Shunde, the textile industry to ensure that the profit depends mainly on Enhancing strength and physical health

Enterprise believes that policy support is only a “booster” to ensure that the profit depends mainly on Enhancing strength and physical health

Good policy by the confidence

August 1, 2008, the country of some textiles and apparel export tax rebate rate from 11% to 13%. November 1 last year, part of the textiles, clothing, toys, merchandise export tax rebate rate to 14%. December 1, 2008 raised some labor-intensive products, machinery and electronic products and other products affected by the larger 3770 merchandise export tax rebate rate. In less than four months, the Government for 3 times to raise the export tax rebate rate, the adjustment scope, involving products as much as in recent years are rare.

“Financial tsunami came, we improve the quality of life, and喝早茶time every day, playing, watching TV.” Shunde Jun’an from a textile bosses with some self-ridicule of this discourse seems to feel the current textile industry not a good time.

In that case, the government three times in a row to raise the export tax rebate rate, can save the enterprise? “This year, apart from the impact of the financial tsunami, the exchange rate appreciation, rising labor costs, such as a series of ‘combination of boxing’ play does not put us light ah, even if the export tax rebate from the current 14 percent to 15 percent, it is just good to make up for problem of rising labor costs. “Tak-fu, general manager of Arts & Crafts Co., Ltd. Cheng Naiqian think, adjust export tax rebate rate, so that many export enterprises buffer time, many of confidence, which is the most important function of policy adjustment. However, the long term, this policy difficult to adjust to fundamentally help enterprises from difficulties. “In 2008, we restructured enterprises have encountered the first loss in 11 years, we have to do a good job of 3 years of psychological loss and intended to prepare.” Zheng Naiqian call a spade a spade.

“The Government adjust foreign trade policy, improve the export tax rebate rate is inevitable.” Shunde has introduced the textile industry, in general, the export tax rebate rate increase to ease the export competition between enterprises, to increase the profitability of these enterprises in space.

“Enhancing Internal Strength” find a way out

A few days ago, Shunde more textile enterprises have realized that the textile industry of the country revitalization planning reflects the Government’s employment and export of industrial upgrading considerations. Many think, enterprise key to survival or “Enhancing Internal Strength” to speed up the adjustment of product structure and market structure, adapt to market changes necessary in order in the next competition in the firm footing.

It is reported that the proposed plan to revitalize the textile industry to establish country of structural adjustment, technological innovation and industrial upgrading, such as special funds to support enterprise development. This special fund arrangements from the country of independent innovation and industrial restructuring in the allocation of project funds. In addition, the revitalization plan include: expanding the credit scale, in particular small and medium-sized financial difficulties are resolved, it is recommended the use of discount loans; Supporting corporate mergers and reorganizations, and actively expand exports, to consolidate and develop the international market; strengthen their own brands and marketing channels to cultivate building and so on.

General Chamber of Textiles Limited Shunde FENG Jie-fang said that the Secretary-General, now that the Government improve the export tax rate is very timely, as well as many export enterprises played a “shot in the arm.” However, in the long run, the textile industry as a labor-intensive industries, upgrade, transition will be quite a long time coming within a trend. Therefore, the textile industry still faces many problems, especially in the human aspects of costs and prices of raw materials. Therefore, the main way to ensure that the profit lies in the expansion of their own rather than rely on government support means.

“We also want to deal with a positive approach, by reducing the scale, at the same time broaden sources of income, domestic sales channels to open up to find way out.” Zheng said Naiqian.

In addition, the Secretary-General Chamber of Textiles Limited Shunde FENG Jie Fang also said that prior to the textiles to wear the country a “labor-intensive” big blocks. In such a situation, the development of technical difficulty is not too high, not too much capital investment, economic efficiency is not high, but can be substantial resettlement of employment, social benefits, a great bearing on social stability and labor-intensive industries are an absolute must essential, such as the textile industry. “The country seems to be aware of this problem and, therefore, wants the state to support labor-intensive enterprises also need to take into consideration.” FENG Jie-fang.

Extended reading

China’s April 1, 1985 Products from export tax rebate policy. January 1994 to set up a new value-added tax, consumption tax system is based on the export of the goods back (free) tax system. July 1995 textile and garment export tax rebate rate from 13% to 10%. December 1996 tax refund rate continued to fall to 6%. For 1998 from the Asian financial crisis, increase export tax rebates to encourage the country to export textile and garment export tax rebate rate to 11%. In January 1999 raised to 13% increase again in July, to 15%. July 2001 cotton yarn, cotton cloth, cotton products export tax refund rate from 15% to 17%. January 2005 the State Council to adjust the central and local share of the export tax rebate. Country in September 2006 will be the textile export tax rebate rate from 13% to 11%. July 1, 2007 China’s large-scale re-adjust the export tax rebate policy. August 1, 2008, some textiles, apparel export tax rebate rate from 11% to 13%. November 1, 2008, raised to 14%