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Exchange Rate Reform Affects The Survival Of Clothing And Other Manufacturing Industries

2014/2/24 12:45:00 21

Shishi: the exchange rate reform and the survival of the manufacturing industry are now the vast majority of Shishi < a target= "_blank" href= "//www.sjfzxm.com/" > clothing < /a > enterprises still use the US dollar as the main settlement currency, the export price of products may not change, but the appreciation of RMB makes the production cost of enterprises relatively rise. If a $100 thousand order is received, the RMB will lose more than 1000 yuan per litre of 100 basis points, and the export profit margin of the garment industry will be reduced by about 6%. 
 Huang Qingmiao told reporters that for 2008, the garment export industry of Shishi was a turning point. Before that, clothing exports were still at a high profit margin stage. After entering 2008, the cost of labor and financing increased, and the RMB exchange rate entered a period of accelerated increase, which completely encroached on the profits of export enterprises. 
 when it comes to the impact of RMB appreciation on the export of Shishi garments, Tian Qiming, President of the clothing trade association of Shishi a target= "_blank" href= "//www.sjfzxm.com/" > textile > /a > admitted that most of the garment export enterprises in Shishi are small and medium-sized enterprises. Labor-intensive clothing products mainly rely on low cost advantages to win the market. The added value of products is low, and the profit margin is generally less than 3%. In addition, the competition is fierce and foreign customers are relatively sensitive to prices, so the rapid appreciation of RMB has a direct impact and impact on them. 
 Tian Qiming told reporters without worry that recently, many emerging market countries such as Brazil, Argentina and India have depreciated their currencies, which is equal to the relative appreciation of the renminbi. In these countries, many industrial structures are similar to those in China, which will create new pressure on garment exports of Shishi. 
 breakout and transformation attempt 
What is the future of Shishi garment export? P.
 aiming at the disadvantages and risks of US dollar settlement, some Shishi clothing enterprises try to adopt RMB settlement, but the result is not very effective. "RMB settlement means transferring the exchange rate risk to the customers, so they will not do it." Wu Yuyan, general manager of Goldlion clothing company in Shishi, told reporters that in the second half of last year, the company tried to communicate with foreign customers and tried to settle in Renminbi, but was opposed by most customers, and some orders even lost. 
 some large garment export companies try to follow the third party financial system. Lin Yongdong, the head of Shishi Huayi company, told reporters that, through the establishment of trade and Clearing Corp in Hongkong, they would pledge their customers' orders to Hongkong's financial institutions, change them into dollars, then convert them into Renminbi, and then, when they settle accounts with merchants, convert the renminbi into us dollars and pay them to merchants. 
 "in this way, enterprises not only evade exchange rate risk, but also can form a weak arbitrage between the RMB and the US dollar over a long period of time, which means killing two birds with one stone." Lin Yongdong said. 
 however, in the view of Lin Jinchang, deputy director of Shishi Economic Bureau, this way is feasible for large enterprises, but it is not feasible for a large number of small and medium-sized enterprises. First of all, there is a certain threshold for the establishment of trade and Clearing Corp corresponding to the mainland factories in Hongkong. Secondly, if the size of the order and the trade volume are too small, deducting the relevant transaction costs may not be cost-effective, and the operability is also poor. 
Chen Jinlong, vice president of the school of business administration, Huaqiao University, believes that the export of Shishi garment industry is at a low level for P. However, the deeper reason lies in the fact that Shishi's clothing export has been in a rough state for a long time. A large number of garment enterprises are producing low-end products and low profit margins. With a small amount of profit, a large number of overcapacity have been formed. Once the environment of foreign trade is weakening, the industry will be easy to be passive. 
 "to reverse this situation, the entire Shishi garment industry must undergo an endogenetic transformation stage and transition to the stage of winning by brand, design and added value, and this process is difficult to achieve in the short term." Chen Jinlong said. 
Less than P, exports are becoming more and more difficult to do. Many enterprises are also trying to export to domestic sales. Huang Qingmiao told reporters that in order to expand the share of the domestic market, in recent years, the small leather company has registered and operated the three trademarks of "Tinker", "Hengye" and "Da Jin". At present, the proportion of export and domestic sales has been adjusted from 8 to 2 3 years ago to 6: 4. 
 in the view of Tian Qiming, export oriented enterprises turn to domestic sales, and they are also subject to "acclimatization". They will face a series of obstacles in brand development and marketing channels. Large enterprises are feasible, but for a large number of small and medium-sized enterprises, they do not have the strength to turn. 
 some garment enterprises are also exploring the transition to non manufacturing sectors and breaking through the way of extending the industrial chain. When interviewed by Xiao Pi Pi company, the reporter met Yang Zhongrong, a businessman who came to discuss cooperation with Huang Qing Miao. The two sides were willing to invest jointly to enter the children's entertainment industry. 
 exchange rate reform and the survival of manufacturing industry /p >
 > a href= "//www.sjfzxm.com/news/index_cj.asp" > RMB > /a > appreciation is a phenomenon under the background of China's exchange rate reform. At present, exchange rate internationalization is considered to be another core reform in the financial field besides interest rate liberalization. Because of the overall situation of opening up to the domestic economy, exchange rate reform can be seen as a whole. 
Less than 30 years after reform and opening up, relying on factors such as cheap labor, resources and environment, China has become the "world factory" and "made in China" is everywhere in the world. P Due to successive trade surpluses, China has fully bid farewell to the era of foreign exchange shortage in the early days of reform and opening up, and accumulated more than US $3 trillion in foreign exchange reserves. 
P, objectively speaking, the huge foreign exchange reserve is a double-edged sword. On the one hand, it has accumulated the wealth of the country and provided enough "ammunition" to the external economic security; on the other hand, it has formed an inertial and unilateral upward trend of RMB, which has brought enormous pressure to China's manufacturing industry. 
From the macro level, the current situation and experience of Shishi garment export is a test of the real economy under the background of exchange rate reform. It can be expected that, with the gradual advance of exchange rate reform, increasing the fluctuation of exchange rate is the general trend. The renminbi will gradually abandon the unilateral appreciation mode against the US dollar. This is a big test for all industries and enterprises that are extroverted in China. 
Less than P > 30 years of rolling development, including the traditional manufacturing industry of Shishi garment industry, has accumulated huge capacity at the same time of creating wealth. These capacity, in addition to meet the domestic market at the same time, more needs to find space in the international market. With the gradual internationalization of exchange rate, domestic manufacturing enterprises must have corresponding exchange rate knowledge and tools and means to deal with exchange rate risks while making single manufacturing. 
Under the background of great changes in the economic situation at home and abroad, the manufacturing industry in China is facing unprecedented pressure of development and transformation. Local governments at all levels need to increase the training and learning of exchange rate knowledge by organizing local entrepreneurs, introduce relevant talents, help enterprises improve their ability to avoid exchange rate risks, and actively respond to the challenges brought by exchange rate fluctuations and reforms. 
 the real economy is the support of the national economy. The impact of the fluctuation of < a href= "//www.sjfzxm.com/news/index_s.asp" > exchange rate > /a > will continue. Under the pressure, we must adhere to the industry and need the wisdom and courage of the enterprisers, and also need the support of the government and the society.