The Clothing Industry Needs To Be Alert To The Credit Crisis Triggered By The Credit Crisis.

During this year's national day, Premier Wen Jiabao went to Wenzhou Bai Xian dresses Co., Ltd. to inquire into the production and operation of small and medium-sized enterprises, small loan companies and private credit in detail.

This is undoubtedly a great inspiration for the vast number of people in Wenzhou.

Clothing is one of the pillar industries in Wenzhou. There are 2777 kinds of production and circulation enterprises, of which nearly 80% are small and medium-sized enterprises.

The impact of this lending storm has made many small and medium-sized enterprises feel pressure.

So, is the clothing industry in Wenzhou affected? What is the current situation of the funds of Wenzhou's clothing enterprises? In this regard, the reporter recently interviewed Zheng Chenai, President of the clothing trade association of Wenzhou.

Wenzhou garment industry is stable in production and operation.

The latest statistics from Wenzhou Customs show that in September this year, our clothing exports amounted to US $188 million, an increase of 26.73% over the same period last year.

From the first three quarters of this year, our clothing exports amounted to US $1 billion 633 million, an increase of 37.41% over the same period last year.

"The fundamentals of the clothing industry in Wenzhou are good. Generally speaking, the production and operation in the industry is basically stable, and the impact of the loan crisis is not serious."

Zheng Chenai told reporters that the chamber of Commerce recently held a meeting of industry secretary general, and visited more than 50 enterprises to understand the situation.

By the end of 2010, there were 1921 manufacturing enterprises and 856 business and circulation enterprises in 2777 garment enterprises in our city, and the output value was 62 billion yuan.

At present, there are 26 enterprises in the garment industry with over 100 billion yuan in output value, over 7 yuan in one billion enterprises and 3 in listed companies.

The clothing industry has become one of the important pillar industries of Wenzhou's economy, and has become one of the three major garment bases in our province and one of the five major industrial distribution areas of the national garment industry.

However, Zheng Chenai said that 86% of Wenzhou clothing enterprises do exist low end of industrial structure, weak core competitiveness of enterprises, low value-added products and poor risk resistance.

At the same time, due to the influence of international and domestic economic and financial environment, especially in the current labor and labor cost increase, raw material prices, financing costs and other factors, a number of enterprises have also appeared tight chain of funds, production and operation of lending pressure is still grim.

Vigilance industry pformation to enhance the emergence of stagnation

For more than half a month, with the efforts of all parties, enterprises' self-help, reorganization and other actions are being implemented step by step.

In this regard, Zheng Chenai believes that we should continue to fight hard drugs to solve the real financial difficulties of enterprises.

"If the year is close, if the status quo is not effectively resolved, then the new financing and lending crisis in Wenzhou is likely to erupt at the end of the year, which will lead to a crisis of pition stagnation and even the final credit crisis of Wenzhou's clothing enterprises."

Zheng Chenai said, according to his understanding, entrepreneurs are most worried about is that after the repayment of loans, if the bank fails to renew loans in time, enterprises unable to repay other forms of loans, will lead to capital chain rupture.

In addition, the fourth quarter of the year is the peak season for garment enterprises' production and sales. The demand for capital turnover is huge, and it often reaches 2 to 3 times normal. This time is also the peak period for clothing enterprises and private lending.

At present, because of the "lending storm", private lending has been very difficult. Creditors have made advance loans and bank loans have been approved for a long time.

In addition, under the current situation, some entrepreneurs' confidence index has dropped, and under the pressure of funds, some enterprises have reduced investment in technological pformation, R & D, market expansion and brand promotion for pformation and upgrading.

In the long run, Zheng Chenai believes that this lending crisis has begun to affect the credibility of Wenzhou enterprises.

"Before the industry business pactions credit is customary, but now raw materials providers, OEM manufacturers and so on began to require Wenzhou clothing enterprises cash pactions, and even appeared the other side deliberately pressing goods, no funds do not deliver the phenomenon, the chamber of Commerce came to mediate before finally solve the problem."

Zheng Chenai said that this means that Wenzhou will also respond to the credit crisis from the market.

It is suggested that various measures should be taken to reduce the pressure on enterprises to repay loans.

Many crises are not indestructible.

Recently, the city clothing trade association has begun to make a thorough analysis of its loans and its ability to repay loans.

"In the short term, the loan repayment pressure can be reduced by extending loans and reducing financing costs."

Zheng Chenai said that enterprises with good management and scale investment have suggested that the government coordinate banks to pform their loans into medium and long-term loans, so as to avoid their financing from private sources and increase financial risks. At the same time, banks should be actively coordinated to increase financial support for clothing enterprises, reduce loan interest rates, reduce unreasonable fees, and strictly prohibit other compulsory sales of financial derivatives, not to borrow money or to lend money.

For enterprises that may have problems at present, Zheng Chenai suggested that the trade associations should play a role in urging enterprises to control investment risks and enable enterprises to adjust the scale of credit and reduce credit risks through means of share pfer, pfer of property rights and reorganization.

"The government should speed up the establishment of two tier markets, such as equity and property rights, so that creditor's rights can become equity."