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    Vietnam Offers A Low Price Of 30% &Nbsp; "Price War" &Nbsp; Chinese Textile Business Is Miserable.

    2011/2/16 9:04:00 61

    Exchange Rate Textile Exports

    Devaluation

    Viet-namese Dong

    It seems that some Chinese manufacturers are getting deeper anxiety.

    Recently, some textile and garment enterprises in China have been rising due to the rising prices of raw materials and accessories and labor costs.

    Exit

    The price is raised by 10%-15%.

    However, this has been considered a cautious price raising action, but it may face more risks because of its increasingly prominent price advantage.

    "There are already some.

    Order

    It's lost. "

    The responsible person of related foreign trade clothing enterprises told reporters that the export price of Vietnamese textile and clothing is 20% to 30% cheaper than that of China, and they worry that such a gap will widen.


    Price: Vietnam goods two or three cheaper


    Order: customer loss


    It is now a hot topic to open up any professional website for textile and apparel, and discuss the impact of the Dong's depreciation on China's textile and clothing exports.

    Last Friday, the Vietnamese central bank decided to reduce the Vietnamese shield to the US dollar's reference rate by 9.3%.

    This means that as Vietnam's largest commodity importing country, the selling price of Chinese goods in Vietnam will increase.

    At the same time, Vietnam's exports will have more price advantages.


    Vietnam, which is built on the basis of low cost and has a long trade deficit, is hard to impact on China. However, for Chinese textile and garment enterprises, Vietnam is a strong competitor.

    Vietnam's textile exports account for 19% of its total exports and are the second largest export industries after agriculture.

    A recent survey of 385 international buyers revealed that 31% of buyers surveyed said they would increase purchases from Vietnam.


    Yu Weiqiang of Shaoxing Jingwei Garments Co., Ltd. has been able to feel this change.

    T-shirts export is the main business of warp and weft garments. "But overseas customers have told us that the price of Vietnamese factories is two to 30% cheaper than ours, so they are given orders."

    Yu Weiqiang believes that there is still a gap between Vietnam and China in terms of supporting facilities and technology level, but the price is too attractive. If the Dong shield continues to depreciate, more impact will be seen this year.


    Raw materials: 18000 yuan last year, 38000 yuan this year.


    The "price war" has been a magic weapon for China to win customers. However, under the pressure of cost, Chinese enterprises seem to be somewhat powerless.


    The latest foreign trade figures reveal the ferocious momentum of soaring raw material prices.

    In January this year, the average import price of major commodities rose significantly.

    According to customs statistics, in January, the average import price of iron ore imports was 151.4 US dollars per ton, up 66.1%; the average import price of soybeans was 558.1 US dollars per ton, up 20.4%.

    "But for us, the cost rose by more than 100%."

    Yu Weiqiang told reporters that at the beginning of last year, the price of a garment yarn was still 18000 yuan / ton, and now it has risen to 38000 yuan / ton.

    Corporate profits remain at 5%. "The pressure and uncertainty of rising costs are holding us back, and it is very difficult to survive."


    A survey of 232 Chinese suppliers conducted by global resources showed that up to 41% of the surveyed suppliers pointed out that raw material prices rose by 20% or more; 74% of the surveyed suppliers said they had raised their export prices in 2010, while the export prices of Chinese products are expected to continue to rise in the coming months.


    "In the past, suppliers began to control production and operation so as to increase company profits.

    But the cost of raw materials and labor in almost all of China's export industry is rising. This method is no longer enough to withstand such pressure.

    Therefore, most suppliers choose to increase export prices or turn to high-end products. "

    Pek, President of global resources and enterprise affairs, said, "Chinese exporters must better improve their competitiveness. The impact of rising prices of products by providing better services, better quality and output is more urgent than ever before."

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