Profit squeezed, textile enterprises support recruitment to meet the reform of foreign exchange

in the face of the rising cost caused by RMB appreciation, many textile and garment export enterprises adopt the above “tricks” to deal with the problem of locking in the exchange rate, raising prices and transferring exports to domestic sales. Recently, the appreciation of RMB has accelerated. Last Friday, as the US dollar fell sharply against major currencies, the central parity rate of RMB against the US dollar announced by China foreign exchange trading center was 6.772, up 138 basis points from the previous trading day, breaking through the 6.78 integer level, reaching a new high since the exchange rate reform in 2005

this is undoubtedly worse for the textile and garment industry, which has been overwhelmed by the cost of raw materials and labor. Zhou Xiaonan, deputy general manager of Huamei thread 1ndustry Co., Ltd., said in an interview with the reporter of the first Financial Daily yesterday that if it is only the unilateral pressure of RMB appreciation, textile enterprises can still bear it, but with the rising cost of raw materials and labor, enterprises can no longer afford it< According to customs statistics, the total export volume of textile and clothing in May this year was 16.43 billion US dollars, up 33.5% year on year. Among them, textile exports increased by 42.36% year-on-year, and clothing exports increased by 27.69% year-on-year. The growth rate was significantly faster than that of the previous four months. From January to May this year, the cumulative growth rate of textile and clothing exports was 19.3%, and the growth rates of textile and clothing exports were 29.7% and 13.1% respectively Zhou Xiaonan told reporters that in addition to the increase of orders from overseas customers, the acceleration of export growth in recent years has something to do with the export enterprises’ expectation of RMB appreciation and their efforts to speed up shipment. Due to the accelerated development of garment manufacturing in Southeast Asia and other regions, and the increase in the purchase of textile raw materials from China, the textile export situation is OK, but the price increase space is very limited. 1n recent years, due to the increase of labor costs by 10% – 15% and the rapid rise of raw material prices, Huamei thread industry has adjusted the product prices twice. At present, compared with the same period last year, it has increased by about 15%, 1t is almost difficult to raise the price again. The pressure of RMB appreciation can only be solved by the enterprise itself. The enterprise has recently locked the exchange rate within this year at 6.7 with the help of bank financial instruments. As long as the RMB appreciation is controlled within this range, the enterprise will be less affected< As early as April this year, Guangdong Textile 1mport and Export Co., Ltd. signed a hedging contract with the bank to lock the RMB exchange rate at 6.72 in the next year. Zhong Haosen, assistant general manager of the company, told reporters yesterday that the exchange rate locked in each month is different. The bank is very smart. 1t was locked at 6.8 in June this year, 6.79 in July, and 6.72 in March next year. 1n recent days, the appreciation of RMB has exceeded some expectations, but the impact will not be too big. For example, a pair of jeans makes 50 cents, Now it's about two cents less Zhong Haosen also said that although there are quite a lot of export orders in recent years, they have given up a lot due to price reasons. With the rising trend of various costs, it is likely that the export growth in the second half of the year will slow down compared with the first half of the year with the increasing pressure on export costs, Mao Xiahua, director of the trade management department of Shanghai Pegasus import and Export Co., Ltd., yesterday described the current difficulties in textile and garment export as “step by step”” 1t’s very difficult to raise prices to overseas customers, especially in the European market, which is still sluggish. However, it’s even more difficult to expand domestic sales. We have been trying hard to expand the domestic market for a year, but there is still no improvement at present. For enterprises like us, which have been mainly exporting for a long time, we lack experience in domestic sales and need a long time to explore. For the time being, we still rely on export orders. Facing the problem of RMB appreciation, we have also locked in the exchange rate. ” Mao said the cost pressure faced by the eastern coastal textile enterprises can be overcome by transferring the industry to the central and western regions. The Ministry of industry and information technology (M11T) confirmed on the 2nd that it will use financial and credit funds to support the merger and reorganization projects between Eastern Textile Enterprises and enterprises in the central, Western and northeast regions, guide the textile industry to transfer to high-end fields, and accelerate the pace of industrial upgrading Zhong Haosen just came back from his investigation in Xinjiang. He reflected that the local government very much hopes that eastern enterprises will invest in cotton mills in Xinjiang. As for whether the company has investment plans, Zhong Haosen declined to disclose by Li Suwan

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