The Chairman of the Peruvian National Union of Textile Entrepreneurs (UNETE) said that the Lima Market is the main textile and garment wholesale center in the country, gathering nearly 31,900 micro, small and medium-sized enterprises, of which as many as 99 % are micro manufacturers, employing 100,000 employees. The Gas Market has been closed for more than three months due to the COVID-19 epidemic. Although it resumed operations in late July 2020, it has only returned to 60% of its pre-epidemic operating volume. It has lost more than US$1 billion so far, and may lose more than half of the market and There was massive unemployment, so suggestions were put forward for the government to adopt.
Chairman M pointed out that the Peruvian textile industry is currently facing difficulties, mainly due to the difficulty in obtaining low-interest government loans and low-price competition from Chinese textile products. The analysis is as follows:
(1) Difficulties in applying for low-interest loans under the “Revitalization of Peru Plan”: This plan is for the Peruvian government to help companies respond to the impact of the epidemic and maintain a virtuous cycle in the industrial payment chain. The government provides credit guarantees to assist companies. Apply for low-interest loans from banks, but most micro-manufacturers operating in the market are financed through rural or local credit cooperatives and lack bank credit records. Therefore, only 3% of manufacturers have obtained such low-interest loans so far.
(2) Encountering unfair competition from low-priced textiles from China and other Asian countries: Although the Peruvian Ministry of Production has submitted defense and knowledge competition to the Peruvian country at the end of June 2020 The property rights protection agency (INDECOPI) has applied for defensive measures against Chinese garment products. However, low-priced Chinese textile products continue to flood into the Peruvian market, with each piece of clothing selling for only US$1 to US$1.5, eroding the original market of local manufacturers.
The Peruvian National Textile Industry Federation hopes that the government will relax the low-interest financing conditions for small and medium-sized enterprises in view of the current difficult situation faced by the textile industry. In addition to promoting the “Revitalization of Peru”, the Peruvian Ministry of Economy and Finance In addition to the “Plan”, there is also a “Relief Loan for Small and Medium-sized Enterprises” (FAE-Mype). Chairman M suggested lowering the application threshold for this loan to facilitate small and medium-sized enterprises to apply for loans smoothly.
At present, there are still 50 stores in the Gasdfssdfsmasdfssdfsrrasdfssdfs market that cannot restart operations. However, there are a large number of informal operating stalls gathered around the market, causing unfair competition for formal operators. Therefore, it is recommended that the government crack down on illegal stalls to avoid expanding the losses of market vendors and worsening the unemployment problem. </p
