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

    2011/7/20 14:32:00 44

    Prospect Of Textile Industry

    Taiwan's Wang Bao reported that although mainland China is

    textile

    However, the competitiveness of the exporters is accelerating. The operation of the operators is getting more and more difficult. The pressure of RMB appreciation has seriously eroded the profits of the industry. With the impact of the unfavorable factors such as power shortage, shortage of labour and raw material prices, it is hard to say whether it will maintain a good 3 to 5 years.


    The mainland textile industry is in the biggest operational crisis since its beginning.

    Electricity shortage, shortage of workers and soaring raw materials have been hard pressed by the industry, especially the recent trend of RMB appreciation, which makes the textile industry more promising.

    The textile industry is worried that the competitive advantage will last more than 3 to 5 years.

    adjustment

    The tax rebate structure of textile and garment industry will lead to a new wave of Bangladesh.


    Competitive advantage or maintenance for 3 to 5 years


    Taiwan's "Wang Bao" reported that although mainland China is a big exporter of textiles, its competitiveness has been accelerating, and the operation of the industry has become increasingly difficult. The pressure of RMB appreciation has seriously eroded the profits of the industry. With the impact of unfavorable factors such as power shortage, shortage of labour and raw material prices, it is hard to say whether it can maintain 3 or 5 years of good prospects. Especially the rise of Bangladesh and the export of the EU's duty-free concessions. Bangladesh's textile industry 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 or not to shift production bases to these countries. Bangladesh has not only abundant labor force but also low wages, with a minimum wage of 1662 TAC, which is 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 textile exports of the mainland had enjoyed the advanced countries.

    duty-free

    Preferential tax conditions are now slowly shifting to Bangladesh. For example, now the mainland's textile exports to Japan, Canada and Australia are about 18 to 23 yuan in import and export duties, but 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.


     

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