Guangdong Textile And Clothing Export Negative Growth

With the appreciation of the renminbi, the rising prices of oil and raw materials, and the continued weakening of the international market, especially the European and American markets, China's textile industry is facing the dilemma of "internal and external troubles".

Customs data show that in the first two months of this year, textile and clothing exports in Guangdong province decreased by 11.3% compared with the same period last year.

Some textile and garment enterprises in the Pearl River Delta region reflect that 2008 will be the most difficult year for the textile industry. The industry shuffle is inevitable. The crisis of survival will force enterprises to pform from relying on production capacity to continuous innovation and diversification.

Some of the data since 2008 are worrying about the prospect of textile and clothing exports this year. According to the data of Guangzhou customs, from 2008 to February, China's textile and apparel exports amounted to US $16 billion 440 million, but increased by only 5.7%.

As the largest province of textile and clothing export in China, Guangdong textile and apparel exports were 3 billion 520 million US dollars, down 11.3% from the same period last year.

In 2007, the growth rate of textile and clothing exports in the whole country and Guangdong increased by 18.9% and 18.7% respectively.

The order determines the production and the shortage of orders becomes a common problem faced by the textile and garment enterprises in the Pearl River Delta.

Chen Shubin, general manager of Foshan textile and garment industry association and general manager of Foshan Chiao Li Chemical Fiber Weaving Co., Ltd., said that the export market of Guangdong textile and clothing was mainly European and American, the prices of European and American markets were relatively high, and the order volume was relatively large.

The weakening of the US economy since last year has led to a decline in orders from Europe and the United States, which has caused great pressure on the export of enterprises.

According to customs statistics, Guangdong garments exported to US $4 billion 440 million in 2007, a slight increase of 2.5% over the previous year, and from 2007 to February this year, the export volume of clothing to the United States was 280 million and 160 million US dollars, down 27.9% and 41.9% from the same period last year.

At the same time, changes in policies at home and abroad and rising prices of raw materials have become a "straw" added to textile enterprises.

- the appreciation of the renminbi.

Since 2007, the cost of enterprises' export exchange has been increased by 20% to 25%.

- labor costs increase.

After the Spring Festival, the average wage of textile workers in Foshan Xiqiao Town, a famous textile town in China, has reached 1600 yuan to 1700 yuan per month, up 20% over last year.

Oil and raw materials prices continue to rise.

Since the second half of last year, rising international oil prices have brought enormous cost pressures to textile enterprises.

The rise in oil prices has directly led to a surge in prices of petroleum and chemical fiber products as raw materials for textiles, and pport costs have also risen substantially.

At the same time, the prices of raw materials such as cotton (14710, -25.00, -0.17%, bar) and other textile and clothing are also rising sharply.

Source: Shanghai Securities Daily