RMB Short Term Depreciation Difficult To Understand Foshan Textile And Garment Export Dilemma

Recently, the RMB exchange rate against the US dollar has shown signs of decline, which has little impact on the export oriented textile and garment enterprises in Foshan. The trend of RMB appreciation is hard to change.

At the same time, recently, the state has passed the export rebate rate of textile, clothing and some light industrial products again. It is said that the textile will increase to 17% as expected. The head of Foshan textile industry association indicates whether it can reach 17%.

It is reported that people in the foreign exchange market have shown a devaluation trend against the US dollar in recent days. Some agencies expect that the renminbi will depreciate in the next few weeks or months. 5%-10%. Wu Haoliang, Secretary General of Foshan Textile Industry Association, said that the short-term adjustment of the RMB against the US dollar will not change the trend of long-term appreciation.

Whether the export tax rebate can be raised to 17% or not until the results are announced.

The China Textile Industry Association Information Center also said that they had not yet received the news that textile export tax rebates would be raised to 17%.

It is reported that this will be the fourth large-scale increase in export tax rebate rate in the second half of this year. The last time we raised the export tax rebate rate for some commodities was only about a week ago.

In July 31st of this year, China raised the export rebate rate from 11% to 13%, and then raised to 14%. in October 21st. If the export tax rebate is raised to 17%, it also indicates that the export tax rebate rate of textile industry has reached the highest level in history.

Next year or the coldest June and July textile and garment export tax rebate rate will rise to 17%, which is good news for large and medium-sized textile and garment export enterprises.

"Now the profits are less than 3%, and the export tax rebates with a 3 percentage point increase will be very helpful for export oriented enterprises."

Wu Haoliang said that the biggest problem in the textile and garment industry is not that the export tax rebates are not high enough, but that the export orders have been sharply reduced.

"Now many companies have told me that they should have received many orders for next year, but many companies have no orders, especially in Europe and America, and we are mainly targeting Europe."

A boss of a textile enterprise in Xiqiao, Foshan, also said that the orders received at this year's fair were very few, and there was also a cancellation of the purchase, because the desire to buy foreign markets decreased.

In the 1-10 months of this year, the export of Foshan's textile and clothing increased by less than 8% compared with the previous year. Almost all of them reached 15%. in the past years. At the same time, 6 and July are the off-season of clothing industry. Therefore, 6 and July are expected to be the most "cold" time for the clothing industry next year.

It is understood that many small garment manufacturers have been ahead of the holiday, it is estimated that 30% of enterprises will fall in the cold winter.

Yang Jing: editor in charge