Textile Industry: Win The Fortune And Increase Profits By Tens Of Billions Every Year

The troubled textile industry is finally beginning to dawn.

Yesterday morning, the Ministry of Finance and the State Administration of Taxation issued the notice on adjusting the export tax rebate rate of some textiles and garments. Since today, the export tax rebate rate of some textiles and clothing has increased from 11% to 13%.

Analysts said that because of the direct effect of fiscal and taxation measures, this will increase annual profits of the industry by more than ten billion yuan.

Reporters learned from the Ministry of finance that the textile and clothing products that raised the tax rebate included silk, wool yarn fabric, cotton yarn and cotton knitted fabric. This is also the first callback of the export rebate rate of related products since China launched the export tax rebate rate reduction in 2006.

Entering the 2008, due to the shrinking of the international market, the acceleration of RMB appreciation and the implementation of the new labor contract law, the domestic textile enterprises collectively fell into trouble, and raising the export tax rebate rate has always been the government's most appeals in the market.

Yesterday, the market was dragged down.

(002239),

(002083) textile stocks failed to break the tight encirclement and fell.

Shen Zhouxiang, a CITIC investment analyst, said that the purpose of the policy was to save the Eastern Textile and garment enterprises from a continuous loss, ease the pressure on employment and not fundamentally change the competitiveness of the industry.

The industry's recovery must be based on industry restructuring and fundamental changes. The textile and garment export industry still needs to start from cracking down on the plight of the industry after the impact of the digestion policy.

However, export oriented enterprises and low gross margin textile and garment enterprises will still benefit greatly.

Wang Qian, editor in chief of the first textile network, said that every percentage point increase in the export tax rebate rate would be equivalent to a percentage point increase in gross margin and a percentage point increase in pre tax profit margins.

Data show that the increase in the export tax rebate rate will account for 14% of the total profit of the textile industry, and the profit margin will increase by 0.6 percentage points.

Yesterday, the textile export tax rebate increased, for the struggling coastal garment enterprises have a warm breeze.

As the saying goes, save the poor and save the poor.

If a person wants to fundamentally improve his situation, he must base himself on his own efforts.

At present, China's export enterprises are more willing to strengthen themselves instead of relying on policies to save the market.

Since this year, business has been difficult to do, and export enterprises have been complaining.

From the recent central leadership in Shandong, Jiangsu, Zhejiang, Guangdong and other coastal provinces, we can see that the central government attaches great importance to a series of problems encountered by export enterprises, and is actively considering ways.

Indeed, it is necessary for the government to give support to export enterprises, and policy control is the most direct means.

Ten years ago, when the Asian financial crisis broke out, China's export situation was also very grim.

At that time, the departments concerned had taken some measures, such as paying interest on loans from export enterprises and adjusting export rebates.

In recent years, many export enterprises with good momentum of development have not only worked hard but also made better progress through policy support.

Therefore, in the current grim situation, strengthening policy support for export enterprises is a pressing matter of the moment.

However, the starting point of this policy support is to help enterprises "endure" temporary difficulties.

In fact, an open market economy often means that some aspects are involuntarily, and various policies need to be considered more about the external environment, so the degree of freedom of regulation is also small.

For example, in the past, interest rate reduction could be used to help enterprises overcome financial difficulties. With the rise of commodity prices in the international market, the domestic inflation level is still high. If we still adopt the way of lowering interest rates, we must consider the feasibility of the operation.

Faced with the pain of export enterprises, traditional regulation means not to be useless, but to be based on temporary solutions.

Now the Central Committee stresses the importance of maintaining the basic stability of foreign trade policies and encouraging export enterprises to enhance their competitiveness through their own efforts.

In fact, this is the way to save the poor from the root. China's export enterprises themselves need to be stronger.