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Foreign Trade Textile Enterprises Under Internal And External Troubles

2014/5/20 16:00:00 37

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Foreign Trade Textile Enterprises Gu Xinyi

Gu Xinyi's inner confession may be sour, but the value of this group of people is that under the grand narrative background of reform, we should not ignore the ups and downs of people behind them. Their stories and reforms together constitute the present China.

The rainy days of P > May continued. The worry of Gu Xin Yi was like the rain outside the window. "I don't know how long it will last if I go on like this."

Gu Xinyi pointed to a factory in front of reporters and said, "what a good factory it is, it can hardly run now."

Gu Xinyi, 66 years old, is the chairman of the board of directors of GUI Shi Di Trading Co. Ltd., mainly engaged in garment foreign trade business.

His factory is located in a development area of Haiyan County, Zhejiang province. It is one of suppliers of GUI Shi Di commerce and Trade Co., Ltd., because the original boss could not operate, so as to avoid the "zero cost" way of rent for factory buildings and equipment, and entrusted him to operate for 5 years.

In order to avoid the trouble of the company's debts, he registered Zhejiang GUI Di dress company.

For this reason, Gu Xin Yi had to travel frequently between Shanghai and Haiyan.

scenery no longer

in a cold rain, pedestrians between the 3 rows of factories in Gui Shi Di dress factory in Zhejiang are scarce and lifeless.

"the original 3 rows of buildings are all workshops, and now the 2 row is empty, used for warehouses, stacking up things."

Ye long, director of the office of Zhejiang GUI Di clothing company, lamented the "International Finance News" reporter, "thirty years Hedong, thirty years Hexi ah."

"the factory has been in full swing. In 2007, 2008 and 2009, we have to achieve one hundred million yuan output value every year. From 2010, we went from bad to worse, only about 40000000 yuan last year."

Ye long reluctantly said, "before the situation is good, the wages of workers are low, the price of orders is high, the country has preferential policies, and now there is nothing."

Ye Long revealed that the current situation is that in the first half of the year, the list can not lose money, and the boss has been very happy.

"Because we usually lose 20%."

for the difficulties faced by factories, ye long summed up three factors.

"One is the low price of the list, the second is difficult for workers to recruit, and third, the cost of human resources is rising."

in the middle workshop where the factory was open, the reporter saw that seventy or eighty men and women workers were methodically cutting, many middle-aged women.

Nearly half of the machines behind are empty.

"I am familiar with this side. The conditions and treatment in the factory are very good."

The head of the sewing workshop, Gu Mou, told reporters that he was a local resident and had been in the factory for six or seven years. He did not plan to change places.

young people's thinking is quite different. Sewing worker Liu told reporters that he is also a locals and has been working as a sewing worker.

"It has been two or three years since we came to this factory. If we get higher wages elsewhere, we will still change places."

Less than 20 years old this year, Xiao Yu is from Yunnan. He has worked for four or five years. Xiao Yu told the reporter shyly, "first come out to earn some money, learn something, then go back to Yunnan's old home to open a clothing store."

"now fewer than 200 workers have been cut, and over 800 have been reduced by more than 3/4.

The factory originally had more than 1300 people, now only more than 300 people, also reduced 3/4. "

"in the old factory, 70% of the workers in the field are now coming back, 70% of them are locals."

Ye Long said, now workers are hard to recruit.

"Young people do not want to be a textile worker and feel hard, so most of the local workers are forty or fifty years old, and the number of migrant workers is also decreasing.

Because local factories have been set up, outsiders are more willing to work in their hometown. "

"P", for this reason, Gu Xin Yi changed the rules of clothing companies before, raising wages by 10%, and settling them monthly. The average wage of workers is now four thousand or five thousand yuan, two times higher than before 2010, but even this is still difficult to recruit workers.

Zhejiang GUI Shi Di garment factory was once an excellent local enterprise in Haiyan, and won many affirmation of the local government.

Today, the situation can not help but sigh.

"our burden is heavier."

Ye Long said, "as a labor-intensive enterprise, there are more people, and social security is sure to pay more, the wages are higher, and the burden on the garment industry is heavier."

Director Ye feels that enterprises have solved the employment problem of many labor forces, and if factories fail, there will also be negative effects.

entangled foreign trade

the dilemma of Zhejiang GUI Shi Di dress factory seems not to be lonely.

not far from Zhejiang GUI Shi Di dress factory, another similarly splendid garment enterprise has suffered the same fate as Zhejiang GUI Di garment factory. Most of the production lines have been shut down and the operation is in trouble.

"in the past two years, my list of foreign trade has been completely abolished, mainly in the domestic market."

Yin Shenglin, general manager of Guangzhou Tian Mei dyeing and printing company, told the international finance daily that the foreign trade situation is very poor now.

Previously, Yin Shenglin's company mainly focused on foreign trade.

The pain of Gu Xinyi P has been reflected in the overall situation of foreign trade.

According to latest customs data, in the first 4 months of 2014, the total value of China's imports and exports was 8 trillion and 100 billion yuan, down 3.1% from the same period last year.

Among them, exports of 4 trillion and 160 billion yuan, down 4.8%; imports 3 trillion and 940 billion yuan, down 1.2%; trade surplus of 215 billion 400 million yuan, a substantial reduction of 42.9%.

In dollar terms, the total value of China's imports and exports in the first 4 months was 1 trillion and 324 billion 320 million US dollars, down 0.5%.

Among them, exports amounted to 679 billion 780 million US dollars, down by 2.3%; imports of US $644 billion 540 million, an increase of 1.4%; trade surplus of US $35 billion 240 million, a decrease of 41.4%.

no matter in Renminbi or in US dollars, China's total foreign trade volume is declining in the first 4 months.

in the international market, we are further divided.

at present, as the main trade target, the growth of Sino US bilateral trade volume is disappointing.

As China's second largest trading partner, Sino US trade has dragged down the overall growth of China's foreign trade.

Before April, Sino US bilateral trade totaled 1 trillion and 30 billion yuan, an increase of 2.4%.

In the first 4 months, bilateral trade between China and ASEAN totaled 883 billion 70 million yuan, an increase of 1.2%.

Affected by the situation in Ukraine, the Russian economy has slipped, and bilateral trade between China and Russia has increased by 177 billion 700 million yuan, an increase of 0.7%.

Bilateral trade with Japan totaled 624 billion 340 million yuan, an increase of 1.6%.

The total trade volume between the mainland and Hongkong was 632 billion 910 million yuan, a drop of 33.1%, and the total value of bilateral trade with Taiwan was 360 billion 650 million yuan, down 18.8% compared to the same period last year.

Before April, China's processing trade imports and exports amounted to 2 trillion and 550 billion yuan, accounting for 31.5% of total foreign trade, down 6.5%, of which 1 trillion and 610 billion yuan was exported, down 6.1%. P

The surplus in processing trade was 670 billion 780 million yuan, a decrease of 4.8%.

some experts said that China's foreign trade growth factors and constraints are changing: labor costs have entered a rising channel, the external cost constraints such as resources and environment faced by enterprises have increased, and the new growth pattern supported by technological innovation has not yet been formed, and the export space has been squeezed.

increased foreign aggression

In May 14th, a large scale riot broke out in some parts of Vietnam, and some Chinese factories were hit by P.

in fact, apart from these abnormal behaviors, Vietnam's other measures also worry domestic enterprises.

"is anyone noticing Vietnam now? Since 2007, our shirts, jeans, knitted garments and a large number of factories have gone to Vietnam to run factories."

Gu Xinyi anxiously told the international finance daily that more serious problems are still behind: Vietnam is trying to join the TPP (p Pacific Strategic Economic Partnership Agreement). If successful, Vietnam's exports to the United States are zero tariff, but China's clothing exports to the United States, chemical fiber products levy 23% tariffs, clothing levy 16%-17% tariffs.

Gu Xinyi said, "now that China's fabric export is not refunded, seventy or eighty of Vietnam's fabrics come from China. If you make shirts, one metre of fabric will be shipped to Vietnam from China to about $1, while Vietnam has a tax rebate of 16%. That is to say, although Vietnam buys Chinese fabrics, it costs almost the same fabric that Chinese enterprises buy in China", "according to Gu Xinyi.

in addition, the cost of human resources is also an advantage of Vietnam.

Domestic textile workers now earn at least 3000 yuan, which is 500-600 dollars for the US dollar and 150 for Vietnam.

Gu Xinyi said with a bitter smile, "many of China's fabric factories have gone to Vietnam to open factories."

July 2013, China's Tianhong textile group began to launch a large factory near the border city street, Vietnam, covering an area of about 350 thousand square meters.

According to the performance of Tianhong textile group last year, the total assets of the company at the end of last year were 8 billion 870 million yuan, and Vietnam accounted for 32.6%.

the second phase of the new workshop of Tianhong Textile Group in the north of Vietnam is about 258 thousand spindles project launched in the second half of last year. It is estimated that the total investment will be around 550 million yuan this year, and will be put into operation in July this year. When the production base of Tianhong Textile Group in Vietnam will have the capacity of about 1 million spindles, it will become the largest yarn production group in Vietnam.

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"P"! "--EndFragment--" earlier, Japan's "Nikkei Asia review" said that if negotiations can finally reach an agreement, then the United States is likely to abolish tariffs on textile and sewing products in Vietnam.

Vietnam exported about $18 billion worth of textiles in 2013, of which more than half sold to the United States.

Less than P, behind the drop in data is the positive result of the TPP agreement that Vietnam is about to join.

With the advance of the negotiation process, more and more American textile enterprise orders have also run from China to Vietnam.

P, Vietnam's cotton and yarn industry association and vice president of Vietnam textile and Garment Association, Wen Jun, said that once Vietnam signed TPP, FTA and the customs union agreement with Russia, Vietnam's tariff rate on textiles exported to these markets will be greatly reduced. It is expected that more foreign businessmen will enter Vietnam to invest in the production of yarn, textile, dyeing and finishing products and exported textiles in the future.

Li Dengying, former president of the Central Economic Management Research Institute of Vietnam, said recently that if TPP was negotiated, the tariff rate of clothing and textiles exported from Vietnam to the United States would drop from 18% to zero.

Therefore, Vietnam's clothing and textile exports to the United States will grow rapidly.

P Vietnam Vietnam Textile Association's data show that Vietnam's exports to the United States and Japan will continue to increase. Over the next period, Vietnam's textile exports will account for 50% of Southeast Asia's exports.

It is estimated that Vietnam's textile exports will reach US $50 billion by 2025.

Some experts predict that Vietnam will become the world textile production center.

TPP did bring many preferential policies to Vietnam, such as zero tariff to enter the North American market.

In contrast, China's yarn exports to North America, the amount of tariff collection is much higher: pure cotton products 16.6%, chemical fiber 30%, chemical fiber, cotton blend 24%.

And the fall of tariffs will undoubtedly greatly increase the profit margins of garment factories.

Foreign media said that Chinese companies are showing strong interest in Vietnamese textile enterprises, and they hope that once the TPP comes into force, they will regard the Southeast Asian country as an export base for the United States.

At present, domestic apparel manufacturers such as Tianhong and YOUNGOR (7.32, 0.19, 2.66%) have invested and set up factories in Vietnam. P

Compared with the development of Vietnam's textile industry, P has become more and more difficult.

Data show that in 2014 before February, China's exports of textiles and clothing decreased by 33.99% compared to the same period, while Vietnam's exports in the first two months of 2014 increased by 19.3%.

This year, a sharp contrast with the active scene of Vietnam's textile and garment industry exhibition is the sluggish Chinese market.

At the just concluded Canton Fair, China's textile and garment exports reached 1 billion 740 million US dollars, down by nearly 1/4 compared with last year's Spring Fair.

exchange rate distress /p >

Besides P, there are also internal worries.

In addition to Vietnam's market share, another factor that worries Gu Xinyi is the RMB exchange rate.

"to me, the Renminbi should not be lowered, but it is not at the right time."

Gu Xinyi told reporters "Tucao".

"Now that we are taking orders, the renminbi has fallen.

When exports were exported in August and September, the renminbi was likely to rise again, and now it has fallen, and the benefits have fallen to foreigners.

The more orders, the bigger the loss.

"P >." for example, we know how much the exchange rate is hitting foreign trade. "

Gu Xinyi pointed to a glass in hand and said, "the bottle, for example, sells 100 yuan, and the price of the purchase is 90 yuan.

At the time of export, the RMB was up 3%, equivalent to the price of 97 yuan.

After paying 90 yuan to the factory, it earned 7 yuan and gross profit fell 30%.

Gu Xinyi further explained that "a rise in the renminbi will affect the profits of the 10 points."

the last trading day of April this year, the exchange rate of RMB against the US dollar was 6.26 yuan, which is the lowest in a year and a half.

In fact, since the beginning of this year, the RMB has started to decline continuously. Insiders believe that the rapid devaluation of the renminbi may be pave the way for "two-way volatility". Chinese foreign trade enterprises are facing a "two way wave" test of the exchange rate. P

Guan Tao, the official of the balance of Payments Division of the State Administration of foreign exchange of China, recently wrote that the rise or fall of the RMB exchange rate is a normal phenomenon and should not be overinterpreted in its short-term volatility.

And said: "we can not isolate the fluctuation of the RMB exchange rate since the Central Bank of China [micro-blog] expanded the exchange rate floating zone in March. In order to take into account the central bank's further exchange rate reform, the two-way fluctuation of the RMB exchange rate will become a new normal."

Less than 4 months, the "P" RMB has been sharply derogated from 3.47%, and two-way fluctuations are taking shape.

For China's foreign trade enterprises, the unilateral appreciation of RMB is more familiar with the two sides, which means greater risks.

More than P, the voice of many enterprises reflects that the recent fluctuations in the RMB exchange rate have had a negative impact on the signing of enterprises, which is unfavorable for the long-term stable development of enterprises.

In the long run, a clearer exchange rate trend may be more conducive to foreign trade.

in Yin Shenglin's view, for enterprises, the key to the profitability of enterprises is the stability of exchange rate regardless of the exchange rate.

"RMB can rise to 5 even if it doesn't matter.

2009 is the case. When I rise to 6 points and do not move for a year, I earn money.

Below P, we can see that exchange rate fluctuations are the most troublesome thing for foreign trade enterprises.

The rise of the renminbi from "rising to the end" to the current "drop and fall" has also made foreign trade practitioners unprepared.

It can be said that any foreign exchange enterprise is worried.

Practitioners say that although foreign trade enterprises welcome devaluation, the most desirable and most important thing is the stability of exchange rate.

Zhou Xianping, associate professor of Finance School of Zhongnan University of Economics and Law, said: "for foreign trade enterprises, the expansion of exchange rate fluctuation also indicates that the risk of enterprises is increasing. This requires enterprises to pay more attention to the awareness and level of foreign exchange risk management". P

unclear foreground > /strong > /p >

In the face of the general plight of textile and garment foreign trade enterprises, P is not optimistic.

"Within five years, policies will not be changed, and all factories must be turned off."

Gu Xinyi asserted.

nowadays, China's textile and clothing export is facing one after another problem.

The cost of human resources is no longer cheap. Although the exchange rate is downward trend now, most economists predict that the yuan will eventually rise.

in fact, the plight of textile foreign trade is only a microcosm of the overall situation of China's foreign trade.

Foreign trade is very important to China.

The latest data show that foreign direct or indirect employment has reached 180 million people, that is to say, 1 of the average 4 Chinese people are engaged in foreign trade related work.

At the beginning of the year 2014, China became the world's largest trade in goods, and 4 trillion and 160 billion of its total imports and exports accounted for about 1/10 of Global trade in 2013. P

Less than P, but behind the massive volume is the growing challenge faced by China's own foreign trade.

according to the report of China research network, garment orders pfer to Southeast Asia, external demand is not strong, and RMB continues to depreciate, which are the key factors leading to the depression of foreign trade.

"import and export data shown by Customs Statistics in the first 3 months are not ideal, and may not even be satisfactory in April."

Shen Danyang, spokesman of the Ministry of Commerce, made a reverie in his speech at a regular news conference.

Insiders pointed out that this shows that the foreign trade situation is still not good in April, according to the foreign trade data mastered by the Ministry of Commerce.

> a href= "http://www.91se91.com/news/index_c.asp" > foreign trade < /a > situation is not optimistic, the relevant departments are also preparing to formulate corresponding countermeasures.

Li Keqiang, premier of the State Council, chaired the executive session of the State Council in April 30th, one of which was to deploy relevant work supporting stable growth of foreign trade and optimizing the structure.

the conference held that the development of foreign trade is of vital importance not only for steady growth and for employment protection, but also for promoting the deep integration of China's economy and the world economy.

At present, the situation of China's foreign trade is grim and complicated, and it is necessary to make arduous efforts to achieve the expected target in the whole year.

We must take into account the current and long-term, take decisive and effective measures to promote steady growth in imports and exports.

in which, "expediting export" a href= "http://www.91se91.com/news/index_c.asp" > tax rebate progress < /a > makes foreign trade practitioners quite anticipate.

The meeting said that in the future, it will ensure timely and full tax rebates, and expand the scope of export tax rebates for financial leasing in a timely manner.

Take comprehensive measures to support the "going out" of Chinese equipment.

in Gu Xinyi's view, the competitiveness of Chinese enterprises is still great.

"Actually foreigners are willing to do it in China because no matter Bangladesh or Vietnam, their level of development is still in the early stage of China's reform and opening up, and they do not speak much of credibility."

Gu Xinyi said, "but the Chinese people are very reputable, and we have accumulated a good reputation in the past 30 years of reform and opening up."

< a href= > http://www.91se91.com/news/index_c.asp > Gu Xin Yi < /a > believes that small and medium-sized enterprises should be the object of state support.

"the government still has to support small and medium-sized enterprises, and 80% of the state's employment depends on small and medium-sized enterprises."

Gu Xinyi felt that protecting employment is the most important.