Egypt, New Layout Of China'S Textile Industry Overseas

At the two session of the thirteen National People's Congress, which was just concluded, Li Keqiang, premier of the State Council, referred to the "one belt and one road" 5 times in the government work report. This is also the sixth consecutive year since 2014 that the government has mentioned the "one belt and one Road" in the government's report.

Since China first proposed the "one belt and one way" initiative in 2013, the "one belt and one road" has been moving forward from point to point, developing steadily, and growing steadily in cooperation.

Over the past five years, China's textile industry has also stepped into the global layout stage, which has injected positive energy into the world textile economy.

Xu Yingxin, vice president of China Textile Industry Federation, pointed out that up to now, China's textile industry has accounted for more than 80% of the total investment in the textile industry over the same period. The number of textile and garment production, trade and product design enterprises in China has been distributed over 100 countries and regions. The investment in China's textile industry almost covers the entire textile and garment industry chain.

The layout of overseas productivity of China's textile industry presents a pattern of "mainland China + ASEAN + Africa".

Mohammed Kasenm, chairman of the Egyptian Federation of foreign trade, has been frequent in China since 2006.

Since China put forward the "one belt and one way" initiative in 2013, Kasenm has established ties with China's textile industry to promote Chinese textile enterprises to invest in Egypt.

In March 12th, he flew to Shanghai from a remote Egypt for 14 hours, and introduced China's investment policy and environment to the Chinese textile and garment industry at the investment promotion conference organized by the China Textile Industry Federation International Trade Office, the China textile international capacity cooperation enterprise alliance, and the China Textile Promotion Association of the International Trade Promotion Committee. The textile and textile industry in Egypt was introduced to the textile city of Egypt in Minya.

Take this opportunity, "textile and clothing weekly" reporter exclusive interview Kasenm.

Egypt is a springboard to Africa.

Textile and clothing weekly: do you often come to China? What kind of impression do you have on China?

Kasenm: I came to China for the first time in 2006. Since then, I have been there 2-3 times a year.

In the past more than 10 years, I have witnessed the tremendous changes in China's economy, especially the beginning of China's "one belt and one road" initiative.

As early as more than 2000 years ago, the Silk Road opened by the Chinese people has made outstanding contributions to world civilization. Nowadays, the construction of "one belt and one road" is the reconstruction of the ancient Silk Road, and once again brings the world closer together.

Egypt is also an ancient civilization, and the textile industry also has a long history. Since the Pharaoh era, the textile industry has always been the leading industry in Egypt, and the textile industry cooperation of the two ancient countries in the world is a new opportunity for Egypt's economic development.

Textile and clothing weekly: what are the unique advantages of investing in Egypt compared to other African countries?

Kasenm: at present, Africa is more like a running lion.

Data show that by 2050, Africa's GDP and population will double, and purchasing power will more than triple. Therefore, Africa has great potential for development, and the springboard to Africa is Egypt.

Among African countries, Egypt's textile industry ranks at the forefront.

Egypt's natural environment for cotton growth, Egypt's cotton is currently the world's best long staple cotton.

More importantly, Egypt's domestic textile industry chain is more complete, from cotton cultivation to spinning, weaving and garment manufacturing, which makes Egypt strong in the field of garment manufacturing.

At present, Egypt's textile and garment industry employs 1 million 500 thousand people, textile and garment exports account for 15% of its total exports, and its contribution rate to GDP is 3%, accounting for 22% of the total output value of the manufacturing industry.

In fact, Egypt has a more unique advantage than other African countries, namely, products entering the United States, the European Union, Arabia and other countries and regions all zero tariffs.

At the same time, Egypt is located at the strategic point of the maritime Silk Road, and is the central point of Asia, Africa and Europe, as well as the central axis of trade between Arabia and Africa.

From the map, Egypt can be said to be the center of the world.

In addition to its geographical location, industry and trade advantages, Egypt has many investment highlights, such as the political environment conducive to maintaining a sustainable system of ecosystems and ensuring long-term and stable economic growth; large and diversified economies can resist internal and external shocks and are supported by young and dynamic populations.

In addition, the government is committed to the continuous reform of the society, adopting positive fiscal and monetary measures, and revising the new investment law to improve the investment environment.

These undoubtedly provide macroeconomic support for Egyptian economic growth.

Exemption from taxes and fees in Minya Industrial Park

Textile and clothing weekly: what is the overall situation of the textile industry?

What support does the government have for the textile industry?

Kasenm: in African countries, the overall manufacturing level of Egypt is also at the forefront, largely thanks to Egypt's largest industrial park in Africa.

At present, there are 170 industrial cities and industrial parks in 27 provinces in Egypt, with 3 enterprises, 3 million 500 thousand of the manufacturing industry and 16.7% of GDP.

Among them, there are more than 7000 textile enterprises, 1 million 500 thousand of the labor force engaged in textile and clothing, 3 billion 200 million of the total output value of garment industry, and 56% of clothing exported to the United States.

Egypt's textile industry has been strongly supported by the government, including the establishment of an advanced textile base and the provision of the necessary infrastructure to achieve the vision of Egypt's "textile industry development 2025" and the sustainable strategy "Egypt vision 2030".

Its main objective is to promote the socio-economic development of Egypt; to attract foreign direct investment through the integration of textile industry; to seek regional integration to meet the growing demand of Africa's emerging garment industry; meanwhile, to increase the added value to cope with the growing export market, especially in the European Union and the US market.

Textile and clothing weekly: when you mention Egypt's Industrial Park, what do you recommend for Chinese textile enterprises?

Kasenm: in many industrial parks, Minya Industrial Park is suitable for investment in textile industry.

Minya Industrial Park is located in the location of the Nile River, 225 kilometers south of Cairo. It is very convenient to the Red Sea and Mediterranean ports, international and domestic airports.

The Elmynia province of the park has a population of 5 million 400 thousand, of which 18-30 are 35%.

The most unique advantage of Minya Industrial Park is tax exemption. Because the park is invested by the government, the government guarantees that the enterprises that have been settled permanently are exempt from all kinds of taxes, such as business tax and income tax. Besides, raw materials such as imported textile machinery and textile accessories are also exempt from customs duties.

Schematic map of Minya Textile City Planning

At present, the construction of the park is in progress. It is estimated that by the end of 2020, the park will open the land to investors.

I hope Chinese textile enterprises will invest in factories in Minya Industrial Park.

The cooperation between Egypt and China's textile industry is bound to be a "world opportunity".