China'S Textile Enterprises Profit Margins Are Squeezed By Multiple Pressures.

Despite the three quarter

Exports have stopped falling, but the rising cost of labor, the rise of the textile industry in Southeast Asia, the increasing cost of enterprise funds, and the pressure of foreign customers to take the opportunity to reduce prices still have pressure factors on the development of the textile industry.

This year, the overall growth rate of textile and garment industry will decline sharply compared with that of last year. Many small and medium enterprises will face the risk of being eliminated.

Many respondents said that the current domestic clothing brands can not go out, prices can not rise, and international brands can not be the same, international buyers take the opportunity to lower prices, further reducing the profit margins of enterprises.

A small business owner revealed that at present, the capital cost of enterprise operation is relatively high, and the cost of bank financing is above 8% annually. The small and micro garment enterprises in the whole industry can hardly keep up for nearly 1/3. Many business owners have already lacked confidence and are paying close attention to the implementation of "eight countries" and related policies.

In this regard, Zhu Hongren, chief engineer of the Ministry of industry and information technology, said that the gross profit of the textile industry decreased by 1.1% in the 1-8 months of 2012, and the profit margin of the textile industry dropped by about 12% compared with the same period last year. The deficit of the deficit companies increased by more than 100% over the same period last year.

According to the press, the net profit margin of the textile and garment enterprises exhibiting at the Canton Fair is generally only 1%-3%, and those exhibitors are basically better developed enterprises in the industry. If 16% of the export tax rebates are excluded, the majority of the profits will be contributed to the profits.

They are running at a loss.

The head of the Zhejiang provincial company told reporters: "this year's textile and clothing trade situation is very bad, the order of the enterprises is declining, sales in Europe have dropped by about 15%, the US market has dropped by about 7%, the Japanese market has fallen by more than ten percent, and the overall profit has dropped by about 10%.

The official said that the benefits of many preferential policies introduced by the government were mostly taken away by foreign customers, and the benefits from enterprises were less.

Raymond Lam, executive director of Hailing import and Export Trading Co., Ltd., Quanzhou, said that the foreign trade profit rate of its garment industry was very low. However, due to the poor credit of some foreign customers, the company often met with customers' regret and suffered a lot of economic losses.

He hoped that relevant departments could publish a list of foreign businessmen with bad credit records to facilitate enterprises to avoid foreign trade risks.

While Chinese enterprises are under pressure, the textile and garment industry in Southeast Asia and Vietnam, such as Vietnam and Bangladesh, are rising rapidly, relying on cost advantages, which has caused tremendous competition pressure to our enterprises.

Reporters at the Canton Fair learned that at present, international garment retailers have increased procurement from Southeast Asia, reducing the demand for Chinese enterprises.

According to the data released by the European Union, the number of shirts imported from China in the first half of this year dropped by 14.1% compared with the same period last year. The imports from Bangladesh, Vietnam and Kampuchea increased by 1.3%, 17.1% and 30%, respectively.

The report of the Vietnamese Customs Department shows that Vietnam has made textiles in the first 9 months of this year.

Compared with the same period, the growth rate of footwear exports increased by 7.4% to 11 billion 140 million US dollars, especially 12.5%, to 5 billion 220 million US dollars compared with the same period last year.

Among them, exports to the European Union, the United States and Japan increased by 2.1%, 19.2% and 33.5% respectively.

Li Jin Chang, deputy general manager of Vietnam National Textile and Garment Group, said that this growth is very significant in the context of the global economic turmoil. Looking forward to the fourth quarter, Vietnam's textile and garment industry exports will grow further, and some manufacturers' export orders have been accepted at the end of the first quarter of next year.