Five Characteristics Of Zhejiang Textile Industry And Three Suggestions For Development

Zhejiang has the reputation of "Silk house" since ancient times.

Since the founding of new China, especially since the reform and opening up, Zhejiang's textile industry has been developing rapidly.

According to the second basic unit census data, by 2001, the textile industry in Zhejiang province had 12423 legal person units, 954 thousand and 800 employees, 35 billion 654 million yuan in paid capital and 131 billion 993 million yuan in annual business income.

In addition to the number of manufacturing units in the number of units in third places, the rest of the indicators are ranked first in the manufacturing sector.

Textile industry has become an important pillar industry of Zhejiang's industrial economy.

Development of textile industry in Zhejiang Province

(1) the non-state-owned economy is quite active, and the share of the state-owned economy is limited.

In 2001, Zhejiang textile enterprises accounted for 1.5%, 7.2%, 11.4% and 6.4% of state-owned economy units, employed persons, paid up capital and annual operating income respectively. The non-state-owned economy accounted for 98.5%, 92.8%, 88.6% and 93.6% respectively.

In the non-state-owned economy, the private economy accounts for the largest proportion, and the number of enterprises and employees accounts for 71.6% and 50.4% of the non-state-owned economy respectively. Secondly, Hong Kong, Macao and Taiwan and foreign investment economy, the number of enterprises and the number of employees are 7.4% and 18.3% respectively.

(two) cotton spinning, silk and knitting constitute the three pillar industries of Zhejiang textile.

In 2001, there were 10619 enterprises in these three industries and 852 thousand and 100 employees, accounting for 85.5% and 89.3% of the total respectively.

(three) Hangzhou, Shaoxing, Jiaxing and Ningbo have become important textile production bases in Zhejiang.

In 2001, the total number of textile enterprises in these four regions reached 8297, and the number of employed persons was 731 thousand and 600, accounting for 66.8% and 76.6% of the total respectively.

(four) small and medium-sized enterprises have become the main body of Zhejiang textile industry.

Of the 12423 enterprises, 11407 were employed below 200, accounting for 91.8%; 11110 of the paid up capital was less than 5 million yuan, accounting for 89.4%; 10200 of the operating income was less than 10 million yuan, accounting for 82.1%.

(five) the majority of "young" enterprises have developed in the past ten years.

Of the 12423 enterprises, 11089 were established after 1992, accounting for 89.3%.

Among them, 6832 enterprises were established after 1998, accounting for 61.6% of the number of new enterprises after 1992.

Two, the development characteristics of Zhejiang's textile industry

(1) from the perspective of changes in the economic structure, the non-public sector of the economy continues to grow and the share of the public sector of the economy has dropped markedly.

(two) from the perspective of industrial structure changes, cotton textile industry, knitwear industry, fiber raw material processing industry and other textile industries have been increasing; wool textile, silk textile and linen textile industry have declined.

(three) extroverted increase.

The first is the improvement of the proportion of textile exports.

According to customs statistics, the export volume of textile yarns, fabrics and products, mattresses, bedding and similar products in Zhejiang rose from US $1 billion 150 million in 1997 to US $3 billion 144 million in 2001, and the proportion of export volume increased from 11.4% to 13.7%, up 2.3 percentage points.

The two is that the proportion of export value of non state owned textile enterprises (i.e. above scale textile enterprises, the same below) in all state-owned and annual product sales revenue is more than 5 million yuan, accounting for an increase in the proportion of sales value.

In 2001, the export value of textile enterprises above Designated Size reached 32 billion 5 million yuan, accounting for 30.7% of the sales value, not only 3.3 percentage points higher than that in 1998, but also 4.4 percentage points higher than that in the manufacturing industry.

(four) the overall economic efficiency has been increasing year by year.

According to the National Bureau of statistics industrial economic efficiency evaluation and assessment system, in 2001, the comprehensive economic efficiency index of textile enterprises above Designated Size in Zhejiang reached 132.38, an increase of 50.55 points over 1996, an average annual increase of more than 10 points.

(five) the growth rate of textile production and sales is lower than that of the manufacturing industry, but the profit and profit tax increase is faster than that of the manufacturing industry.

From 1996 to 2001, the average annual increase of industrial added value and sales revenue of textile enterprises above Designated Size in Zhejiang was 12.8% and 12.9% respectively, 2.9 and 2.6 percentage points lower than that of the manufacturing industry at the same time, and the annual increase in profits and profits and taxes were 118.4% and 29.3% respectively, 86.6 and 6 percentage points higher than the average level of manufacturing industry.

{page_break}

Five characteristics of Zhejiang textile industry and three suggestions for development

Zhejiang has the reputation of "Silk house" since ancient times.

Since the founding of new China, especially since the reform and opening up, Zhejiang's textile industry has been developing rapidly.

According to the second basic unit census data, by 2001, the textile industry in Zhejiang province had 12423 legal person units, 954 thousand and 800 employees, 35 billion 654 million yuan in paid capital and 131 billion 993 million yuan in annual business income.

In addition to the number of manufacturing units in the number of units in third places, the rest of the indicators are ranked first in the manufacturing sector.

Textile industry has become an important pillar industry of Zhejiang's industrial economy.

Development of textile industry in Zhejiang Province

(1) the non-state-owned economy is quite active, and the share of the state-owned economy is limited.

In 2001, Zhejiang textile enterprises accounted for 1.5%, 7.2%, 11.4% and 6.4% of state-owned economy units, employed persons, paid up capital and annual operating income respectively. The non-state-owned economy accounted for 98.5%, 92.8%, 88.6% and 93.6% respectively.

In the non-state-owned economy, the private economy accounts for the largest proportion, and the number of enterprises and employees accounts for 71.6% and 50.4% of the non-state-owned economy respectively. Secondly, Hong Kong, Macao and Taiwan and foreign investment economy, the number of enterprises and the number of employees are 7.4% and 18.3% respectively.

(two) cotton spinning, silk and knitting constitute the three pillar industries of Zhejiang textile.

In 2001, there were 10619 enterprises in these three industries and 852 thousand and 100 employees, accounting for 85.5% and 89.3% of the total respectively.

(three) Hangzhou, Shaoxing, Jiaxing and Ningbo have become important textile production bases in Zhejiang.

In 2001, the total number of textile enterprises in these four regions reached 8297, and the number of employed persons was 731 thousand and 600, accounting for 66.8% and 76.6% of the total respectively.

(four) small and medium-sized enterprises have become the main body of Zhejiang textile industry.

Of the 12423 enterprises, 11407 were employed below 200, accounting for 91.8%; 11110 of the paid up capital was less than 5 million yuan, accounting for 89.4%; 10200 of the operating income was less than 10 million yuan, accounting for 82.1%.

(five) the majority of "young" enterprises have developed in the past ten years.

Of the 12423 enterprises, 11089 were established after 1992, accounting for 89.3%.

Among them, 6832 enterprises were established after 1998, accounting for 61.6% of the number of new enterprises after 1992.

Two, the development characteristics of Zhejiang's textile industry

(1) from the perspective of changes in the economic structure, the non-public sector of the economy continues to grow and the share of the public sector of the economy has dropped markedly.

(two) from the perspective of industrial structure changes, cotton textile industry, knitwear industry, fiber raw material processing industry and other textile industries have been increasing; wool textile, silk textile and linen textile industry have declined.

(three) extroverted increase.

The first is the improvement of the proportion of textile exports.

According to customs statistics, the export volume of textile yarns, fabrics and products, mattresses, bedding and similar products in Zhejiang rose from US $1 billion 150 million in 1997 to US $3 billion 144 million in 2001, and the proportion of export volume increased from 11.4% to 13.7%, up 2.3 percentage points.

The two is that the proportion of export value of non state owned textile enterprises (i.e. above scale textile enterprises, the same below) in all state-owned and annual product sales revenue is more than 5 million yuan, accounting for an increase in the proportion of sales value.

In 2001, the export value of textile enterprises above Designated Size reached 32 billion 5 million yuan, accounting for 30.7% of the sales value, not only 3.3 percentage points higher than that in 1998, but also 4.4 percentage points higher than that in the manufacturing industry.

(four) the overall economic efficiency has been increasing year by year.

According to the National Bureau of statistics industrial economic efficiency evaluation and assessment system, in 2001, the comprehensive economic efficiency index of textile enterprises above Designated Size in Zhejiang reached 132.38, an increase of 50.55 points over 1996, an average annual increase of more than 10 points.

(five) the growth rate of textile production and sales is lower than that of the manufacturing industry, but the profit and profit tax increase is faster than that of the manufacturing industry.

From 1996 to 2001, the average annual increase of industrial added value and sales revenue of textile enterprises above Designated Size in Zhejiang was 12.8% and 12.9% respectively, 2.9 and 2.6 percentage points lower than that of the manufacturing industry at the same time, and the annual increase in profits and profits and taxes were 118.4% and 29.3% respectively, 86.6 and 6 percentage points higher than the average level of manufacturing industry.

Three, the main problems of Zhejiang's textile industry

(1) the profit margin of main business is not high, and it is decreasing year by year.

From 1996 to 2001, the profit margins of textile business owners above Designated Size in Zhejiang were 10.4%, 10.4%, 9.4%, 9.4%, 8.7%, 8.5%, respectively, 1.5, 1.7, 2, 2.3, 2.4 and 2.4 percentage points lower than the average level of manufacturing industry.

The reasons for the decrease of the main business profit rate are: first, the cost of product sales is increased due to factors such as the rising price of raw materials.

From 1996 to 2001, the proportion of sales cost of textile products above Designated Size in the province accounted for 86.7%, 87.2%, 88.4%, 88.7%, 89.4%, 89.8%, respectively, which were 3.2, 4.3, 4.8, 5.3, 5.2 and 5.2 percentage points higher than that of manufacturing industry.

Two, the price of textile products continues to decline.

From 1996 to 2001, the textile retail price index (above 100) was 108.1%, 103.3%, 100.1%, 99.4%, 99.3% and 98.6% respectively, showing a decreasing trend year by year. In 2001, the index dropped by 9.5 percentage points over 1996, which was 1.3 percentage points lower than that of all retail sales indices.

The rise in cost and the decrease in finished product prices have a greater impact on the decline in profit margins of textile owners' business.

(two) the technological innovation and technological competitiveness of textile industry are relatively low.

First, the added value rate of textile industry is relatively low.

The added value rate refers to the proportion of the newly created value of the enterprise to the value of the product. The higher the added value rate, the higher the added value of the enterprise's products.

In 2001, the added value rate of textile industry above Designated Size in Zhejiang province was only 17.4%, 2.1 percentage points lower than the average level of manufacturing industry in the whole province.

The two is the low technology content of textile products.

In 2001, the output value of new products above the provincial level was only 3.5%, which was 4.3 percentage points lower than the average level of manufacturing industry in the total industrial output value of textile industry above Designated Size in Zhejiang.

The three is that textile enterprises invest less in research and development and improve the quality of workers.

In 2001, Zhejiang's textile industry above Designated Size accounted for only 7/10000 of the sales revenue of products, 18.3 points less than that of the manufacturing industry, and only 3/10000 points nine of the sales revenue for employees, 1.8 points lower than that of the manufacturing industry.

(three) the proportion of small businesses in textile industry is high and the scale benefit is not obvious.

In 2001, there were 66 large enterprises, 172 medium-sized enterprises and 2089 small enterprises in 2327 Textile Enterprises above Designated Size in Zhejiang province.

On average, the average economic value of small enterprises, such as industrial added value, product sales revenue, total assets, total profits, profits and taxes, is only between 8 and 11% of large enterprises and between 27 and 36% of medium-sized enterprises.

From the main business profit margin index, large and medium enterprises are 9.5%, small businesses are 8%, and large and medium-sized enterprises are 1.5 percentage points higher than small ones.

Among the 2327 Textile Enterprises above Designated Size, 498 enterprises had a higher profit margin than the whole province's manufacturing industry (11.3%), accounting for 21.4%; the profit margin of the main business of 347 enterprises was lower than that of the whole province's manufacturing industry, but it was higher than the average level of textile industry (8.5%), accounting for 14.9%; the profit margin of the main business of 1482 enterprises was lower than that of the textile industry, accounting for 63.7%.

That is, more than 60% of the textile enterprises have low profitability and are at a disadvantage in competition.

This is closely related to the small and numerous textile enterprises in Zhejiang province and lack of scale benefit.

{page_break}

Four, further develop and strengthen Zhejiang textile industry's countermeasures and suggestions.

Zhejiang textile industry is not only an important pillar industry of Zhejiang's industrial economy, but also an important production base for the national textile industry.

Further development and expansion of Zhejiang's textile industry is of great significance for expanding exports, increasing employment, promoting national economic development and enhancing Zhejiang's international popularity.

After China's accession to the world trade organization, the textile industry in Zhejiang will face the dual competitive pressures from home and abroad. How to win the competition and join the WTO as an important opportunity for the development of Zhejiang's textile industry is a topic before us.

Starting from the existing problems in Zhejiang's textile industry, the following countermeasures and suggestions are put forward.

(1) vigorously enhance the competitiveness of Zhejiang's textile industry.

First, we should encourage enterprises to increase investment in research and development, technological pformation and technology import from policies, establish personnel training and introduction mechanism, build cooperation mode between enterprises and research institutes and universities, and enhance the core competitiveness of textile enterprises; two, we must work hard to improve the overall competitiveness of textile industry by improving product quality, technical stalls, after-sales service and brand.

(two) relying on large and medium-sized backbone enterprises, rationally planning and co ordinate the layout to form a distinctive regional block economy.

Although the number of large and medium-sized textile enterprises in the province accounts for only 1/10 of the textile enterprises above Designated Size, the total economic volume will account for more than 1/3.

Therefore, large and medium-sized enterprises should be the core to establish a division of labor, cooperation and supporting small enterprises, so as to promote the common development of small enterprises.

At present, Zhejiang has formed the rudiment of regional block economy, such as hang Jia Hu silk (or Zhejiang silk), Shengzhou necktie, Shaoxing (Xing) Xiao (Shan) Tong (Xiang) chemical fiber, Shaoxing fabric, Haining warp knitting, Yuhang decorative cloth, Xiangshan knitted, Datang socks, Xiu Zhou weaving, Pu Yuan sweater and so on.

All localities should adjust measures to local conditions, better develop characteristic and advantageous industries, form different regional block economies, and form a new pattern of specialization, complementary and complementary advantages in the whole province.

(three) speed up the pace of information construction, build information platform, promote e-commerce, and provide information services for enterprises.

The China Textile Industry Association and China Textile Information Center have agreed to build the "China Textile and clothing trade information center" which serves the national enterprise informatization in Hangzhou, which plays an important role in promoting the development of Zhejiang's textile industry.

Zhejiang should give full play to the role of the competent departments, trade associations, key backbone enterprises and information departments of the textile industry, do a good job of Zhejiang regional information service support platform and website construction, and provide fast, accurate and convenient information services for enterprises. At the same time, we should vigorously promote e-commerce, and improve the level of enterprise management and participation in international competition through online pactions and online payment.