The most difficult period of China’s textile industry may appear in the second quarter

As China’s traditional industries and an important livelihood industries, the textile industry in the last year not experienced for many years when the market downturn. Revitalize the country’s textile industry adjust the introduction of planning, not only greatly enhanced the development of confidence in the textile industry will be accelerated so that a downturn in the textile industry at an early date out of the woods. Reporter survey found in Shandong, the textile industry is accelerating the process of survival of the fittest, a number of advantages of brand enterprises in the market become more competitive cards. However, because of the current international financial crisis was further deepened, China’s traditional export-oriented textile industry the most difficult period before the arrival of this difficult time is expected to appear in the second quarter of this year.


– China’s textile industry to speed up access to the structural adjustment period


The textile industry in Shandong are the traditional pillar industries, are a clear competitive advantage at this stage of industry, in creating jobs, increasing the income of the farmers, and export foreign currency, market and promote the prosperity and urbanization play an important role in such areas. At present, Shandong Province, has nearly 30 million spindles, and nearly 200 million workers in the migrant workers accounted for more than 70%. 2008, in Shandong Province over scale textile and garment industrial enterprises reached 4933, the economy ranked highest in the nation total 3. Among them, yarn and cloth output ranked first in the same industry; knitting wool industry ranked No. 2; dyeing, woolen ranked 3; garments, chemical fiber ranked 4.


Since the outbreak of the financial crisis last year, the entire textile industry is facing unprecedented difficulties. Adjust the revitalization of the textile industry planning will be textile and garment export tax rebate rate from 14% to 15%, but better on the fundamentals of operating a temporary financial difficulties and to give credit support to enterprises. Country in response to financial crisis, introduced last year to support the textile industrial development policy after six, the five policies introduced, especially to increase the export tax rebate rate of a point, can exert immediate effect. The textile industry in Shandong Province exported 15.5 billion U.S. dollars last year, the export tax rebate rate of increase, will directly increase the amount corporate profits. In addition, value-added tax transformation, a series of discount on technological renovation policy, industrial transformation and upgrading will also provide policy support.


Vosges Group Co., Ltd. is Asia’s largest textile companies, enterprise risk-resisting ability. 2008 vosges Group Sales revenue 5.78 billion yuan, up 15 percent; 22 percent export growth. But this year, due to factors such as the impact of Chinese New Year holiday, sales income of only 4 million yuan, nearly 10 percent lower year-on-year. Vosges Group staff said that the only export tax rebates, will be able to give enterprises to increase each year over 1000 million of profits.


In the international financial crisis under the influence of textile and apparel products in general decline in market demand, increase competition in textile and garment industry is facing severe challenges, weak competitiveness of enterprises will exit the market, the enterprises will have the strength to seize the opportunity, using national and provincial policy increase the structural adjustment and investment efforts to promote industrial development industrial restructuring, accelerate technological progress and independent innovation, cultivate independent brands, enhance core competitiveness. Shandong Province, recently being developed to revitalize the textile industry adjust plans, by 2011, large-scale textile and garment enterprises Sales revenue 9,000 billion, an average annual increase of 17% or more, nurturing a Sales revenue multi-billion-dollar enterprise, cultivating 20 In the annual sales income over 10 billion self-branded products, own brand products that the proportion of exports increased by 10 percentage points. Period, Shandong will focus on promoting the upgrading of the structure, focusing on cultivating in Qingdao City as a leader by the island’s garment with textile industry.


– U.S. and European markets likely to affect the textile industry to shrink the second quarter of Order


At present, with the central and local governments have promulgated a series of policies, China’s textile industry shown signs of improvement in the situation. According to Shandong Province, the industrial economic operation command for monitoring, since mid-February, and compete on monitoring enterprise scheduling production and marketing situation has gradually warmer trend, the majority of enterprise production and management better than the first half of February and the same period last year. In addition to textile industry production and sales situation is still grim, the textile and garment enterprises production and sales picked up, one of wool woven fabrics, garments, home textiles and ring the same period last year than the growth in both.


Shandong Province Textile Industry Association recently surveyed the province 30 textile enterprises, enterprises have 98% of the Order-on-hand hold, even though prices are not optimistic about the Order, but production is still growing. Group Import and Export Corporation, general manager of JIA Huai-jun told reporters that in 2008, the Group’s exports grew 15 percent, while domestic sales growth of 40%. With the shrinking European and American markets, the domestic market and gradually expand the proportion of enterprises. This year, the group will also put domestic products to further increase the proportion of 5%, so as to achieve about 45%. On the production side, enterprises not only to maintain its own production capacity, the Order will be 25% -30% commission processing to other companies.


For this year’s market prospects for the textile industry, textile industry in Shandong Province Xiang Chuan Association consider first half of this year will be the most difficult time in the textile industry is expected the second half of the global textile industry will be raised. And Group believes that the financial crisis impact on the economy has not yet ended, at last year’s show are only the tip of the iceberg. Financial crisis on the worst impact of the textile industry may appear in the second quarter of this year, Europe and the United States economic situation is not optimistic.


At present, a large number of small and medium-sized textile enterprises are still losing money. Shandong Binzhou Yaguang towel Ltd. Assistant General Manager said: “surrounding a number of small businesses after the Chinese New Year until now not yet started. These small businesses only a few thousand yuan output value of one year, workers, loans are not many, not on the community a big impact. and some people have thousands of medium-sized enterprises, the loan amount on billion, must have name recognition, will face less than loan money, not the plight of Order. these companies added value of the low strength Enhancing not, there is no competitiveness, the lack of hematopoietic function, it is difficult to support; enterprises developed by the loan, there is no ability to repay the loan gradually. ”


– Positioning the livelihood of the people should be more reflected in the policies on


Financial crisis has changed the current economic situation, the textile industry to follow-up industry support policies still look forward to. At present, the country introduced a series of expansion of investment, stimulating consumption, but the feelings of textile enterprises is not obvious. At present, the most direct policy or value-added tax and income tax adjustments. Increase the export tax rebate rate for a point, customers will soon be asked equally of profits, business really is not many. Moreover, the enterprise product is only sold out only to say that the tax rebate, and in fact, a lot of enterprises are now very few Order.


At present, the textile industry has been positioned as a traditional pillar industry of national economy and an important livelihood industries, is also obvious advantages in international competition industries. Therefore, the state’s textile industry should have preferential treatment, it has also become a part of the voice of the textile industry. Previously, the tax is not too much because of the textile industry, its importance has not been enough due attention to. In 2006, the country will also be included in the top ten textile industry overcapacity in these industries must be in the lending limit. Especially under the impact of financial crisis, corporate finance chain difficulties, some banks eager to loan collection, so a lot of enterprise funds increased risk-strand breaks. At present, the country implemented a proactive fiscal policy and accommodative monetary policy appropriately, but some of the industry reflects the current bank loan interest rates did not actually decreased significantly. Some banks do not implement a number of preferential policies to country. At present, some banks are still lending rate by 10% -20% of the float. Moreover, the more difficult aspects of the banking business minus give more credits. This is because banks are still approving loans to implement life-long accountability. Bank staff take into account the individual’s future risk, the credit crunch has obviously prudent loan psychological. In this regard, countries should consider writing off bad debts and bank loans to make assessment adjusted accordingly.