Shenzhen'S Textile And Garment Industry Will Be Reshuffled Again

The Ministry of Finance and the State Administration of Taxation announced that from November 1, 2008, the export tax rebate rate of some labor-intensive and high technology and high added value commodities should be appropriately raised, and the export tax rebate rate of some textiles and clothing will be raised to 14%.

Recently, reporters visited Shenzhen's textile and garment industry to understand that the increase of export tax rebate rate will help increase the profits of textile and garment industry, but the growth rate of textile and garment exports will decline, which is also related to factors such as the rapid expansion of the capacity of the industry, the disorderly competition in the market, the change of the RMB exchange rate and the rising of raw materials.

Fortunately, the textile and garment industry in Shenzhen has a high degree of marketization and has been adjusted earlier.

Of course, the financial crisis will undoubtedly further promote structural adjustment of the industry.

The industry has obviously felt the impact. Shenzhen's China silk enterprise Limited by Share Ltd responsible person briefed reporters that the industry had a higher expectation of raising the export tax rebate rate. There are two points expected to increase by one percentage point to 14%, the proportion is still relatively small.

The responsible person of Shenzhen Huaxing Garments Co., Ltd. also expressed the same view that the export tax rebate rate was lower than market expectations.

It is reported that at present, 80% of the company's products are exported to the European Union and the US market, and the company obviously feels the impact. Fortunately, the European market is still good. The company produces high quality evening wear with high added value.

"Textile and garment export enterprises are very sad, because we have bigger factories, larger customers, and no bright west side, so the days are getting on."

Hua's official said frankly that the US market accounted for 60% of China's exports in the past year, and now the European market accounts for 50% of the export share.

The company has also changed its strategy and adopted small batch and multiple varieties to increase the cost of work to ensure the company's sales.

At present, orders are usually followed by manual orders and products with high added value.

Generally speaking, small and medium-sized enterprises are generally sad. The textile and garment export enterprises with high value-added products generally reflect that they can also cope with the crisis, especially after the central government adjusts the export tax rebate rate, which directly increases profits for the company.

Small and medium-sized textile and garment export enterprises generally reflect the sad days. These small and medium-sized enterprises have a relatively simple foreign guests. Once the customers are in trouble, they can hardly survive without any problems.

In particular, some textile and garment export enterprises which rely on low-grade jeans and simple cotton fabrics have been facing a survival crisis.

The adjustment of the export tax rebate rate is not enough to change the current situation of the industry downturn.

A company official said in an interview with reporters, however, the textile and garment industry in Shenzhen has a high degree of marketization and adjusted earlier. Some brand enterprises have taken a firm foothold in the domestic market, and some of the branding enterprises that have done well in the domestic market are quite prosperous this year.

Under the pressure of the financial crisis, the textile and garment industry in Shenzhen is still speeding up adjustment, and the market is bound to be eliminated.

Professor Luo Dan, vice president of South of the Five Ridges College of Zhongshan University, said that the decline in export growth this year is mainly reflected in the export of traditional bulk commodities, especially clothing and clothing accessories and plastic products.

Mei Xinyu, a researcher at the Ministry of Commerce, said that in the future, the advanced manufacturing industry dominated by mechanical and electrical products is the future of China's sustainable economic development, while the clothing and textile industry should gradually shift to domestic demand.