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    Export Faces Many Difficulties, Foreign Orders Dare Not Answer.

    2008/6/21 0:00:00 10599

    Order

    On the afternoon of June 20, our reporter interviewed 6 shoe and garment enterprises in Zhejiang and other provinces, and 3 companies said they had stopped production.

    The manager of Lihua garment factory in Shenzhen told our reporter that the business situation of the foreign trade clothing industry is very poor.

    In their industrial area, only a few garment factories started, because they were not able to make a lot of complaints and never dare to pick up foreign orders.

    Wei Jia Ning, Vice Minister of the Department of macro economic research of the development research center of the State Council, told the reporter that the current difficulties in the existence of export enterprises will also affect social stability to some extent. The government should introduce some policies to relieve the pressure of export enterprises in the second half of the year.

    Liu Zhicai, a professor at Tianjin University of Finance Economics and a special researcher of the State Taxation Administration Research Institute, told reporters that in the first half of the year, the export enterprises' performance in the international market may be subject to structural adjustment of export tax rates.

    In the 1-5 months of this year, the trade surplus under general trade dropped sharply, with a surplus of only US $9 billion 180 million, which is only about 1/4 of the same period last year.

    The leaders of the national development and Reform Commission visited Wenzhou and other places in May. In the middle of June, the State Administration of Taxation went to Zhejiang, Jiangsu and other places to conduct on-the-spot research, which further confirmed the state's foreign trade policy or signs of loosening.

    Exports slumped. The manager of Lihua garment factory in Shenzhen told reporters that medium-sized enterprises like them are still in operation, but they can only be regarded as "life saving" stage, and do not consider profits for the time being.

    Last year, he said, the turnover of enterprises was about 10 million yuan, and now the turnover is less than 5 million yuan.

    The data released by the Customs show that the number of garment exports in China has been negative for the first time this year.

    In 1-4 months, the total export volume of clothing was 8 billion 977 million, down 1.46% from the same period last year.

    In the case of Wenzhou alone, the deficit increased by 22.1 percentage points to 314 million yuan, and the deficit reached 10.5%.

    The manager reluctantly said that faced with such losses, many enterprises were waiting for work to stop, hoping that the relevant preferential policies would be introduced, but he was considering relocation.

    He said that a lot of businesses like him would have shifted to lower labor force if they had not been able to observe the environment for a period of time.

    Order phobia "now even if there is a contract, we dare not answer it."

    Wenzhou City Tong Tai shoe factory Liu boss said so.

    He said that the profits of small and medium-sized export enterprises like them are around 3%-5%, but the appreciation of the renminbi is constantly increasing and production costs are increasing. These two items offset all the profits of the enterprises.

    In this regard, Liu boss said that in order to save production costs, shoe factories are canceling cooperation with trading companies and directly dealing with foreign buyers.

    This increases the paction procedures of both sides and reduces the efficiency, but it can expand the profit margins to a certain extent.

    He predicts that raw materials will increase by about 17% in the second half of the year, which will not be able to offset the rising cost of raw materials.

    Dongguan leather and Footwear Association also told our reporter that because local exports of leather shoes products are mainly low-end, the competitiveness is relatively weak, the overall situation is not optimistic, many enterprises are afraid to make long-term or large contracts, thus affecting the export volume of enterprises.

    In this regard, Liu Zhicai said, this shows that the export enterprises are in a very awkward position, the domestic and international environment double impact, at the same time, the domestic and international environment changes too fast, many enterprises are passively in a wait-and-see attitude.

    He said that in the face of such a dare not take orders, enterprises can use the bonded area and bonded logistics to offset exchange rate fluctuations.

    From May to the present, the national development and Reform Commission, the economic and Trade Commission and the State Administration of taxation have all gone to Wenzhou to conduct research. The staff member of the Wenzhou economic and Trade Commission told reporters that the specific content and data of the survey were not disclosed to reporters.

    A staff member of the Wenzhou chamber of Commerce said that in the face of the massive losses and failures of enterprises, frequent investigations by various departments showed that the government fully recognized the status quo of export enterprises and attached importance to them.

    "At the beginning of June, the proposal to raise the export tax rebate for textile and garment industry was submitted to the State Council and is waiting for approval."

    Experts from the international trade and investment Specialized Committee of the world economic association of China told reporters that the news showed that the government might take some measures to support export enterprises in the second half of the year.

    At the same time, the increase of financial revenue also provides an opportunity for reducing the pressure of enterprises.

    Yang Zhiyong, deputy director of the Financial Research Office of the Chinese Academy of Social Sciences, once said that China's fiscal revenue grew rapidly in May this year, an increase of 52.6%. Because of the severe situation of export this year, China can reduce corporate pressure from fiscal policy.

    In this regard, Wei Ning told our reporter that although the export enterprises are facing difficulties, they should not only listen to the voice of the exporters on the one hand, but also analyze the pros and cons of RMB appreciation and export tax rebate from a macro perspective.

    The government is likely to take some measures in the second half of the year to ease the pressure of export enterprises and make the society more balanced.

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