Russia'S Tax Cut Policy To Attract Foreign Clothing Brands To Set Up Factories

Russia is actively inviting foreign clothing brands to build factories in Russia.

Viktor Yevtukhov, Vice Minister of industry and trade, said that the government's support plan will partly subsidize the cost of raw materials, technology upgrading and new investment projects.

It is understood that the new factory will also enjoy tax relief policies for a long time until 2025.

In addition, the Russian Ministry of industry and trade guarantees that invited firms will enjoy market share in the form of government procurement orders.

Yevtukhov, Vice Minister of industry and trade of Russia, said it is important to establish cooperative relations with large chain retailers and explore the source of raw materials.

External market, Russia's high-tech value-added products have broad prospects, such as industrial textiles and non-woven fabrics.

At present, the industry's market sales account for about 30% of the total industry sales.

In addition, in the past 5 years, Russia's non-woven production has increased 8 times, while the EU market, especially in Germany, has accounted for 50% of the growth of industrial textiles.

although

Slowing down, Russia's consumer goods manufacturing industry has continued to grow.

According to statistics from Russian Ministry of industry, in 2013,

Industrial output has increased by nearly 5%.

In addition, in the first 9 months of this year, the output value of Russian clothing industry increased by 7%, while the industrial growth rate of the same period was only 0.7%.

At the same time, with Russia's accession to the WTO and the abolition of tariffs, leather production decreased by 10.5% and leather products dropped by 20%.

To solve this problem, the Russian government released this August.

Export ban.

In addition, the Russian Ministry of industry and trade is studying a similar ban on export of raw skins.

Yevtukhov said the ban was mainly due to shortages of Russian raw skins and manufacturers' demand for raw hide.

At present, most synthetic fibers in Russia need to be imported, though domestic production has made great progress.

For example, Shakhty in Rostov region has large projects for producing blended fibers, but the production of new fashion fabrics is still lagging behind.

Yevtukhov said: "Russia is the main producer of oil and natural gas, so the possibility of developing chemical fibers and yarns is very high, including the development of production chains through high-end petrochemical industry."

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Thirty years Hedong, thirty years Hexi.

In recent years, garment enterprises have been trapped in the dilemma of high inventory and net profit decline.

A total of 36 members of the clothing and home textiles listed companies in Shenyin and Wanguo statistics have eliminated 3 home textile companies and 32 Chinese clothing companies that have been backpacking by Xin Yang Feng, a chemical fertilizer company.

In the first three quarters of this year, 19 of the 32 companies declined, accounting for 59%.

Another 5 companies net profit rose less than 20%, accounting for 15.6%, the remaining 8 companies net profit growth of 21%~212%, accounting for 25%.

Affected by poor performance, clothing listed companies have gained limited profits this year.

The industry has increased by 39% this year (up to November 27th), ranking forty-second in more than 100 Shen Wan II industries.

Judging from the performance of a single company, the net profit of Busen shares has dropped the most.

According to the financial report, Busen shares lost 39 million 600 thousand yuan in the first three quarters of this year, down 393% compared with the same period last year.

In addition, the net profit of Hinur and Meyer of the main men's wear also dropped by more than 100%.

For the sharp decline in performance, Busen shares brought a series of answers to investors in its third quarterly report: "net profit decreased by 393% over the same period last year, mainly due to a decrease in total profits and deferred income tax turnover."

Earnings report also showed: "total profit is 223% lower than the same period last year, mainly due to reduced operating profits."

Then, why does business profit decrease? "Operating profit decreased by 292% over the same period last year, mainly due to the decrease in sales during the current period."

Busen shares said.