Textile Export Enterprises Are Facing The Test Of Order Transfer.

In 2013, the yuan was 41 times high. But the wind has changed abrupt this year. RMB The spot exchange rate against the US dollar has been dropping all the way. Since the fluctuation of the RMB against the US dollar in March 17, 2014, the spot exchange rate of the RMB has been falling below 6.2, 6.22 and 6.23. From the beginning of the year, the RMB exchange rate has fallen by more than 3%.

The devaluation of the renminbi has given the exporters a long time to bear the pressure of cost pressure.

Export profits have risen.

"At last you can catch a breath!" Jinjiang. shoes Mr. Guo, director of the enterprise, told us that in the past two years, Spin Shoes and clothing exporters basically maintain a slight profit of about 3%. Last year, the RMB continued to appreciate. Every time they quoted prices with customers, they had to weigh them repeatedly. They were worried about the order running, and also worried about the fluctuation of exchange rate, and the profits were gone. "Since the beginning of this year, the RMB has fallen by more than 3% against the US dollar, which means that if the bill is settled in dollars, the company will be able to make profits if the exchange is settled now."

It is understood that the RMB will depreciate 1 points and export US $1 million to earn 10 thousand yuan in the settlement of foreign exchange. Mr. Guo told himself that he was stepping up the repayment and settlement of the two days. "We have just concluded a sum of US $200 thousand, which was priced at 6.08 in November last year according to the US dollar exchange rate. When it was settled, it was converted into RMB at 6.18 of the exchange rate, which directly increased the profit of 20 thousand yuan."

"Our customers are mainly in Europe and the United States. Most of them are settled in US dollars. As foreign customers place orders, they usually pay part of their loans in advance, and on the books, the expected profits have improved." Qiu Qingyun, general manager of Quanzhou Lerong bag Co., Ltd., said that the depreciation of the renminbi has relatively reduced the cost pressure of the export enterprises, to a certain extent, buffering the business pressure brought by the rising cost of labor and other costs.

Exchange rate risk should not be underestimated

Although export enterprises generally believe that the depreciation of RMB has increased profits of enterprises for a short time, the pressure of export cost has been reduced to some extent. However, some enterprises are more worried about the risk brought by the fluctuation of exchange rate.

"The reason why we grasp the foreign exchange settlement is also the risk of two-way fluctuation of the RMB exchange rate." Mr. Guo told us that the Yuan's farewell to the unilateral appreciation which lasted for many years has also increased the difficulty of business judgment. Many of the lists were taken last year, and prices were priced at the prevailing exchange rate. If the RMB continues to depreciate, it will benefit from the settlement of foreign exchange. However, there is great uncertainty in the future direction of the RMB, which in fact increases the difficulty of quotation.

Fujian textile clothing Chen Cangsong, secretary-general of the export base chamber of Commerce, said that for businesses, it has become accustomed to doing more Renminbi and shorting the US dollar in the past. When the fluctuation rate is further expanded, it is necessary to reconsider when to settle foreign exchange and hedge.

Qiu Qingyun is also worried about the risk of RMB exchange rate fluctuations. He said that when the renminbi appreciated unilaterally, the export enterprises would fully take into account the factors of RMB appreciation and price control when they quoted and signed contracts to foreign investors. But now that the RMB exchange rate has suddenly changed dramatically, foreign investors may ask for a new offer or take a wait-and-see view.

Order transfer is the biggest test.

RMB appreciation has been considered as one of the factors that affect the survival of foreign trade enterprises, because under the pressure of RMB appreciation, the cost advantage of Chinese export enterprises is further lost, and the instability of buyers is increasing. Can the depreciation of RMB bring benefits to the export enterprises?

Relative to the short-term benefits brought about by the depreciation of the renminbi, Chen Cangsong is more worried about the adverse impact of the transfer of international orders on export enterprises. "Over the past three years, 10% to 15% of orders for textile and clothing products have been lost to Southeast Asian and South Asian countries such as Vietnam, Kampuchea and Bangladesh every year."

In addition, the United States, the European Union and other Chinese commodities have adopted a number of trade protection measures, so that the international trade friction has been escalating, the export barriers of enterprises have increased, and the cost of exports has increased. "For example, Vietnam, Kampuchea, Thailand, Indonesia and other Southeast Asian countries export only 2% to 3% of the EU's textile tariffs, while China's textile exports to the European Union need to collect about 12% of the tariff." Chen Cangsong said. Exit If enterprises want to enhance their competitiveness, they should not rely on the depreciation of the renminbi, but start with the promotion of products and produce products with high added value. On the other hand, they can consider "going out" and setting up factories in countries and regions where labor costs and tariff costs are relatively low.