Textile And Clothing Export: What Is The Turning Point? (Two)

The cost of production factor, especially the increase of labor cost, has also weakened the competitiveness of textile export enterprises in the international market.

It is understood that the cost of labor in Guangdong and Zhejiang in recent two years is growing at an annual rate of about 30%.

According to the recent survey of the status quo of China's textile and garment industry by the China Textile Import and export chamber, the cost of the enterprise will also increase by 10%-20% after the implementation of the new labor contract law.

"At present, the minimum wage standard for ordinary workers in Guangdong textile and garment enterprises is 840 yuan, while the Pearl River Delta region has reached 1600 yuan."

Cao Xinyu said that another structural shortage of labor supply also brought pressure on enterprises.

Affected by the sharp rise in international oil prices, ocean shipping costs account for an increasing proportion of textile and clothing export costs, and further backlog the profit margins of enterprises.

According to the insiders, the total cost of textile and garment exports will increase by more than 20% this year.

"Developing countries are becoming the strongest opponents of China's low value-added products," Cao Xinyu said. "Foreign orders have begun to pfer to Vietnam, Indonesia, Bangladesh, Kampuchea and other countries. Bangladesh ranked second in last year's textile and clothing import market in the United States."

According to a survey conducted by the Zibo foreign trade and Economic Cooperation Bureau of more than 3000 textile and garment enterprises in Shandong, 30% of the orders have been pferred to the above countries.

The turning point?

"It can be seen very clearly that the turning point of China's textile and clothing exports has arrived," Cao Xinyu said.

In the 2003-2006 years, the growth rate of China's textile and garment exports has been maintained at a high rate of over 20%, and the export volume has been rising. The average growth rate of textile exports over the same period is only around 6%.

In the second half of 2007, the growth rate of China's textile and clothing exports slowed down significantly, and the annual export growth dropped to 20% below 18.9% for the first time in 5 years.

Nevertheless, in 2007, there was still water in exports and less than 18.9% in practice.

Some enterprises have falsely declared exports in order to cheat export quotas, which began in 2006.

But how big the water is, it's hard to find out.

As for the judgment of inflection point, sun Huaibin did not agree with this statement. "Snow disaster and logistics in February will also affect export, whether it is inflection point or not."

But in fact, sun Huaibin is not optimistic about the export situation this year. He said that if the internal and external environment does not have a good turnaround and continues to deteriorate, this year's textile and garment exports will continue to decline. For export oriented enterprises, it will be a great challenge, and enterprises must find a way out.

Cao Xinyu pointed out directly that since the integration of textile export quotas in 2005, the release stage of export energy is coming to an end. The export of textile and clothing will enter a stable development period. "The two digit growth trend will hardly be reproduced."

He believes that judging from the current situation, starting from this year, China's textile and clothing export growth is likely to remain between 8%-10%, slightly higher than the international average.

Pan Pingli, manager of International Business Department of Shandong Lu Tai textile Limited by Share Ltd, said that due to the expansion of the company's scale last year and the export of high-end products with high added value, the export volume in 1-2 months of this year has not decreased, reaching $about 87000000 by the end of March, and the company initially estimated that the planned export in 2008 would be 11% - 12% higher than that of last year.

But Pan Pingli also said that although the total volume of exports increased, profit margins were decreasing.

Pan Pingli said it was not easy to answer to what extent it would be low, but he believed that "this year is a rather difficult year".