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At present, the epidemic is still spreading around the world, and international business exchanges and the circulation of goods are affected to some extent.Ernst & Young, a cross-cutting professional services organizationrecently releasedOverview of China's Overseas Investment in the First Three Quarters of 2020Display,2020In the first three quarters of the year, the overseas investment of Chinese enterprises continued to decline. The total amount of overseas mergers and acquisitions was 24.4 billion billion US dollars, down 50.6 percent from the same period last year, the lowest in the same period in nearly 10 years.In this year of ups and downs, how are the "going out" textile enterprises doing?

Africa: The risks remainOverall controllable

according to incomplete statistics,By the end of 2019, the stock of foreign investment in China's textile industry exceeded US $10 billion billion, overseas investment was distributed in more than 100 countries and regions, and annual sales revenue exceeded US $10 billion.In this process, Africa has become a key area for China's textile enterprises to deploy overseas with its advantages in resources, labor, policies and consumption potential.
In the face of the continued spread of the epidemic since 2020, exports and employment in the African textile industry have been affected, and Chinese textile enterprises in Africa have inevitably been affected.
Jiangsu Sunshine GroupIn 2016, it invested in wool textile dyeing projects in Ethiopia and set up a wholly-owned subsidiary.Sunshine Ethiopian Wool Textile & Dyeing Co., Ltd. As of the end of 2019, its Ethiown company has invested 0.469 billion yuan. Jiangsu Sunshine's 2020 semi-annual report shows that the project has been officially produced in the first half of 2020, but due to the epidemic and other reasons, production and operation have been affected to a certain extent.
Jiangsu Sunshine Group also pointed out that the differences in legal environment, economic policy, market situation, culture, language and customs at home and abroad have brought certain difficulties to the operation and management of Ethiopia. At the same time, changes in the local economic situation and changes in related economic policies may adversely affect the future operations of Ethiopia.
In addition to businesses, some industrial parks in Ethiopia were forced to shut down in 2020. The Ethiopian Oriental Industrial Park, developed and constructed by China Jiangsu Yongyuan Investment Co., Ltd., is planned to be 2.33 square kilometers and has 129 enterprises settled in the first phase. The agreed investment is 1 billion US dollars, the output value is 1.5 billion US dollars, and 16000 local jobs are solved. Liu Zhenghua, vice president of the company, admitted that the outbreak has delayed the construction of the second phase of the project. However, he said that the second phase of the project is still in progress and is planned to be completed in two years, and about 150 enterprises will be introduced. "the second phase of the project will aim to introduce upstream and downstream enterprises in the industrial chain, such as jeans manufacturing, to create a 'one-stop' model from cotton planting, spinning, textile, printing and dyeing to clothing."
Liao HongyingWork in the East Industrial Park in Ethiopia,Linde Textile Co., Ltd. Assistant General ManagerShe, looking back at 2020, which has just passed, is more relaxed: "The impact will be somewhat, and in March last year, the company was notified by customers in the US and UK that some orders had been delayed. Logistics has indeed stalled for some time, but the overall impact is still within acceptable limits."

Southeast Asia: affectedThere is an inverse

The outbreak of the epidemic has also pressed the suspension button for the development of the textile industry in Southeast Asia.The weak retail industry in many countries around the world, the closure of physical retail stores in Europe and the United States, and the sharp decline in textile and clothing sales have put the development of the textile and clothing industry in Southeast Asia in trouble.
So what are the changes in the development of China's textile enterprises in Southeast Asia in 2020?
Shenzhou International Group Holdings LimitedAs early as 2013, a fabric production base was established in Vietnam to better meet the orders and trade needs of core customers. By the end of 2018, VietnamDeli fabric factoryHas been able to bear 45% of the group's fabric supply. The company's recent financial report shows that in 2020, the capacity of the Vietnamese plant has reached 300 tons/day, which is the same as that of the headquarters.Ningbo Beilun Fabric FactoryIt's not much different.
Shenzhou International pointed out in the financial report that Vietnam's fabric factory will provide effective supply for the downstream production of Shenzhou International in 2021.In a volatile trading environment, the layout of overseas capacity makes the company's delivery capacity more stable. On the other hand, in the case of increased uncertainty in the global trade environment, overseas factories can flexibly allocate production for customers, which is more resistant to pressure.Shenzhou International's factory in Vietnam has enough capacity to take on the total number of orders currently exported to the United States, which can effectively hedge the impact of Sino-US trade friction.
It is understood that under the impact of the global epidemic, although Shenzhou International's major partner brands have suffered a decline in performance, but the company still maintained the stability of the business. In the first half of 2020, the company's revenue was 10.234 billion billion yuan, a slight decrease of 0.4 percent year-on-year.
Shaoxing Mulinsen Knitting Co., Ltd.Main types of rayon products, its products are mainly exported to Southeast Asia, and in Indonesia has a printing and dyeing factory and bonded warehouse. TheGeneral Manager Huang YongIntroduction, since September 2020, the company's operating income has turned from negative to positive, and for the full year of 2020, the company's annual sales increased by about 15% year-on-year. "The Indonesian factory is not only responsible for the production and storage of products, but also sends back the latest fashion information on the dynamics and patterns of the Southeast Asian market in the first place, which is then improved and developed by the R & D team at the headquarters, and finally makes new patterns and new products for different markets and regions. This also lays the foundation for the company to regularly send the latest product patterns to various customers." Huang Yong believes that going out to sea to open a factory not only retains old customers, but also attracts a large number of excellent new customers and enhances the competitiveness of enterprises.
However, the outbreak has also cast a shadow over some companies that have taken root in Southeast Asia. "Because of the outbreak, the company's orders are much lower, and it's estimated to be at least 30% lower for the year." A person in charge of a Cambodian textile company who did not want to be named admitted frankly that in 2020, the factory is often in a state of semi-shutdown.

Chinese textile enterprises: going out is still the trend of the times

The epidemic has changed the short-term layout of the global textile supply chain, and the external policy environment is complex. Chinese enterprises "going out" obviously need more early warning mechanisms and risk awareness in order to better participate in the reshaping of the global industrial chain.
Industry experts believe that before enterprises go out, first of all, they should do a good job in advance research, especially to understand the security risk review of foreign investment, understand the local laws and rules and regulations, and avoid blindly entering unfamiliar industries. Secondly, we should pay attention to both the initial cost and the integration cost, take a long-term view and do a good job in the development strategy. In addition, it is necessary to strengthen communication with local parties, establish a positive image, pay attention to fulfilling corporate social responsibilities, respect local customs and habits, and gradually cultivate a unique corporate culture.
Liao Hongying believes that the impact of the epidemic will be long-term, China's textile enterprises need to have a clear judgment, go far than go fast is more important. At present, enterprises should not only pay attention to the further changes of the epidemic, but also pay attention to the resulting changes in the international political landscape. But she remains confident about investing in the African market "The textile and garment industry is one of the pillar industries in Africa, and the southeastern region of Africa has the most dynamic textile industry in Africa and is an important cotton-producing region. Chinese enterprises can bring advanced technology and management methods to African countries, help improve local production processes, and try to transfer the large-scale garment production process to southeastern Africa as a whole."
The more we face downward pressure, the more we have to find a way out in a wider range.Zhou Zhaomei, Global Head of EY China Overseas Investment"Although the global economy will enter a recession in 2020 and various political and economic risks will be difficult to eliminate in the short term, economic globalization is still the general trend," he said. We believe that under the new development pattern of "domestic and international double cycles", "going out" will still be an inevitable choice for more Chinese enterprises. In the future, the focus of Chinese enterprises' overseas investment layout will still be areas and industries closely related to the development of the domestic real economy."