Vitality and appreciation of the RMB from the textile and garment industry first
Benefit from increased foreign imports, the new Association of Southeast Asian Nations to open up the African market and export tax rebate rate and other factors, Fujian since the beginning of the sharp rise in clothing exports, the haze out of the financial crisis, but the expectation of RMB appreciation gave a light clothing red light.
Substantial increase in garment orders
Recently, the seven wolves in Europe and the U.S. agency contract, which means that seven high-end series of wolf brand officially entered the European market. It is reported that seven wolves selected to enter the European market at this time, in addition to their own development needs, also with the overall pick up the garment export in Fujian.
"This year, orders increased significantly over the previous two years and more, line workers are working overtime rush, the company is also constantly recruit people to respond to increased orders for the situation." Fujian TRADE Group, Mr. Dong Mitang told reporters.
Fuma Group President Chen also said that this year a lot of orders to increase the basic state is overwhelmed, with the 2008 than 2009, certainly a lot better.
Fuzhou, the head of Garment Association, said yesterday that the city pick up clothing exports is an undeniable fact that the city's export garment enterprises large and small, nearly home, feedback from the majority of business situation, for the first 3 months of the order to clear more than last year, some even turning several times, many garment enterprises are the most unhappy is not a lack of orders, but the lack of skilled workers had to give up some orders. Main causes of increased foreign imports, the new Association of Southeast Asian Nations to open up African markets and the export tax rebate rate and so on.
According to Fuzhou Customs statistics, in January 2010, Fujian textile and garment exports (including textile yarn, fabrics and products, and apparel and clothing accessories) 9.6 billion U.S. dollars, up 10.7% over the same period last year, of which exports of apparel and clothing accessories in Fujian 7.4 100 million U.S. dollars, up 10.5%; textile exports 220 million U.S. dollars, up 11.4%, mainly exported to the EU, ASEAN and the United States.
Most worried about the appreciation of RMB
Clothing enterprises to increase exports to bring confidence, letting the exchange rate of many U.S. war feel great pressure garment.
6, a number of garment enterprises in Fuzhou official said that once the yuan appreciation, corporate pressure would be greater, if more than 3% rise, businesses will be lost overseas orders. For foreign orders have increased, but the garment export orders generally low profits, some companies have guaranteed to retain customers or even loss orders. On the other hand because the raw materials, labor and other costs increased substantially, greatly reduced the profits of enterprises, in this dual factors, some orders may not accept due to be profitable and ultimately lead to loss of customers.
According to industry analysis, RMB appreciation on the garment and textile industry most affected, because the better clothing companies export profits, profit margins of about 5%, most companies at 3%. If the yuan strengthened by 1%, 20% of the breakeven point the verge of garment enterprises; If 5% appreciation of the renminbi, it is estimated that more than half of the garment enterprises face closure.
Wu, president of Garment Association of Fuzhou yesterday, admits that once the RMB appreciation on the export garment industry is full of warming up in Fuzhou, is a big blow to companies even want to raise export prices to make up for losses difficult because of China's enterprises bargaining power. Association of garment enterprises now actively encourage industrial upgrading as soon as possible, early response, some clothing companies such as Fuzhou, appeared a powerful combination, complement, resource integration, new trends in capital operation.
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