Central Provinces, Textiles And Clothing Looking For Opportunities For Pformation

The impact of the financial crisis on the coastal export-oriented economic zone has become increasingly obvious. The central provinces are different in the degree of extroversion.

Xinmi city (Zhengzhou's county level city) Qu Liang Garment Industrial Park signed a contract with Shandong Garment Association in June 2008, the latter planned to operate the tail cargo base, and two garment manufacturers in Shenzhen and Guangdong were also ready to enter.

"But until now, basically no action has been taken."

A local insider told reporters.

"This year, more than 20 coastal enterprises have settled down in Henan, but the big brands in the country are still far from being discussed," Li Gang, executive vice president of Henan Garment Association, told reporters. "The geographical location of Henan determines that garment enterprises only make big fuss in the domestic market."

"In 2008, Henan's clothing industry sales revenue growth is expected to be 25%, equivalent to last year."

Li Gang said.

Li Gang introduced that 70% of Henan's clothing industry was trousers, while trousers were more than 90% sold domestically. In 2008, Henan produced about 600 million trousers, and only 50% of the women's trousers production in Zhengzhou.

"In comparison, the local garment enterprises in Henan have not yet been hit by the market."

The above Henan clothing association said.

Compared with Henan, Jiangxi's clothing industry and the entire textile industry show another trend.

"The export proportion of Jiangxi's textile and garment industry is less than 30%, which is the data of Jiangxi customs statistics," Yang director, textile department of the Jiangxi provincial economic and Trade Commission's comprehensive industry management office, told reporters. "However, many enterprises invested in Jiangxi are exported through other customs. It is estimated that the external dependence of the Jiangxi textile and garment industry should be comparable to that of the whole industry, reaching about 60%."

"This determines that Jiangxi will also be affected by the coastal market."

Director Yang said.

She revealed that in 2008 1~10, the fixed assets investment in Jiangxi's textile and garment industry was 12 billion 500 million yuan, ranking seventh in the whole country and an increase of 25.11% in investment.

"The growth rate of 60% and 80% in the past year has indeed dropped greatly, but the increase is less than that of the 20% in the first half of 2008."

Director Yang told reporters.

The impact of the deterioration of the international textile market on Jiangxi's textile and garment industry is lagging behind that of the coastal areas.

Because of Jiangxi's labor cost advantages and difficulties, enterprises must first turn off the coastal factories.

"If market demand continues to be weak, next year's situation will be difficult to say. The coastal crisis will deeply affect Jiangxi."

Director Yang said.

According to Henan Provincial Bureau of statistics and business department's public data, in 2008 1~10, Henan completed investment in fixed assets of 647 billion 968 million yuan, the actual amount of foreign capital in the province was 156 billion 680 million yuan, an increase of 34.4%, and the amount of investment outside the province was less than 25% of the fixed assets investment in cities and towns.

In 2007, the total investment in fixed assets in Henan was 660 billion 916 million yuan, and the investment outside the province was 152 billion 160 million yuan, an increase of 51.6% over the same period last year, accounting for 23.02% of the fixed assets investment in cities and towns.

In 2006, the total investment in fixed assets in Henan was 484 billion 543 million yuan, and the investment in the province was 100 billion 369 million yuan, an increase of 99.32% over the same period last year, accounting for 20.71% of the fixed assets investment in cities and towns. In 2005, Henan fixed assets investment in cities and towns was 352 billion 829 million yuan, an increase of 44.9%, while the investment in the province was 50 billion 355 million yuan, accounting for 14.27% of the fixed assets investment in cities and towns.

"The growth of investment outside the province is only higher than the total investment growth in 2006. The rest of the year is lower than the total investment growth, and the proportion does not exceed 25%. This shows that Henan is basically an endogenous economy and has a low dependence on overseas markets."

An economist told reporters.

After investigation by reporters, the four provinces of Hubei, Hunan, Jiangxi and Shanxi have not yet made systematic statistics on the amount of investment outside the province.

And publicly available data show that Anhui's investment outside the province is in a blowout situation, far higher than Henan.

"At present, the generally depressed market trend has been gradually pmitted from coastal areas to the mainland, while the areas where the proportion of investment oriented industries from the coastal areas is too large is relatively large."

The scholars said.

On the website of Anhui Provincial Bureau of statistics, the industrial growth rate is high and the pressure on enterprises to increase efficiency is bigger. The article in the two analysis of the first three quarters of the province's economic situation pointed out: "(1~8) in 2008, the overall efficiency of our province's industrial enterprises was generally good, but over 80% of the profits came from 11 industries, such as iron and steel, coal, household appliances, chemical industry, automobiles, building materials, and other industries were in a small profit.

Over 23.8% of industrial losses above scale, 1.2 percentage points lower than 1~5 months, and 5.5 percentage points higher than the national average, ranking the first among six provinces in Central China.

"Henan is similar to Kansas in the United States, and only Henan and other central regions in China can serve as the center of domestic trade logistics, forming a national star logistics system. Shanghai and Guangzhou are only the center of foreign trade."

Liu Wei, director of Henan provincial government counselor and MBA center of Zhengzhou University business school, told reporters.

Liu Wei introduced that there are three restrictive factors in industrial pfer: geopolitical factors, industrial supporting factors and policy environmental factors.

"When the domestic demand is improved and the export oriented enterprises turn to the domestic consumer market, Henan will have great room for development. This needs a long-term process. It is difficult for enterprises to complete pformation in a short period of time, but this is the trend of the future."

Liu Wei said, "at present, Henan should seize this trend, improve the matching of industrial clusters, and vigorously improve the investment environment."

Yang Jing: editor in charge