Textile Industry Has A Bright Future. Accelerated Loss Of Mainland Competitiveness

The mainland's textile industry is in the biggest operational crisis since the beginning. Power shortage, shortage of labor and raw materials soaring have already been hard pressed by the industry, especially in recent years, and the trend of RMB appreciation is obvious. The textile industry is worried that the competitive advantage will last more than 3 to 5 years. The industry is claming for the government to speed up the adjustment of the textile and garment industry. Tax rebate structure Otherwise, there will be a new wave of Bangladesh.

Competitive advantage or maintenance for 3 to 5 years

Although China is a big exporter of textiles, the recent competitiveness is accelerating, the operation of the industry is getting harder and harder, the pressure on the appreciation of the renminbi, which has seriously eroded the profits of the industry, and facing the electricity limit, the lack of work, and the shortage of workers, Taiwan. Raw materials It is hard to say whether the impact of adverse factors such as rising prices will last 3 to 5 years, especially the rise of Bangladesh, and the duty-free concessions to export the European Union. The textile industry in Bangladesh has become the biggest competitive rival of the mainland in the future.

Recently, the head of a textile factory in Nanjing visited Southeast Asia and Bangladesh, and found that the tax rebate structure of the mainland's textile industry is not hastening to speed up. The prospect of the mainland's textile industry is bleak. However, the unceasing appeal of businessmen is like a stone in the sea.

Bangladesh textiles tax exemption

He revealed that the rise of Kampuchea and Bangladesh has led the industry to rethink whether to shift production bases to these countries. The labor Wages are also very low, and the minimum wage is only 1662 Taka, equivalent to 180 yuan. The Bangladesh government is attracting foreign investment with tax concessions. Many textile companies are starting to take heart.

He pointed out that the mainland's textile exports enjoyed the duty-free preferential treatment of advanced countries. Now these tax-free conditions are slowly shifting to Bangladesh. For example, the mainland's textile exports to Japan, Canada and Australia are about 18 to 23% of the import and export duties. Instead, Bangladesh textiles are duty-free.

The textile industry believes that the current tax rebate for clothing and fabrics is 16%. The government should readjust the tax rebate structure of textile exports, raise the tax rebates for clothing and reduce the tax rebates, which will increase the price of cloth in the international market. This will make the Bangladesh textile industry, which relies heavily on imported fabrics, weaken its competitive advantage because of the rising cost of imported fabric.

As a matter of fact, Bangladesh is also very active. In order to speed up the export of textile products, the necessity of modifying the export duty is being assessed. If the mainland textile is still maintained, it will force the mainland textile industry to move out of Bangladesh.