Tianhong Textile Announces Annual Report &Nbsp; Vietnam Has Low Plant Cost.

The largest in the world Core cotton Textile supplier Tianhong Textile Group announced its 09 year performance announcement today. The HK.02678 annual report shows that the textile industry has been substantially warmer. The company's top executives have said that Vietnam has been very successful in investing in Vietnam, and its Vietnamese company is the most profitable Affiliated Companies in the company.

stay Tianhong textile In today's performance, the turnover of the company is 4 billion 88 million yuan, an increase of 9.4% over the previous year and a net profit of 286 million yuan, an increase of 33.3% over the previous year.

Hong Tianzhu, executive director and chairman of the group, told sina finance that the company set up factories in Vietnam mainly based on two aspects: labor cost and electricity cost. "Our survey found that Vietnam's labor is still lower than that of the mainland, Vietnam has 3 more electricity per kilowatt hour, also less than 5 of China's gross domestic product, and Vietnam's production capacity now accounts for nearly 1/3 of the company's total (production capacity)." He pointed out.

In addition, according to the chief financial officer of Tianhong, Vietnam has implemented four tax exemption and nine reduction policy for foreign enterprises, and has no customs duties, which is very attractive for small and medium-sized enterprises.

It is reported that Domestic textile enterprises There are not many factories abroad, and some attempts have been made in Kampuchea, Mexico and other countries.

According to the statistics of China's National Bureau of statistics, the total investment in large-scale textile projects totaled 310 billion 200 million yuan in 2009, up 13.86% from 2008. In 2009, China exported $167 billion in textile and clothing, down 10.1% from last year. In 2010 1-2, textile and apparel exports totaled 28 billion 240 million US dollars, up 29% from the same period last year, of which the total value of exports in February reached US $12 billion 640 million, up 89.3% over the same period last year.

Supplement:

Although its turnover in 2008 was 3 billion 737 million 600 thousand yuan, an increase of 14.9% over the same period, its sales in Vietnam exceeded 81 million 610 thousand yuan, an increase of 187% over the same period last year. Vietnam's factory profits are obviously more important. In 2008, the total operating profit was 214 million 200 thousand yuan, a year-on-year decrease of 9.9%, while Vietnam's operating profit changed from a loss of 3 million 940 thousand yuan in 2007 to a profit of over 42 million 910 thousand yuan.

In China, the turnover was 3 billion 225 million yuan in 2007, 3 billion 656 million yuan in 2008, an increase of 13.3% over the same period last year, and the operating profit decreased from 297 million yuan in 2007 to 230 million yuan in 2008.

Tianhong textile will expand further in Vietnam next year. A top executive of Tianhong textile yesterday told the first financial daily that Tianhong textile has launched the second phase 140 thousand spindles project after the commissioning of the first 70 thousand spindles, and has been put into operation in early January this year. It is expected that sales will reach 1 billion yuan in the whole year.

For the "heterogeneous" performance of the Vietnamese market, the executives explained that the use of imported cotton by Vietnam's factories in Vietnam was not subject to domestic cotton import quotas, and the price was much lower than domestic cotton, which was about 2500 yuan per ton. Second, Vietnam's electricity and labor are relatively cheap, and the cost of employing workers is about 1000 yuan a month.

In addition, the preferential tax rate is also an important reason for attracting enterprises. Vietnam's income tax rate is also lower than that of the domestic level, only 10%. According to the Vietnamese tax law, enterprises established in Vietnam do not need to pay income tax if they do not realize profits. From the first profit year, they will be exempt from income tax within four years, and the income tax will be reduced by half in the next nine years, which is much more favorable than the domestic income tax exemption from two reduction three.

In 2008~2009, the European Union and the United States cancelled quota restrictions on Chinese textile products, but technical barriers still exist. Other countries such as Turkey recently impose anti-dumping duties on viscose textile products in China, India and Indonesia, which do not exist in Vietnam.

But the executives also pointed out that although there are many advantages in setting up factories in Vietnam, Vietnam's textile industry is not developed domestically, and its industrial chain is not matched, and it is far from the terminal market.