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    Wenzhou Leather Industry Enters Overseas Industrial Park Owners

    2008/5/29 17:40:00 20

    Wenzhou Leather Industry Enters Overseas Industrial Park Owners

    Wenzhou people's business sense of smell is really sensitive. Some people compare Wenzhou people to Chinese Jews. Some people admire Wenzhou's courage and boldness. Wherever there are business opportunities, there are Wenzhou figures, whether in troubled Afghanistan or in Iraq.

    Shao Zhanwei, Secretary of the Wenzhou municipal Party committee and mayor, said in an interview with the media that 600 thousand Wenzhou people now live in 93 countries and regions.

    They are engaged in mining, energy and other traditional businesses. Now, Wenzhou businessmen have extended their business tentacles to overseas industrial estates.


    From real estate group to overseas industrial park owners


    Wenzhou speculation group has been running the property market in China, becoming the indispensable promoter of China's real estate boom.

    Against the backdrop of the domestic stock market and the property market, the private capital of Wenzhou began to "cruise" in the overseas market under the background of the strengthening and deepening of the national macroeconomic regulation and control.

    Vietnam's "Longjiang Industrial Park" is one of the 19 successful foreign trade and economic cooperation zones of the Ministry of Commerce. The owner of this industrial park is Weng Mingzhao, a businessman in Wenzhou.


    Weng Mingzhao is chairman of Zhejiang Concord leather Limited by Share Ltd. He will not only build a leather factory in his "Longjiang Industrial Park", but also invite more than 200 labor intensive enterprises in China to build factories.

    "Longjiang Industrial Park" is located in the southwest of Vietnam, 40 kilometers away from Hu Zhiming, with a total investment of 105 million US dollars. It is the third warm industrial park outside Russia's usurusk economic and trade cooperation zone and the United States through science and Technology Industrial Park.

    The investor of the industrial park is the newly established Qianjiang Investment Management Co., Ltd., the initiating enterprise Zhejiang Concord leather company and Sichuan Qiansheng Mining Co. Ltd. accounted for 40.5% of the shares respectively.

    In the interview with reporters, Zhang Liming, director of the office of Qianjiang Investment Management Co., Ltd., said that the "Longjiang Industrial Park" plans to complete the project construction in 2012, and recoup the investment cost in 6 years. "But it really does not take such a long time to really operate."

    At present, more than 30 enterprises in Longjiang Industrial Park are talking about intentional enterprises, and another 17 enterprises have signed the lease agreement.


    From Zhang Liming's confident answer, we can see not only the good prospects for development of Longjiang Industrial Park, but also the confidence of China's capital in gold mining overseas industrial real estate.


    Looking for business opportunities in crisis


    The characteristic of capital is to maximize profits. With the change of business environment, capital will also be pferred accordingly. The relocation of enterprises in the Pearl River Delta region is actually the search for a more suitable business environment.

    Some enterprises exclaimed, "a big disaster is coming," but some people are looking for unlimited business opportunities.


    According to the "First Financial Daily" reported that Guangzhou customs latest statistics, this year 1~2 months Guangdong export shoes 490 million pairs, compared with the same period last year (the same below) 27.5%, worth 1 billion 590 million US dollars, down 0.6%.

    Among them, 190 million pairs of shoes exported by private enterprises in Guangdong decreased by 41.1%, and 190 million pairs of shoes exported by foreign invested enterprises decreased by 8.9%.

    The total exports of the two accounted for 77.6% of the total export volume of Guangdong's shoes in the same period.

    According to the latest data, the export volume of shoe products in Guangdong dropped by nearly 30% in the first two months of this year.

    The decline of export volume of Guangdong shoe products is not the shrinking of the international market, but rather the pfer of part of its capacity from Guangdong (mainly the Pearl River Delta) to the Southeast Asian countries such as Vietnam, India and Indonesia, which are much cheaper in operation.

    With the continuous increase of land cost and manpower cost and the large area of factory buildings, the pfer of labor-intensive enterprises to these areas will become an inevitable trend.


    With the presence of these enterprises and the development of local industries, industrial real estate will enter a peak period of development. It can be said that in Vietnam, India, Indonesia and other Southeast Asian countries, the cake of industrial real estate has been formed and will become larger and larger.

    For domestic industrial developers, what business opportunities are there for overseas upcoming industrial real estate banquet?


    First of all, the development mode of the processing industry in many places has traces of China, drawing lessons from China's development experience to a certain extent, and a large part of these enterprises are Chinese local relocation enterprises.


    China's industrial real estate developers have great advantages in developing such an industrial park, because now Vietnam and Kampuchea are like the Chinese market 20 years ago. Chinese developers have accumulated rich experience in the development of these 20 years. They can pplant good and successful experiences and avoid some failed lessons.


    Secondly, the land price appreciation is very large. Now Vietnam and other places are in the initial stage of industrial development, and the industry is still very backward. At this stage, the low land price is one of the notable characteristics. With the development of the local industry, the land price will also rise, and the first entry enterprises will enjoy the benefit of the appreciation of the land.

    This happened in China in the early days of reform and opening up. At that time, many Taiwan funded enterprises entered the mainland to invest and build factories. They bought land on a large scale, and later sold later when they needed land.

    It is understood that Vietnam's industrial land is extremely cheap, generally 1 square meters of land 50 years rent is only 1 dollars, such as in the domestic rent at least 10 dollars or more.


    In addition, the policy is relatively loose and the entry threshold is low.

    The requirement of a place for enterprises is closely related to the level of local economic development.

    Generally speaking, the higher the level of local economic development, the more stringent the requirements for enterprises, and the higher the threshold for entry.

    For example, Vietnam can enjoy Vietnam's foreign tax relief policy in respect of customs duties. The import of raw materials, materials and spare parts is exempt from taxation for 5 years, and the income tax rate is 10% within 15 years.


    Opportunities often exist with challenges. Vietnam and other places have low land prices and people.

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