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    Survey On Cost Dilemma Of Manufacturing Industry In Pearl River Delta: Suffering From High Cost Pain

    2008/4/17 11:33:00 25

    Pearl River Delta Manufacturing Industry Cost Dilemma Survey: Suffering From High Cost Pain.

    The Pearl River Delta is the forefront of China's reform and opening up.

    However, from last year to this year, there has been no escape from this area, such as the implementation of the labor contract law, the continued appreciation of the renminbi, the requirements for energy saving and emission reduction, the adjustment of export policy, the shortage of labor and the toxic toy storm. Where are the PRD going under all kinds of difficulties?

    In late 3, reporters visited various parts of the Pearl River Delta region.


    Pearl River Delta manufacturing industry suffers from high cost pain


    The shortage of "migrant workers" has led to the rising cost of labor. The manufacturing industry in Dongguan and Foshan has been moving to Vietnam or the mainland under the pressure of rising costs.


    Pearl River Delta


    The "Pearl River Delta" concept was first put forward formally in October 8, 1994. The Guangdong provincial Party committee put forward the construction of the Pearl River Delta economic zone at the three plenary session of the seven session.

    The Pearl River Delta was originally made up of 7 cities in Guangzhou, Shenzhen, Foshan, Zhuhai, Dongguan, Zhongshan and Huizhou and three parts of Huizhou, Qingyuan and Zhaoqing, which is commonly referred to as the Pearl River Delta.

    Later, the "Pearl River Delta" adjustment was expanded to the 9 cities of Guangzhou, Shenzhen, Foshan, Zhuhai, Dongguan, Zhongshan, Huizhou, Jiangmen and Zhaoqing along the Pearl River coast, which is usually referred to as the "Pearl River Delta" or "little Pearl River Delta".

    The "Pearl River Delta" area is 24437 square kilometers, less than 14% of the land area of Guangdong Province, with a population of 42 million 830 thousand people, accounting for 61% of Guangdong's population.


    Editor's note


    The Pearl River Delta, the cradle of China's private economy, has been the forefront of reform and opening up, and various rings have surrounded the land adjacent to Hong Kong and Macao.

    Over the past 20 years, that land has meant the opportunity to fish and leap. It has become one of the way out for young people in the countryside who can't get to university.


    However, in the past year, there has been no escape from this area, such as the implementation of the labor contract law, the continued appreciation of the renminbi, the requirements for energy saving and emission reduction, the adjustment of export policy, the shortage of labor and the poisonous toys.


    For this reason, in the late March, we visited various parts of the Pearl River Delta, interviewed various enterprises on the spot, learned their pain, knew their hopes, and touched the pformation and germinating power of the Pearl River Delta enterprises on the eve of the overall upgrading.


    Half a month, quite a bit, but only a glance.

    The Pearl River Delta is changing from our observation, but this change seems to have found a great direction.


    Exploration and upgrading after "shortage of migrant workers"


    Dongguan chapter


    One day in the late March, at more than ten o'clock in the night, the last bus to Dongguan from Guangzhou Baiyun Airport will arrive in Dongguan in an hour.

    During the journey, the lights in the factory buildings around the PRD have illuminated the highway with multicolored lights. The difference between the urban and rural areas is not clear here. In the past, the Pearl River Delta hinterland with rice aroma and insects has become a piece of factory building, linking Dongguan and Guangzhou into one piece.


    The crowded highway shows the prosperity of the whole Pearl River Delta and exposes the resource crisis of the Pearl River Delta.

    The thirty years of reform and opening up have enabled the resources of the Pearl River Delta to reach the critical point that they can bear heavy burden. What is going on now is probably the eve of the great pformation of the Pearl River Delta economy.


    The furniture business has gone through more than 200 employees in a few days.


    Tai Sheng furniture company in Dongguan base, in a few days time to walk more than 200 employees.

    Reporters in the Pearl River Delta interview, almost all factories are hanging out a large number of recruitment banners or billboards.


    March 28th, Dongguan Lingshan Town, Tai Sheng furniture.

    The furniture business has been developing in Dongguan for nearly 20 years. It has been listed on the main board of Hongkong stock exchange in 2005, and is known as the second largest furniture manufacturer in the world.

    The annual report shows that in 2006, the turnover of Taiwan's Taiwan dollar rose to 580 million US dollars, and the outside world had once said that the annual export volume of Taiwan's Taiwan dollar amounted to US $600 million.


    On the day of March 28th, the office of the head of the Dongguan base was not as calm as usual. A group of workers walked into the office of Liu Hanmin, who is responsible for the Dongguan base of Taiwan.


    At half past one in the afternoon, just after work, a dozen employees gathered in front of Liu Hanmin's desk: "Liu, must we decide to resign today?"

    Asked a young woman worker.

    "We must decide today. If we do not decide today, we will begin to sign the contract according to the new labor law and do what we need to do in the future."

    Liu Hanmin answered very simply.


    After a group of employees walked out of Liu Hanmin's room, another group of employees came in again. Liu Hanmin, who had just begun to be very steady, was also in a hurry. "Is not the notice posted in the factory?

    What's the problem? Look at that notice.

    Liu Hanmin said.

    At this time, the phone beside Liu rang again.

    The telephone was sent by another producer, who told Liu Hanmin that more than 100 employees were going to resign on that day. Liu indicated on the phone that one of his resignations would not be left, and that he would reopen the staff in April.


    However, when interviewed by the Pearl River Delta, reporters saw almost all factories hang out a large number of banners or billboards for recruiting workers. Some of them simply offered high benefits workers. The Spring Festival has passed for nearly two months, and recruitment difficulties still seem to be still unsolved.

    But in April, it is expected that the new employees will be replenish again.


    The head of the base told reporters that the furniture industry was depressed this year, and the number of employees in Dongguan base has been reduced from 5000 to 3000.


    In April 1st, the finance manager of Taiwan furniture told reporters that Dongguan base had taken more than 200 employees in these days.

    However, he believes that this is a normal flow of personnel.


    But the second largest furniture business in the world is facing more than just the problem of worker mobility. Factors such as the appreciation of the renminbi, the adjustment of the national export policy, the adjustment of export tax rebates, the shrinking of the market, the rise in raw material prices and so on have greatly reduced the living space of the company. In the process of the promotion, everyone has decided that 2008 is the "severe winter" period of Taiwan's rise, and no one knows how long this winter will last.


    It's not just factory investors who feel bad about their lives. They play script src=> in Dongguan.

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