Domestic Textile Industry Seeks New Way Out

Since last year, China has included Home textiles Enterprises, including textile enterprises, have been affected. raw material How to find a new way out of the double squeeze of price increase and production factor cost has become an urgent problem for domestic textile producers.

　　 "Leaving" neighbouring countries to reduce costs

"In the long run, raising wages is not the best solution. The rising cost of labor will sooner or later drag down the business. Now, we want to know how to "go out" to invest and build factories overseas, maybe this will become the future development direction of enterprises, and let us really get out of "labor shortage and labor cost". While showing reporters the purpose of participating in the forum, Meng Yao also thought about the future "leaving" plan.

He said: "Southeast Asian countries must be our first choice for going out. There are preferential tax policies and abundant labor resources, and more importantly, some textile enterprises have successfully invested and built factories there, providing us with good models and references."

In these successful "going out" Spin In the enterprise, Mingyuan is one of the few home textile enterprises. Wang Shuo, deputy general manager of Yantai Mingyuan Home Textiles Co., Ltd. told reporters: "because of the increasing cost of labor and other investments, the problem of recruitment is becoming more and more prominent. Ming Yuan home textile was formally invested in Kampuchea last year. Now it seems like a good choice."

It is reported that Ming Yuan home textile investment in Kampuchea is mainly based on the local multiple dividends. "Kampuchea welcomes enterprises to invest in business at the national policy level. The local government has offered more favorable terms to attract investment, such as 3 years of tax exemption before the completion of the plant. Moreover, the average monthly wage of local workers is generally between 130~150 dollars. Wang Shuo said that the textile industry is a labor-intensive industry with less investment in equipment, and the wages of workers are a great cost. Compared with China, Kampuchea has abundant labor resources and low price, which is about 1/3 domestically. It can effectively reduce the cost of enterprises and achieve greater benefits.

In addition to low labor costs, Kampuchea also enjoys the most favored nation treatment of GSP in Europe and the United States, with no quota restrictions on exports, and most products enjoy zero tariff treatment. For textile enterprises, it can avoid some trade barriers.

After six months of production, Mingyuan home textile began to make profits in Kampuchea textile mill. After a period of adjustment, local workers have become more and more proficient in sewing sheets, quilt covers and other products.

In this regard, the home textile manufacturers agree very much and say that the cost has now become a huge stone that weighs heavily on home textile enterprises. Labor cost is the most difficult and prominent industry problem, and even become the fuse to force enterprises to "run away".