Shishi Garment Industry: Expanding Non Dollar Market

From Shishi National Revenue Bureau, the first quarter of the city's clothing exports 31 million 610 thousand US dollars, an increase of US $5 million 400 thousand over the same period last year, but due to the decline in the US dollar to the RMB exchange rate, the actual profit margins have been compressed by about 10%%.

Although the export volume of garment exports increased slightly in the first quarter of this year than that of the same period last year, after deducting the export volume of the new export enterprises this year, the total export volume of the garment export enterprises in Shishi City is very small, and the profit margins almost have to be compressed by about 10%%.

According to statistics, the export volume of Shishi garment export enterprises rose slightly in the first quarter, and the export volume dropped by 8, and the export volume of some enterprises declined greatly, the largest compared with the same period last year, or even down by 50%%.

According to the state tax staff, there were 38 garment export enterprises in 2007. The total export volume of clothing was 10694 US dollars, accounting for 43.3%% of the total export volume. Clothing exports accounted for almost half of the total export volume of lions, mainly exported to the Middle East, Europe, the United States, Japan and other countries and regions.

Shishi private clothing enterprises are mostly labor-intensive, especially the processing OEM enterprises. The added value of clothing is not high and exchange rate risk should not be overlooked. In order to actively adapt to the trend of RMB exchange rate fluctuations, many export-oriented enterprises in Shishi have adopted hedging mechanisms in the exchange market, expanding financing channels and avoiding the risk of exchange rate fall.