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ReviewandProspect_TextileIndustry2009_20

By Eddie Snyder,2014-10-24 01:32
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ReviewandProspect_TextileIndustry2009_20

     ReviewandProspect

    ——Textile Industry 2009-2010

    By Nie Ting

    Although in 2010 textile industry still faces a series of uncertain

    factors, and export growth is difficult to recover in a short time, the domestic market will continue to play a significant role in the industry, structure adjustment and industrial upgrading will be carried out further in the nation. In the condition of the gradually stable international market environment, rebound can be seen in

    Chinese textile industry.

    Industry Performance 2009

    In early 2009 affected by the global economic crisis, China textile industry also had a downturn in yield, sales, export and investment, efficiency even got worse seriously. However,

    accompanied by the industry self upgrading and national macro-control policies

    e starts to show a steady upward trend. the economic circumstanc

    Yield increased ste adily

    January to November 2009, 53 thousand above- From

    ed size industrial enterprises in China realized output designat

    26.804 billion Yuan totally, 9.71 percent higher than value 34

    same period 2008, the increasing speed went up 2.21 that in the

    ntage points over that in January to August, or 4.5 perce

     percentage higher than that in January to May. Output of major products continues to grow

     generally. From January to November chemical fiber production rose by 14.89 percent compared with the

    e period of last year, increasing speed was up 1.58 sam

    6 percentage than the first eight months and the first and 7.0 onth respectively; yarn production jumped by 11.79 five m

    p ercent, compared with the first eight months and the

     February 2010 China Textile34

     first five month increasing speed went up by 2.04 and 2.77 percentage respectively; fabric production grew by 4.42 percent, increasing speed was up 3.32 and 5.28 percentage respectively. Export rose negatively Affected by the gloom in international market demands, a continuous fall can be seen in textile export 2009. From January to November China textile and apparel export totaled 154.12 billion US dollars, down by 11.02 percent compared with the same period of last year. Although the drop was lower than that in the first eight months and the first five months by 0.76 and 0.11 percentage points respectively, the export increasing rate has run into the bottom of recent years. The export decline mainly concentrated in small-scale enterprises. From January to November, export value of above-designated size industrial percent higher than that in the enterprises fell by 4.28 percent compared with the same period of last year, same period of last year, growth the decline was down by 2.57 percentage points than that in the first eight s p e e d w e n t u p 2 . 9 8 a n d 3 . 8 3 months, while that of small-scaleenterprises dropped by 24.04 percent. percentage points compared with Domestic sale growth speeded up the first eight months and five

    months, a trend of steady ascent Domestic market is the pillar of China textile industry. In 2009 under

    lasted. The recovery of industrial the national “domestic demand expansion” policy, the overall demands of

    investment growth is not only domestic market maintained a steady growth and played a positive role to

    the significant achievement of the whole industry for the sales’ rebound. According to National Bureau of

    Textile Industry Restructuring Statistics of China, in November 2009 retail sales of clothing consumable

    and Revitalization Plan”, but also was 24.7 percent higher than that of the same period of last year, which

    reflects the confidence in the was the highest point of growth speed of 2009. From November to January

    whole industrys restoration. it was up 18.4 percent totally, three percentage points higher than that of

    last year. Profit improved From January to November above-designated size industrial enterprises significantly realized an accumulative total domestic output value of 2674.033 billion P r o f i t m a k i n g c a n b e Yuan, 14.05 percent over that of last year, growth speed was 2.38 and 4.63 affected by many factors, such percentage higher than that of the first eight months and the five months as domestic demand, export respectively. Industrial proportion of domestic output value reached 79.89 VATs, loan costs and economic percent, was up 2.96 percentage points compared with the same period of environment. Based on a positive last year. role of these factors, China textile Investment climbed up stably i n d u s t r y e f f i c i e n c y h a s b e e n In the first eleven months of 2009, textile investment in fixed assets for significantly improved in the year more than five million Yuan totaled 270.802 billion Yuan, an increase of 9.53 2009. In the first eleven months

    February 2010 China Textile 35

     nfocus I

    total profits of textile above-designated size enterprises realized 133.149 billion Yuan, 25.39 percent higher than that of the same period last year, growth speed was up by 13.11 percentage

    points compared with the first eight months. From January to November the industry average profit margin reached 4.04 percent, an increase of 0.48 percentage than that of last year. Descent in employment continued

    In the first eleven months 2009, employment amount of above-designatedsiz e textile enterprises was 10.8424 million. Although it was higher than that of the end of August, compared with the same period of last year it went down by 0.46 percent (a total of 50.4 thousand people). The employment decrease has resulted from the decline in export, rise of labor costs, improvement of production efficiency etc.

Industry Trend 2010

    Compared with 2009, both in-and external environment for China textile economy will be improved. In general the industry has possessed the conditions for a steady recovery, but a series of uncertain factors are still in front of the whole industry.

    International market

    Thanks to rescue policies meted out by many governments, global economy started to show signs of picking up at the end of 2009. In 2010, with the further descent in the risk of developed countries’ financial system and the improving environment of world economy, a certain degree of recovery in the international market can be seen. According to the latest statistics of the World Bank, in 2010 global GDP will go from negative growth 2.2 percent in 2009 up to positive growth 2.7 percent, also world trade growth will rebound from negative 14.4 percent to 4.3 percent.

    36 February 2010 China Textile

    to in agriculture and social security is provided, so as However, at present unemployment rates

    residents living standards. All these further improve in the United States, Europe, Japan and other

    motivate domestic markets vitality.measures will major developed economies are still at a high record. Affected by these limiting factors China Uncertain factors

    textile industrys export growth will be slowed Although the general situation will look up in 2010, down in this year. v a r i o u s u n c e r t a i n f a c t o r s s t i l l p e r s i s t i n f r o n t o f t h e Domestic market industry. Textile raw material prices, like cotton, are rising

    rapidly, which increase cost pressure. International tradeIn recent years, accompanied by

    protectionism is increasing too, making more stress on the steady development of the national

    RMB appreciation, adding risk of textile export.economy and continuous improvement of living standards of urban and rural Conclusion

    residents, Chinas domestic market shows 2010 is the last year of 11th Five-Year Plan in textile an increasingly active performance. In industry, and the second year of Textile Restructuring 2010 Chinas macro-economic rebound will and Revitalization, the industry still has great potential continue to accelerate; a steady growth in spite of the bad impact from the world financial crisis ca n b e s een in d ome stic m arke t. At th e in 2009, and to expedite industrial structure adjustment same time, a series of national policies and upgrading is the main task of this year. With this to promote domestic consumption and task taking effect total factor of productivity (TFP) will be benefit peoples livelihood will continue to increased to the point that the technology weighs more on be carried out in terms of support to the the economic growth to meet the needs of the domestic countryside and consumer credit, in order to consumption sufficient to offset an export slowdown encourage consumption directly. Investment estimated for 2010.

    February 2010 China Textile 37

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