Higher Cost Of Raw Materials, Textile Production Capacity Has Become A Trend

With the continuous increase of domestic labor costs and the appreciation of RMB, the quota cost of imported cotton has led to higher cost of raw materials for domestic textile enterprises. The cost advantage of China's textile and garment industry has been gradually lost in exports. Major textile and garment importing countries such as the United States and Japan have greatly reduced orders in China. In addition, enterprises also take into account factors such as reducing trade frictions and evading tariffs. Finally, Vietnam, which has begun to shift factories to labor cost advantages in China, has finally appeared. Myanmar The phenomenon of Southeast Asian countries such as Kampuchea and Bangladesh has gradually become a trend.

image Lu Tai A Following the exploratory investment in Kampuchea and Burma, the company will build third overseas production bases in Vietnam. Invest in the construction of 60 thousand spindles spinning and annual production of 30 million Beige woven fabric production line, the company is the world's largest yarn dyed fabric base.

But the industry also said that despite investment in Southeast Asia and other regions Textile and garment industry The advantages are beginning to appear, but also must be highly cautious. Local political instability, incomplete industrial chain, limited capacity to undertake large-scale textile equipment, low productivity and cultural differences may lead to investment risks, resulting in reduced investment efficiency and even investment failure.

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At present, with the rapid increase of labor costs in China, manufacturing enterprises, especially labor-intensive enterprises such as textiles and electronics, have significantly increased their production costs. However, due to overcapacity in domestic industries and the rise of manufacturing industries in Southeast Asia, the price of finished products in China is difficult to upgrade. In the case of constantly squeezing the profit margins of enterprises, the task of transformation and upgrading is extremely urgent. Through large-scale technological transformation and equipment renewal, we can improve production efficiency and reduce labor cost. In recent years, the cost of financing has been high. It has become an increasingly heavy burden on manufacturing enterprises, which has seriously restricted the development of enterprises.

In view of the problems faced by enterprises, it is suggested that the following measures should be taken to improve the financing cost of enterprises and effectively alleviate the problem of high financing cost.

First, the government should strengthen supervision over the banking industry, standardize and standardize the charging standards of banking related enterprises, and strengthen the supervision of various financial innovations of banks. We should supervise the banking industry to take measures to reduce the financing cost and financing cost of enterprises, limit the upward floating range of the real interest rates of bank loans, reduce the fees for intermediate fees and cancel the guarantee, and so on.

The two is to further reduce the interest rate difference between bank deposits and loans. To relax the access conditions, allow private capital to initiate small commercial banks with various shareholding systems, promote private finance to become an integral part of the multi-level financing system, reduce the price of funds through competition, expand the investment channels of private hot money, and guide hot money to return to the real economy.

Three, we should strengthen the function of banks to support enterprises and service enterprises, and maximize the benefits to enterprises and avoid excessive profits with enterprises. The banking industry itself needs to further reduce operating costs, learn the operation mode of foreign banks, and create new means of profit.