Reduce Operational Risks To Ensure Steady Progress In Textile Industry

In March 6th,

Sun Huaibin introduced that 2011 was the year when the "12th Five-Year" plan was opened, and overall, the main economic indicators of the industry maintained a relatively fast growth, and the operation situation was basically stable.

However, all kinds of risks faced by the operation of the industry increased significantly compared with the previous year. The international market continued to slump, raw material prices fluctuate, production costs continued to rise, and the financing environment contracted and other factors increased the operating pressure. The growth rate of main economic indicators showed a slowing down trend, and the export volume and industry profit growth declined particularly.

In particular, small and medium enterprises of textile industry still face problems such as poor financing, high financing cost and unstable order quantity. Especially for export processing enterprises, under the condition that the appreciation of RMB is still expected, the ability to resist risks is weak, and it is also more difficult for export oriented processing enterprises to turn into brands.

Once such enterprises are shut down too much, they will directly affect employment and social stability.

According to statistics, in 2011, 36 thousand industrial enterprises above Designated Size realized industrial output value of 5 trillion and 478 billion 650 million yuan, an increase of 26.8% over the same period last year, and sales value of 5 trillion and 360 billion 170 million yuan, an increase of 26.86% over the same period last year.

The total investment in fixed assets over 5 million yuan in the whole industry reached 679 billion 910 million yuan, an increase of 36.3% over the same period last year.

The total export volume of textiles and clothing was US $254 billion 120 million, an increase of 19.9% over the same period last year. The export price rose by 19.3% over the same period last year, and the volume of exports increased by only 0.5% over the same period last year.

Sun Huaibin said that although all kinds of indicators maintained a relatively rapid growth, the growth rate was in a state of decline, especially in the export market, mainly because price growth pushed up its growth.

Last year, the export volume of the industry was mainly due to the decline in the quantity of cotton products.

Because cotton prices have been falling sharply last year, cotton products have been placed on a difficult position, and the cotton textile industry has lost more than 10% of its losses. Meanwhile, domestic cotton prices are much higher than the international cotton prices, which greatly weakened the international competitiveness of domestic cotton products.

Sun Huaibin also said that although the country carried out in September last year,

It is worth mentioning that recently, India, the second largest exporter of international cotton, issued a statement prohibiting the export of cotton, which will have an important impact on the international cotton price and stimulate the promotion of US cotton prices.

"The industry is highly concerned about the cotton issue and needs to be supported by relevant policies."

Sun Huaibin said that the industry expects the relevant departments of the state to adopt a fiscal subsidy for the storage of cotton reserves this year and implement it in a timely manner. In terms of cotton imports, in addition to the established quotas, it is hoped that additional sliding quota quotas will be added to increase the import of International cotton resources and stabilize cotton prices in the country.

"The industry is not afraid of the rise or fall of raw materials. The fear is that prices will rise and fall."

From an international perspective, the continued escalation of the European debt crisis and the sluggish recovery of the world economy will have a significant negative impact on the consumption of the international market.

In the first half of 2012, China's textile and clothing export demand and competition pressure will be more prominent. In the first half of this year, the number of industrial exports will be low or negative.

From the domestic perspective, the downward pressure on economic growth has further increased, the growth of social investment has slowed down, and the growth of household consumption has become more difficult.

At the same time, when the price of raw materials fluctuates, the labor costs of enterprises show a rigid rise, and the financing environment of small and micro enterprises has not yet achieved substantial improvement, textile and apparel industry will face greater difficulties as a competitive industry.

Therefore, speeding up structural adjustment and pformation and upgrading, striving for national policy support, reducing operational risks and promoting steady economic growth are an arduous task facing the textile and garment industry.

In order to ensure the smooth and healthy operation of the industry, sun Huaibin believes that the Chinese Textile Federation will actively pay attention to the difficulties that the enterprises themselves can not solve, and communicate with relevant departments of the state in an appropriate time to make efforts to solve the difficulties faced by the enterprises.

In addition to the cotton issue, the state should further introduce policy support in reducing the cost of bank loans, lightening the tax burden of enterprises, implementing the supporting policies of small and medium-sized enterprises, and supporting enterprises to "go out", so as to help enterprises overcome difficulties, stabilize employment, pform and develop, and create a good environment.

Sun Huaibin particularly talked about the hope that governments at all levels should pay close attention to the survival of enterprises, implement the support policies of the State Council to support small and medium enterprises, and accelerate the construction of industrial innovation platform, public service system and industry alliance that benefit the small and medium-sized enterprises.

For textile and garment enterprises, sun Huaibin indicated that they need to make greater efforts in tackling a series of factor cost increase, such as rising labor costs, raw material price fluctuations, and energy and power prices.

Enterprises should strengthen basic management such as quality management, financial management, equipment process management, warehousing management, logistics management and so on, improve labor productivity and reduce production costs; speed up technological pformation efforts, upgrade the advanced level of equipment, start from the source, strengthen new product development, strengthen R & D and industrialization of key technologies such as high simulation, functional, differential and high-tech fiber materials and industrial textiles, increase value-added, strengthen independent brand building, optimize marketing channel construction, use financial instruments to resist risks in foreign exchange market, increase market development and reduce trade frictions.

Sun Huaibin mentioned in particular that in strengthening brand building, we need to build a successful mode of Chinese national brands, that is, to promote the development of dominant brand enterprises at the two ends of the industrial chain, and to promote the mode of supporting small and medium-sized enterprises.

This model has already been shown in the domestic textile and garment industry.

For example, "red bean" now has more than 400 small and medium-sized supporting enterprises, jointly producing products for "red bean" and developing together, and jointly strive to make the national brand bigger and stronger and promote the pformation and upgrading of the industry.

Sun Huaibin also reminded us that while encouraging enterprises to "go out", we should see neighboring countries such as Vietnam and Kampuchea. Although their labor costs are low, their space and capability to accommodate large areas of industrial pfer are limited, and their conditions in infrastructure, power supply and industrial chain matching are inferior to those in China.

Therefore, the government should strengthen the macro guidance for the establishment of low-end production and processing enterprises abroad, prevent large areas from overflowing quickly and reduce the impact on domestic employment.