SITUATION IN THE TEXTILE AND LIGHT INDUSTRY – ON THE AGENDA OF THE GENERAL ANNUAL MEETING OF THE RUSSIAN UNION OF ENTREPRENEURS OF TEXTILE AND LIGHT INDUSTRY (SOUZLEGPROM)

25.05.2017 г.
Today,  on May 24 of this year in the Chamber of Commerce and Industry of the Russian Federation, the final general meeting of the members of the Russian Union of Entrepreneurs of Textile and Light Industry was held. Heads of all companies-members of the Union, as well as deputies of the State Duma of the Russian Federation, heads of the Ministry of Industry and Trade of the Russian Federation, the Chamber of Commerce and Industry, the Russian Union of Industrialists and Entrepreneurs, a number of public organizations, scientists and media representatives took part in the event. During the event, along with organizational issues and summing up the results of  economic activities for the past 2016, the most pressing issues on the sectoral agenda were discussed. The participants stated that the “survival” zone of the industry basically ended. Thanks to support from the Ministry of Industry and Trade, the Industrial Development Fund, the SME Corporation and other structures, breakthrough growth points (textiles, leather and footwear sector, etc.) have been outlined. However, heavy conditions for bank lending, depreciation of the ruble, illegal re-export of Russia’s dumping and counterfeiting products, along with the tax burden and the growing shortage of high-quality raw materials in many sub-sectors of the light industry – these factors, according to the president of SOUZLEGPROM Andrei Razbrodin and other participants in the meeting, are over the industry. Elena Dybova, vice-president of the Chamber of Commerce and Industry of the Russian Federation in a welcoming speech noted that, in general, the light industry accelerates the pace of its development, and this trend is typical for an increasing number of sub-sectors of the light industry. At the same time, “the general economic situation is increasingly affecting the development of all production sectors, including light industry. A “state machine”, despite a more rapid response to trends in the industry, remains, nevertheless, inert and t is characterized by measures of direct or indirect support of the light industry as if “after”. Which, of course, makes it difficult to timely rectify the situation in any sectors of the light industry. ” According to Elena Dybova, the Ministry of Industry and Commerce and the Chamber of Commerce and Industry of the Russian Federation, together with SOUZLEGPROM, are increasingly cooperating in the formation of proposals to support promising investment projects in the textile industry. This, in turn, allows to increase the level of efficiency in solving industry problems. Yuri Smirnov, a deputy of the State Duma of the Russian Federation, expressed a similar opinion: “Thanks to the active position of the industry and business communities, along with growing attention of the Ministry of Industry and Trade and the State Duma to the problems of the industry, subsidies for the purchase of raw materials and materials, equipment and components have been allocated in recent years. Accordingly, the state support measures of the industry are expanding, although the volume of this support still lags behind the real needs of the light industry. “According to the deputy, among the topical problems of the industry are the deficit of highly qualified personnel, the “bugging” of supervisory bodies, and the tightening of the tax policy. For a comprehensive solution of these and other problems, “it is required,” as the vice-president of the Russian Union of Industrialists and Entrepreneurs Viktor Cherepov noted, “further development of coordination between departmental and business structures.” According to Victor Cherepov, the effectiveness of such coordination and, accordingly, its results were demonstrated, including at the recent Russian Textile Week . “Such complex measures should become regular, since they consolidate the  industry business, contributing to better mutual understanding with state institutions.” He also stressed that the light industry, along with the chemical industry and the agro-industrial complex, demonstrated growth in 2016. To maintain this trend, it is expedient “to further promote innovative investment projects in the textile industry. First of all, it concerns the development of the sub-sector of chemical fiber. And the proper investment of these projects is directly related to the creation of an industry bank. ” DSC 3617 The main report at the meeting was made by the president of SOUZLEGPROM Andrei Razbrodin. He stressed that the Union “is moving along the path of a self-regulatory organization, the geography of its activities is expanding. In this connection, the form and structure of the work of the Union are changing. We can say we are moving away from the stencil of standard reporting and election meetings, which will make our work more mobile and with more effective results. ” The President of the Union expressed his gratitude to the Ministry of Industry and Trade, the Chamber of Commerce and Industry, the Russian Union of Industrialists and Entrepreneurs, the State Duma of the Russian Federation for the growing attention to the problems of the industry, for better coordination of joint developments with the Union and other measures aimed at solving industry problems. “I believe that the new stage of such a successful interaction will be stimulated by the recent inclusion of Dmitry Kurochkin, vice president of the RF CCI, to the board of SOUZLEGPROM,” Andrei Razbrodin stressed. Concerning the main trends in the light industry, the head of the Union noted that the most successful in 2016 was the production indicators for the garment and leather industries. This became possible, in many respects, thanks to the support of the state and the FRP. New mechanisms of credit support for the light industry with the participation of the SME Corporation were also developed, “although these mechanisms, from the point of view of enterprises, require improvement and, most importantly, greater” transparency “. These issues, according to Razbrodin, are completely solved within the framework of close interaction of the banking, business communities and specialized state structures. “In this regard, it is characteristic,” stressed the president of SOUZLEGPROM, “that the Russian government increasingly invites the Union to thematic meetings. In the same vein – recent business breakfasts with profile ministries in the RF CCI “. Touching upon the state order and the relationship of the industry with retail, Andrei Razbrodin noted that relations with public sector supplying enterprises have been established, and “the participation of 15 large trade networks (CCC) at the last Russian Textile Week-2017 is, in fact, a record . In previous events of this kind, no more than three networks participated. ” It is also important that “joint efforts of the Union, the Chamber of Commerce and the Russian Union of Industrialists and Entrepreneurs have succeeded in obtaining state subsidies for the production of the school uniform and its components. In addition, the Union agreed with Roskachestvo to develop a single standard of this form. ” As for the main problems negatively affecting the industry trends, A. Razbrodin highlighted the continuing high level of imports of low-quality products and illegally re-export of the Russian light industry goods. In addition, the head of SOUZLEGPROM draws attention to the growth in the industry of wage arrears in the industry and, in general, to the “high level of non-payments in the light industry, related, inter alia, to the policy of the banking sector. And, although the total production growth in the industry in 2016 was 7%, in terms of loan capacity – in one of the last places, in comparison with other industries.” DSC 3632 Among the proposals of the Union, Razbrodin singled out, firstly, the organization of state subsidizing of  industry exhibition and fair activities. Secondly – the industry award “Golden Spindle” is proposed to be transformed into an all-Russian premium competition. By the way, the chairman of the fashion industry committee of the Union Lyudmila Ivanova informed about the results of the Golden Spindle-2016 award and announced the receipt of applications from the participants of this award this year. The winners will be awarded on March 20, 2018 in the framework of the forthcoming “Russian Textile Week-2018”. Irina Ivanova, deputy director of the Internal Trade Department of the Ministry of Industry and Trade of the Russian Federation, drew attention to the fruitful work of the ministry with SOUZLEGPROM and the RF CCI. Noting at the same time that such a partnership allows more quickly solve emerging problems in the industry and develop promising “response measures” on the situation in the industry. ” Concerning the geography of prospective investment projects in the industry, the deputy head of the department stressed that the Ivanovo region is “one of the foremost clusters of innovative development of the industry and, above all, is a PET-complex project in Vichugsky district aimed at developing import substitution of polyester fibers and products based on them. At the same time, under the auspices of the Ministry of Economic Development, a project is being developed, “according to which it is recommended to classify light industry as a segment of small business. In this case, the industry will receive tax incentives and other preferences. ” But the realization of these and other plans directly depends, according to I.Ivanova, “on the prestige of the textile worker’s profession. To increase the popularity of this profession is a complex task, which has an important social component. ” Irina Ivanova informed the audience that on August 22 this year a  government meeting on the textile industry will be held under the chairmanship of President Vladimir Putin. “What,” Ivanova emphasized, “is a new confirmation of the growing attention of the state to the problems of the industry.” Speakers at the meeting were unanimous in the opinion that SOUZLEGPROM’s increasingly active position in developing industry solutions positively influences the state sectoral policy. And the line pursued by the Union for the consolidation of the industry business community will enhance the effectiveness of state policy in the textile and light industry, as well as the development of import substitution in the consumer market.
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