China'S Textile And Apparel Export Situation Is Not Optimistic, Facing Four Major Challenges.

Recently, Vietnam has completed negotiations with all TPP related countries. After the signing of the agreement, textiles and clothing enjoy zero tariff, far lower than the current 17% to 32% tax rate, and the export market share is expected to increase 1 times.

From 2010 to 2014, China's textile and clothing exports grew by an average of 12.6%, while Vietnam's average growth rate reached 18.3% during the same period.

Clothing is the two largest traditional labor intensive export product in China, which accounts for a large proportion of China's export products.

However, the export situation of textiles and clothing is not optimistic this year. From January to September, the total export value was 211 billion 330 million US dollars, a decrease of US $10 billion 420 million compared with the same period last year, of which the value of textile exports was US $81 billion 860 million, down 1.5% from the same period last year.

The value of goods was 129 billion 470 million US dollars, down 6.7% compared to the same period last year.

This is the first cumulative negative growth in the past 5 years.

The labor-intensive industries represented by textiles and clothing are facing four major challenges:

Cost advantage diminished and corporate profits shrank.

In the past, China's labor-intensive products have great price advantage in the international market due to the advantages of abundant cheap labor.

However, since 2010, the total growth rate of migrant workers in China has continued to decline, and employment is hard.

At the same time, the wages of migrant workers continued to rise. From 2010 to 2014, the wage growth rate of migrant workers was 19.3%, 21.2%, 11.8%, 13.9% and 9.8% respectively.

According to the survey data, China's labor cost is 2.5 to 5 times that of Vietnam and Bangladesh.

Labor costs rise year by year, making the profit margins of enterprises constantly squeezed, and some enterprises export gross margins even below 1%.

The overseas consumer market is weak and external demand is declining.

At present, the global economy is still in the deep adjustment period after the financial crisis. The economy is relatively weak, especially the European Union and Japan, which account for nearly 30% of China's textile and garment industry's exports.

In the first half of 2015, China's exports of textiles and clothing to the EU and Japan fell by 8.6% and 12.5% respectively, down 2.5% of the industry's export growth.

Emerging economies are suddenly rising and international competition is intensifying.

Due to the weakening of the price advantage of China's labor-intensive industries, some overseas orders are pferred to emerging economies such as Vietnam, India, Indonesia and Kampuchea with lower labor costs.

From 2010 to 2014, China's textile and clothing exports grew by an average of 12.6%, while Vietnam's average growth rate reached 18.3% over the same period. Vietnam has become the second largest textile source in the United States.

At the same time, Vietnam and other countries attach great importance to the issue of striving for international trade policy.

In May 2015, Vietnam signed a free trade agreement with South Korea, and South Korea reduced tariffs on 95.43% items of goods, including textiles. Recently, Vietnam completed negotiations with all TPP related countries. After the signing of the agreement, textiles and clothing enjoy zero tariffs, far below the current rate of 17% to 32%, and the export market share is expected to increase by 1 times.

The original industrial model is difficult to follow, and the pformation and upgrading are imminent.

China's labor-intensive industries have long been followed by low price expansion and volume based growth models, with low and medium end products and processing as the main products, with low technical content and low added value and few independent brands.

With the increase of labor costs and other factors, China's labor-intensive industries are losing their original competitiveness in some low-end markets, forcing them to upgrade to technological content, productivity and quality. Enterprises will face huge capital investment and operational risks, and the survival of the fittest will be aggravated.

In view of the above situation, Shandong Weihai inspection and Quarantine Bureau recommends that: export enterprises should strengthen product, technology and service innovation, create competitiveness through brand building and innovation, change the business strategy of low price competition and rely on market driven, promote the industry to high-end, intelligent pformation and upgrading; make full use of "

"And other national strategic opportunities, qualified enterprises can carry out efficient and rational allocation of pnational resources, actively and steadily" go out "and enhance their position in the global industrial value chain.

At the same time, relevant departments should also give enterprises better policies and financial support, guide enterprises to analyze the international market situation, seize the international market opportunities, and help enterprises improve export efficiency.