Shunde Textile Enterprise Organization Highlights Tight Encirclement And Chooses To Save Oneself
Recently, the state officially announced that the export tax rebate for textile and clothing should be raised from 13% to 14%. Before the formal introduction of the policy, rumors of textile and garment export tax rebates increased. "The pressure of the enterprises is really great, which is a good thing". This is the first reaction of Feng Jiefang, Secretary General of Shunde textile chamber of Commerce, when he heard the hearsay news. At the executive meeting held by the State Council last week, the export rebate rate of labour intensive products such as garments and textiles has been raised. "We have been waiting for such a policy, and we hope it will play a positive role in encouraging the export of enterprises." Mr. Cheng, a Shunde textile enterprise owner engaged in textile embroidery, told reporters that more than 95% of the company's products were exported to Europe and the United States.
This year, the company obviously felt "chill". "Compared with last year, although our sales have not declined, profits have shrunk. The increase in quotations is far less than the increase in costs. Mr. Zheng said that in the face of multiple pressures, the export tax rebate would have little effect on the enterprises, but the enterprises valued the positive signals released by the national policies, which would enhance the confidence of the whole industry.
Regarding this, Feng Jiefang, Secretary General of Shunde textile chamber of Commerce, believes that the export rebate rate will be increased by 1 percentage points, which will have some effect on easing the funds shortage and reducing the pressure of losses for textile and garment export enterprises, especially small and medium-sized enterprises in the short term. The chamber of Commerce will cooperate with the Shunde economic and trade department to count relevant value-added profits as soon as possible.
Shunde's textile industry is struggling.
Textile and clothing are one of the eight pillar industries in Shunde. There are many textile and garment enterprises in the streets of Junan, Xing Tan, Lun Jiao and Ronggui. Can 1% of the adjustment let textile and garment enterprises out of the predicament?
Feng Jiefang, Secretary General of Shunde textile chamber of Commerce, told reporters that the recent changes in the economic situation at home and abroad have had an important impact on the development of the textile and garment industry in Shunde. The cost of labor and raw materials increased by 20% and 30% respectively, while the cost of electric energy and land resources is also rising, coupled with the impact of the implementation of the labor law, plus the rapid rate of depreciation of the US dollar. "It is estimated that the tax rebate will be raised to 17%, which will alleviate the pressure of business pressure," Feng Jiefang said. In the same period, in order to fully understand the difficulties of enterprises and help enterprises to get out of difficulties as soon as possible, recently, the Shunde Finance Bureau and Shunde economic and Trade Bureau made a sample survey of the textile and garment enterprises in the region.
Many problems have been found in the survey. In addition to the impact of the international economic recession, the state's macroeconomic regulation and control efforts have been further strengthened in China. The improvement of environmental requirements and the implementation of the new labor contract law have increased the burden of enterprises to varying degrees. The implementation of tight monetary policy has made the problem of corporate financing more and more serious. In addition, the shortage of land resources in Shunde and the tight supply of electricity have further restricted the development of the industry.
Organizing "self rescue" to seek breakthroughs
While waiting for national policies to increase support, many Shunde textile and garment enterprises owners also seek to improve their competitiveness by improving their management level and production technology level, expanding domestic sales channels and cultivating their own brands. "At present, many enterprises in Shunde have introduced more advanced equipment and changed management mode to increase productivity. In addition, it is accelerating the development of domestic sales channels, one is to make OEM for domestic enterprises, and the two is to cultivate independent brands. Feng Jiefang said.
Feng Jiefang said that many textile and garment enterprises in Shunde are also beginning to attack domestic sales. For example, the Shunde textile chamber of Commerce recently invited member enterprises to participate in international exhibitions. However, it was rejected by individual enterprises. These enterprises were planning to cultivate their own brands and seize the domestic market. In addition, in the sample survey conducted by the joint finance and Economic Bureau of the Shunde Finance Bureau, the situation faced by the textile and garment industry in our region was thoroughly analyzed, and the breakout strategy for the textile and garment industry was put forward.
Among them, considering the expansion of the surrounding areas, the development of headquarters economy is a way to solve the difficulty of land use which is characterized by labor intensive and low value-added textile industry. In this regard, Feng Jiefang revealed that not long ago, a number of business representatives from the Shunde textile chamber of Commerce and the heads of Shunde economic and Trade Bureau inspected two industrial parks in Yangjiang and Lianjiang. Shunde enterprises can enjoy preferential land price discount if they invest in the area.
Shunde Finance Bureau also said that the government should strengthen the guidance to the textile and garment industry, promote industrial restructuring, and increase financial support. In the process of nurturing and supporting leading enterprises, we should give play to the role of SME guarantee funds and investment risk funds, and strive to solve the problem of financing difficulties.
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