Listen To The "Belt And Road" Conference To Outline The Territory Of Foreign Investment Of Textile Enterprises

Textile industry is the pillar industry of China's national economic and social development, and it is also an advantageous industry of international cooperation and integrated development. Under the promotion of "going out" and "one belt and one road" initiative and other policies, the textile industry has continuously deepened the transformation and upgrading, accelerated the layout of international development, and achieved differentiated development. Taking Antai group, jialinjie and other textile enterprises as examples, through investment in Vietnam, Ethiopia, Pakistan and other countries along the belt and road, they not only enhance their competitive advantages, but also further expand the overseas investment territory of Chinese textile enterprises.

On October 15, on the spot of 2021 China textile industry "one belt and one road" conference, Qian Anhua, chairman and general manager of Antai (Deqing) Fashion Co., Ltd., and Chen Yan, general manager of Pakistan jialinjie Fashion Co., Ltd., shared with you valuable experience of foreign trade and investment of textile enterprises, which aroused warm repercussions from industry colleagues.

Aetna group:

Grasp the turning point of "double cycle" manufacturing industry transformation

In the post epidemic era, China is making every effort to build a new development pattern of "double cycle". Aetna group, which is deeply engaged in overseas markets, is keenly aware that this is an accurate grasp of the international situation and an important opportunity for the transformation and upgrading of domestic manufacturing industry.

Qian Anhua, chairman and general manager of Antai (Deqing) Fashion Co., Ltd., introduced that as an earlier "going out" textile enterprise, Antai has carried out layout in Vietnam (2005) and Ethiopia (2017), which are important countries along the belt and road construction, with stable operation and scale.

Qian Anhua analyzed that the reason why they chose to invest in Vietnam and Ethiopia successively is that they have many similarities. For example, both countries can undertake the capacity transfer of China's labor-intensive manufacturing industry. With low labor cost and rich resources, the government can provide strong preferential policies. At present, Vietnam's market environment is relatively mature, and its industry is also very rich. In the future, Ethiopia's market prospect is also very considerable.

In the long run, it has great advantages to invest and build factories along the belt and road. Nowadays, Vietnam's manufacturing industry is becoming more and more mature and has become an important international manufacturing center. It is expected that Ethiopia, like Vietnam, will become an important international manufacturing center in the future, which is an important reason for Antai group to invest in Ethiopia.

It is worth noting that under the situation that the international market is seriously affected by the epidemic, Antai's overseas factories have not been in a dilemma. Instead, they have built a safe and stable production and living order by introducing domestic epidemic prevention measures and management measures into overseas production bases.

This is closely related to Aetna's long-term accumulation in foreign investment. Antai attaches great importance to the training of local management cadres and technical backbone, and has established a stable staff team. In the period of epidemic and turmoil, Antai has well stabilized production and operation and resisted risks. "It seems that the investment in training and building a talent team is relatively large, but it is a necessary route, which is conducive to the sustainable development of enterprises in overseas markets."

At the same time, we can not ignore that there are also many difficulties to be solved in overseas investment. For example, financing is difficult, financing is expensive, and transportation costs are high. Aetna believes that to solve the financing problem, on the one hand, it depends on external forces, such as the establishment of financial institutions dedicated to overseas investment enterprises, or the discount of a certain proportion of overseas fixed assets as collateral; On the other hand, it depends on the enterprise itself, such as giving full play to the advantages of flexible operation mode, establishing strict financial system and standardized business process. To solve the problem of incomplete industrial chain, we should build our own factories, build local industries, supplement the chain, or solve the problem.

Qian Anhua said that the proposal of a series of important structures such as the "belt and road" initiative and "double cycle" has provided an updated development direction for the development of Antai group. It is precisely by stepping on the pace of globalization, seizing the opportunity and daring to go out, Antai has established in-depth cooperative relations with many world-famous clothing brands. Its products have been sold well in Europe, America, Southeast Asia and other regions for many years, and has developed into a modern large-scale multinational enterprise group.

"The domestic market will also have a bright future." Qian Anhua said that previously Aetna's business was in the upstream of the industrial chain, and its product added value, profit margin and bargaining power were also low. After the domestic epidemic situation has been effectively controlled, Antai has readjusted its development direction and formulated a new development strategy: while stabilizing its original business, Antai has developed products for the domestic market, such as home wear, sports underwear, casual wear, etc., as well as Hanfu clothing with Chinese cultural attributes, supplemented by online live broadcast platform to expand terminal channels.

Jialingjie:

Follow the belt and road initiative to realize sustainable investment

Since the "belt and road" initiative was put forward, a number of enterprises with international competitive advantages have taken the initiative to carry out international strategic layout. From raw materials to final products, from dialogue to in-depth cooperation, the industry has gone out in more than 100 countries and regions, promoting the deep cooperation and common development of the global textile industry chain.

According to Chen Yan, general manager of Pakistan jialinjie Fashion Co., Ltd., jialinjie has focused on investment in Pakistan in recent years. Jialingjie clothing began to operate in Lahore, Pakistan in January 2018. After three years of efforts, it has expanded from the initial 1000 people to 3000 people.

It is reported that jialinjie, founded in 2001, is an export-oriented enterprise focusing on R & D and manufacturing functional knitted fabrics and ready-made garments. Its main business is to serve medium and high-end sports outdoor brands and large fashion brands. Chen Yan said that the construction of textile enterprises in Pakistan is the industrial layout of jialinjie based on its own industrial layout to better meet the needs of customers and enhance the competitiveness of products.

It is worth mentioning that during the epidemic period, jialingjie Pakistan company was not greatly impacted. Instead, it maintained stable and orderly production through strict implementation of epidemic prevention and control process specification, independent production of mask protective clothing products, and timely full staff vaccination with the support of the embassy and the Pakistani government. At the same time, jialingjie actively participated in the social activities of epidemic prevention, and successively donated protective articles to the prime minister's office, the resident army, local hospitals and the surrounding people.

The belt and road conference of China's textile industry has strengthened the determination of many Chinese textile enterprises to carry out overseas layout. Jialinjie's overseas expansion investment plan also stems from the textile "one belt and one road" conference. At the beginning of 2019, Huang Weiguo, chairman of Yuanyi company, which invested in jialinjie, visited Pakistani Prime Minister Imran Khan at the "belt and road" summit in 2019. He was praised by the Prime Minister for investing heavily in Pakistan's textile industry and the cabinet's commitment to provide full support. Therefore, he decided to launch a large-scale investment plan for Pakistan.

Chen Yan said that at present, the company has purchased 450 mu of land in Lahore and plans to invest in the construction of a small export-oriented textile industrial cluster. This park is not only for the implementation of the project, but also to create a benchmark project of industrial park with Chinese standards, to show the qualified industrial park model to Pakistan's counterparts, and to show the construction advantages of Pakistan to Chinese enterprises interested in overseas layout.

Chen Yan further introduced preferential policies for investment in Pakistan. Textile is an important pillar industry in Pakistan. Textile export-oriented enterprises have special electricity tariff and natural gas reduction and exemption treatment. The preferential income tax policy for export-oriented enterprises is 1% of the export value. Enterprises settled in special economic zones can be exempted from enterprise income tax for 10 years, and imported equipment (new or second-hand equipment) will be exempted from import tariff at one time. In addition, Pakistan's textile products exported to EU and China's free trade agreement (FTA) are free from tariff treatment. Fabrics are exported to Africa or Jordan, and garments can enter North America without tariff, and the transportation distance is much smaller than that from East Asia.

The most difficult thing is that Pakistan attaches great importance to the investment and development of Chinese manufacturing enterprises, Chen Yan said. Driven by the belt and road initiative, jialingjie has established a firm foothold in Pakistan. In the future, it will take social responsibility as its own responsibility, practice the concept of sustainable development, and constantly expand the scale of production and operation.

The overseas layout of textile enterprises not only enjoys policy advantages, but also faces financing difficulties and high costs. The stable and increasingly powerful motherland is the solid backing for Chinese textile enterprises to make overseas investment.

At present, China has opened a new development pattern of domestic and international double circulation, with the rise of digital economy and the maturity of new marketing models such as online live broadcast, which bring new development opportunities for textile enterprises with manufacturing industry as the main body. How to carry out product layout, resource allocation and all-round cooperation will become a new subject to be solved in the future.