Nanchang'S Textile Export Enterprises

Textile and garment industry is a traditional export advantage product in Jiangxi province. However, with the spread of the global financial crisis, the growth of export orders has declined.

In February 4th, the State Council passed the adjustment and revitalization plan of textile industry in principle. The export rebate rate of textiles and clothing was raised from 14% to 15%. The change of one percentage point was like a good rain for Jiangxi textile export enterprises, which not only kept orders for customers, but also increased profits.

(1%) increase the competitiveness of Nanchang textile enterprises. "1% of export tax rebates may not be important for other industries, but it is lifeline for textile and garment enterprises."

Han Hongtao, general manager of the Jiangxi cotton textile import and Export Corporation, is pleased with the policy of raising the export tax rebate in the country. "It can not only improve the profits of enterprises, but also keep export orders."

What does the export tax rebate increase by one percentage point to textile and garment export enterprises?

Han Hongtao gave the reporter an account. The amount of textile and clothing products exported by his company last year was about 30 million dollars, and the export tax rebate increased by 1%. The deduction of tax rate and other factors is equivalent to the increase of nearly 2 million yuan in profits for the company.

At present, most export textile and garment enterprises in Nanchang rely mainly on export tax rebates, and the profits of the company are only about 2%.

"The effect is still better, giving enterprises a breathing space."

This is the evaluation of the policy by Xiong Jiahong, chairman of Nanchang textile and garment export company Jiahong garment industrial company. The first half of this year is the most difficult period for export oriented enterprises. At this moment, the state can support enterprises by tax policy, and it can play 42 roles.

The company's exports amounted to $about 10000000 last year, compared with 1%, representing an increase of $100 thousand in profits.

Of course, the 1% proceeds can not be exclusive to export enterprises, but also need to be redistributed.

Han Hongtao was very upset. On the second day of the policy announcement, foreign customers came calling to reduce the price of products. "In fact, they asked for 1% profits."

Tian Fengguo, director of the office of Nanchang Huaxing knitting industrial company, told reporters that foreign customers will also adjust their product pricing at any time according to domestic policies. The company has already signed the order for the next few months, which will be able to enjoy the 1% share. The new order will be shared with the customers by lowering the quotation of products. "In fact, it will enhance the bargaining power of enterprises and avoid customers pferring the orders to Vietnam, Laos and other countries with lower cost."

Nanchang's export of textile enterprises continued to grow last year. "The biggest feature of textile and clothing exports is stability, and there will be no big fluctuations."

The Nanchang Municipal Foreign Economic and Trade Commission responsible person provided reporters with the export data of textile and garment industry last year: the export volume was 666 million US dollars, an increase of 15.03%, "the increase is more than the average of the total export volume of the city".

Correspondingly, in February 10th, the machine roared in the workshop of Nanchang Jiahong Garments Co., Ltd.

Chairman Xiong Jiahong told reporters: "our production plan has been scheduled for May this year."

The financial crisis has not had a very serious impact on him. This is mainly due to its ability to adjust to the market. The company's products are mainly targeted at the Middle East and Africa markets. "We can design and make clothes for the Middle East customers, and focus on developing their own brands. The 40% export products have their own brands", which has enabled Jia Hongji to get a steady order and gain more profits than the foundry.

Similarly, from the second half of last year to the present, none of the 1000 employees of Nanchang Huaxing knitting industrial company has been laid off because of insufficient orders. "At the beginning of January, eight started as usual, and now it is full load production."

Tian Fengguo, director of the office of the company, told reporters that although the export orders had declined, it was still within the control of the company. It was just that some orders were too late for them to do, and they needed to be subcontracted to others.

In this regard, the Nanchang Municipal Foreign Economic and Trade Commission responsible person believes that, from last year's Nanchang textile and garment export "report card", the impact is not serious, but still maintains a high growth rate.

This is mainly related to the structure of Nanchang's exports of textile and clothing products. The impact of the financial crisis is likely to be on the high-end products, while Nanchang is mainly exporting low-end textile and apparel products, so the impact will be relatively lighter. "The crisis is serious and consumers' clothes need to be worn."

Wang Xiaonan: editor in charge