and rubber are the five major industries that produce excellent semi annual reports.

Among them, the food and paper industry has played a price inflation effect, the profit growth rate is over 50%, "achieve many years of rare business success".

The pharmaceutical industry has been out of the doldrums for three consecutive years since last year, and its profit growth has exceeded the peak of nearly 10 years.

The market demand for chemical and rubber industries was strong, prices rose in full and profits jumped by 50%.

Compared with the above five industries, the textile industry, especially leather, chemical fiber, clothing, printing and so on, has a weak trend and a big loss.

The data of Zhejiang economic and Trade Commission show that the crude oil and oil products prices in the oil processing industry are greatly upside down. In 1~5 months, the profit of 2 billion 890 million yuan in the same period last year suddenly changed to a net loss of 1 billion 550 million yuan.

In addition, under the heavy pressure of market competition and soaring steel prices, the rapid growth of the equipment manufacturing industry has slowed down in recent years, and the growth rate of motor vehicles is not high.

Two worries

In the above report, the local economic and trade department believes that the main problem of the current industrial economy is not to increase the trend of growth, but to reduce the "severe signs and potential risks of the development of industrial economy" through the growth trend.

In 1~5 months, there were 1.07 loss of Enterprises above Designated Size in Zhejiang, with a deficit of 19.6%. The Zhejiang provincial economic and Trade Commission believes that this "shows that the enterprises with heavy difficulties in production and operation, especially large and medium sized enterprises," and "the difficulties and pressures faced by enterprises at present are the most prominent since the current cycle of economic growth".

There are two reasons for the aggravation of business difficulties. One is the overall rise in costs. The data show that the ten major costs of energy, raw materials, land, pportation, interest rates, exchange rates, wages and taxes in Zhejiang enterprises have been fully promoted. For example, in the 1~5 month, the purchase price of energy and raw materials rose 11.4%, which is 0.8 percentage points higher than that of the whole country.

According to enterprises above Designated Size, the increase in the price of raw materials in the first half of the year after deducting the ex factory price of industrial products in Zhejiang province is as high as about 50000000000 yuan, the labor remuneration increased by 10 billion 300 million yuan (per capita increase of 1350 yuan), and the financial cost increased by 6 billion 500 million yuan (an increase of 35.4%).

The second is "the environment of foreign trade is becoming more severe".

The local economic and trade authorities have analyzed that RMB appreciation is the most difficult factor for enterprises to predict and affect export efficiency. At present, the main business profit margin of enterprises in Zhejiang above scale is only 4.3%, and the 90% export enterprises are below 5% of the RMB appreciation.

In addition, due to the disorderly competition of export enterprises and the greater international trade frictions, the Zhejiang economic and Trade Commission believes that "many export enterprises are faced with the problem of survival rather than development, and this year will be the reshuffle of export enterprises".

Supporting suggestions

When looking ahead to the industrial economy in the second half of the year, the local economic and trade department believes that the industrial economy of the province has "greater uncertainty" and "more severe development trend". "This year, the industrial growth in the whole province has fallen down, and it is hard to tell when to end."

In order to maintain the sustained development of the industrial economy, the local economic and trade authorities put forward three suggestions for supporting the enterprises to the provincial government, including strengthening the formulation and implementation of supporting policies for small and medium-sized enterprises, supporting policies for export production enterprises, and supporting policies for enterprise restructuring.

In terms of Finance and taxation, we should study and formulate some substantive policies. For example, enterprises with better prospects for development, but at present, enterprises with relatively difficult operation will be given appropriate tax relief or fee repayments, and the proportion of provincial and local financial sectors should be adjusted.

In terms of finance, the current focus is on maintaining profitable enterprises in the market, ensuring corporate liquidity, actively developing direct financing, and guiding the development of local small loan companies.

In late June, Zhejiang has issued "opinions on promoting the steady development of foreign trade in the province", and put forward 14 opinions on financial support, encouraging enterprises to carry out international markets and the progress of export tax rebates.