Five Risks In Textile Industry

"In the face of shrinking international market, domestic

Sun Huaibin, director of China Textile Economic Research Center and spokesman of China Textile Industry Federation, said at the meeting that according to the survey results of the seven provinces of China Textile Federation, the opening of textile industry in 2012 was basically stable.

Large enterprises, independent brand enterprises, and domestic enterprises have a sufficient rate of operation and sufficient capital, and the starting rate is 80%~90%. The staff return rate is about 80% after the festival, and the turnover rate is 10%~15%.

However, some small and medium-sized enterprises are facing more difficulties, especially export processing small and micro enterprises. They are facing difficulties in order reduction, shortage of employees, tight funds and difficulties in pformation. They need more attention from government and industry.

The industry faces five risks

Sun Huaibin stressed that the risks faced by the industry in the first half of 2012 increased significantly, and were concentrated in five aspects.

First, the continued escalation of the European debt crisis, which will have a significant negative impact on the international market demand. The developed countries and regions such as the United States and Europe have sluggish economic recovery, the unemployment rate remains high, the employment structure deteriorates, and consumer confidence is sluggish, which restricts the demand for textile and clothing.

It is estimated that in the first half of 2012, China's textile and clothing export demand is insufficient, and the competition pressure will be more prominent. The number of industrial exports in the first half of this year will be in a low or negative growth state.

Two, in the first half of 2012, the textile industry will continue to show the main trend of the domestic market. However, affected by the slowdown in social investment growth, the weakening of export driven economy, and the deepening adjustment of the economic structure, the consumption growth rate may slow down compared with the previous year, which will directly bring about a slowdown in the growth rate of clothing consumption.

Three, the domestic cotton market is in a state of confusion. If the reserve cotton is sold with "cost plus profit", it will drive domestic cotton prices up, and the domestic and international cotton prices will continue to widen, and the international competitiveness of textile enterprises will be further weakened.

At the same time, the price of chemical fiber is affected by fluctuations in cotton prices and international crude oil prices, which may present a concussion and increase the operational risk of downstream enterprises.

"In 2011, domestic cotton prices began to rise and fall, and cotton spinning enterprises' normal orders and operations were deeply affected.

Textile and clothing last year

The four is the obvious increase in the cost of labor in textile enterprises. The sample shows that more than 80% of the enterprises are short of employment, and the wage increase is over 15%.

Recruitment difficulties, unable to retain and improve the living treatment of workers, etc., have made the labor cost of enterprises showing a rigid upward trend.

Five, textile small and medium-sized enterprises are still faced with problems such as poor financing, high financing cost and unstable order quantity. Especially for export processing enterprises, when the appreciation of RMB is still expected, the ability to resist risks is weak. Once these enterprises are shut down too much, they will directly affect employment and social stability.

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Six enterprises to strengthen themselves

Based on the risks faced by the industry, sun Huaibin said that textile enterprises need to make greater efforts in tackling a series of factor cost problems, such as rising labor costs, raw material prices, and rising energy prices.

He suggested that enterprises should make active efforts in the following six aspects: pformation and upgrading.

First, deepen enterprise management and improve labor productivity.

In the face of the sharp rise of recruitment difficulties and labor costs, we should strengthen basic management and information application, improve labor productivity and reduce production costs.

Two, speed up technological pformation and upgrade the advanced level of equipment.

Speed up technological pformation and innovation and upgrading, including eliminating backward technology and equipment, speeding up the development of high-end textile machinery, and ensuring the share of domestic equipment.

Appropriate introduction of foreign advanced equipment to speed up the digestion and absorption of new technologies and re innovation.

Three, we should strengthen the development of new products and increase the added value of products.

We should strengthen R & D and industrialization of key technologies such as high simulation, functional, differential and high-tech fiber materials and industrial textiles, and develop personalized, fashionable, low carbon green textile consumer goods and increase added value.

Four is to strengthen the construction of independent brand and optimize the construction of marketing channels.

We should promote the development of the dominant brand enterprises at the two ends of the industrial chain and promote the matching mode of the small and medium-sized enterprises.

The acquisition and integration of foreign brand enterprises, as soon as possible to brand, marketing and other high value-added links.

Five is the use of financial instruments to resist foreign exchange market risks.

To guide enterprises to use foreign exchange market products that are constantly enriched and developed, and adopt appropriate financial instruments to avoid exchange rate risks.

Six is to increase market development and reduce trade frictions.

We will continue to do well domestic trade exhibitions, actively participate in international exhibitions, and strengthen tracking, monitoring and early warning of key export markets.

Five policy recommendations

Sun Huaibin also pointed out that for cotton, finance, taxation, exchange rate and other external environmental problems, enterprises can not digest themselves through their own efforts, and it is urgent for the state to introduce relevant policies to give attention and support.

First, we propose to stabilize the domestic cotton market.

At present, the difference between domestic and foreign cotton is large and the international cotton resources are abundant. We should seize the opportunity to expand cotton imports and reduce the cost of cotton production in textile enterprises.

This year, we should adopt a financial subsidy to store and store the reserve cotton.

Sun Huaibin stressed in particular that it is not recommended to take market auction in 2010 to avoid a further surge in cotton prices.

In terms of storage and storage access, it is suggested that only production textile enterprises be involved.

The two is to reduce the cost of bank loans.

Focusing on solving the problem of financing difficulties and financing of textile small and medium-sized enterprises, it is recommended that the regulatory authorities regulate bank floating interest rates, abolish the system of acceptance of bills of exchange, rectify the order of bank lending operations, and implement the policies of the central government to support the financing of SMEs.

Three, it is suggested to lighten the tax burden of enterprises.

To solve the problem of "high levy and low deduction" (value-added tax 17% deduction 13%), which has long troubled cotton textile industry, and lighten the tax burden of cotton spinning enterprises.

The pformation of business tax into VAT should be extended to the producer services sector of the textile industry.

Considering the employment contribution of labor-intensive industries, the enterprise income tax is allowed to deduct a certain proportion of wage expenditure.

Four, it is suggested to implement the supporting policies for small and medium-sized enterprises.

We should implement the support policies of the State Council to support small and medium enterprises, and accelerate the construction of industrial innovation platforms, public service systems and industrial alliances that benefit the small and medium-sized enterprises.

The five is to support enterprises to "go out".

Encourage superior enterprises to establish raw material bases, R & D centers and acquire brand channels abroad.

Enterprises that establish low-end production and processing bases abroad should strengthen macro guidance and prevent enterprises from coming out too quickly and reducing the impact on domestic employment.