Wenzhou Manufacturing Industry Dare To Ask Where Is The Way?

Wenzhou is the "capital of private economy". Wenzhou has produced 10%-20% clothing shoes, more than 70% of shavers, locks, glasses, more than 90% lighters, Wenzhou's low-voltage electrical appliances, hardware products, automobile and motorcycle accessories, and ceramic products are very important in China.

The important position of Wenzhou's manufacturing industry in the whole country and even the world is very important.

However, in the face of the credit crunch and the decline of exports, Wenzhou's manufacturing industry, which has "unlimited scenery", needs to reconsider its living environment.

In recent days, the leaders of various ministries and leaders conducted intensive research on Wenzhou, which made the outside world worried about the crisis in Wenzhou. What's more, the development of Wenzhou's private economy has become a bottleneck.

After this reporter to the famous "Wenzhou model" research expert Zhou Dewen, President of Wenzhou SME Development Association, President Zhou said that there was indeed a certain crisis, but the bottleneck of development should not exist.

At present, 20% of SMEs in Wenzhou are in a state of shutdown or semi shutdown. Media reports say that 20% of SMEs in Wenzhou fail, which is not based on facts.

The twin pressures of crisis

Zhou Dewen has been engaged in economic theory research and enterprise management practice for a long time, and has followed the study of the Wenzhou model.

Zhou Dewen said, "the current crisis in Wenzhou is a normal phenomenon, and is the inevitable result of macroeconomic regulation and control.

After a period of development, enterprises will inevitably reshuffle and win the fittest, and big enterprises will start merging small businesses.

Under normal circumstances, it should be said that 10% of the proportion is constantly updated, which is normal. The proportion of Wenzhou is relatively high, which is due to internal and external factors.

Zhou Dewen said that SMEs in Wenzhou are facing both external and internal pressures.

The external conditions are mainly reflected in the pressure of monetary tightening, exchange rate changes and the implementation of the new labor contract law. Wenzhou's local factor constraints also exist. For example, Wenzhou's land is in short supply, and the industrial land has risen to about 3 million yuan per mu, forcing enterprises to invest and build factories elsewhere. If left behind Wenzhou, it will bring unprecedented cost pressure to the enterprises. The main problem inside the enterprises is that Wenzhou's manufacturing industry is always extensive, and the enterprises adopt a low cost and low price competition strategy. Most of the products fail to win by quality, and have no brand effect.

All these pressures make Wenzhou small and medium-sized enterprises in a predicament and face a crisis. But this is not the "Wenzhou characteristic". It is the embarrassment of the concentrated labor intensive enterprises. However, Wenzhou is more representative and people pay more attention to it.

Countermeasures for difficult loans

At present, the loans of major banks are still concentrated in large state-owned enterprises, and loans for SMEs are very difficult.

In view of this situation, Zhou Dewen believes that the central bank has repeatedly raised the deposit reserve. Its purpose is to control the heat of investment, which has a relatively large impact on SMEs' obtaining loans from banks.

At present, the private capital of Wenzhou has a scale of 600 billion, assuming that 10% of lending is 60 billion, and private capital will support these small and medium-sized enterprises.

In addition, private equity funds and venture capital capital in Wenzhou are very active, which will solve the problem of small and medium enterprises loans.

Zhou Dewen appealed to increase the pace of financial opening to the interior, such as the establishment of small business banks, community banks and small loan companies to solve the problem of loans for small and medium sized enterprises, and increase the pace of physical reform of investment and financing, such as the pilot of local bond market and the market of property rights trading. Accelerating industrial restructuring and capital pformation is particularly important for Wenzhou, and the government should establish venture capital fund.

Since the founding of the Wenzhou SME Development Association, it has actively advocated the establishment of SME guarantee system and directly led the establishment of a credit Company limited by guarantee to solve problems for SMEs. There are more than 270 Guarantee Corporation in Wenzhou now, which relieves the difficulties and guarantees of SMEs.

Zhou Dewen encouraged entrepreneurs to continue to carry forward the entrepreneurial spirit of Wenzhou people.

Countermeasures for export processing industry

Because of the subprime mortgage crisis in the United States, the credit crisis of American enterprises is also in crisis. This is a major blow to Wenzhou's export oriented processing enterprises.

Zhou Dewen said, this crisis has caused many small and medium-sized enterprises processing fees are in arrears.

On the face of it, this is a challenge to the concept of contract in American enterprises, because the contract concept of American customers was very strong before.

But for Wenzhou processing enterprises, this makes the normal liquidity of enterprises not guaranteed.

In addition, because of the appreciation of the renminbi and the depreciation of the US dollar, the exchange rate adjustment has made most of the processing enterprises profitable when signing contracts, but there is no profit at the time of delivery of the contract, which has a great impact on the survival of the enterprises.

Zhou Dewen believes that many Wenzhou people who have been baptized by the market economy have never been afraid of difficulties. Wenzhou businessmen who pioneered the development of private economy in the whole country have accumulated huge wealth through the first and second pioneering businesses. At present, the private sector has 600 billion capital and has the ability to resist risks.

In addition, Wenzhou people have flexible market mechanism and can quickly adapt to changes in the external environment.

Many entrepreneurs have adopted various countermeasures. First, the implementation of the "going out" strategy of Wenzhou enterprises and the construction of processing plants in foreign countries, such as the establishment of production bases in Russia by Kangnai group; two, the pfer of positions, the risks in the European and American markets, the development of markets in Africa and southeastern Asia; and the import and export enterprises that are also adjusting their internal settlement time to synchronize with the export settlement so as to reduce the risk of fund settlement.

Finally, Zhou Dewen hoped that the government should be vigilant in times of danger, enhance awareness of hardship, strengthen investigation and study, truly understand the current living conditions of enterprises, formulate policies that help enterprises to get out of difficulties, give appropriate preferential treatment in taxation, and take the initiative to help enterprises solve problems and solve difficulties, and urge enterprises to develop healthily.

Signs become trend inertia should not be underestimated.

As the most developed and active area of China's private economy and small and medium-sized enterprises, the enterprises in the Yangtze River Delta region frequently appear "abnormal" failures since the beginning of this year, and this phenomenon is changing from individuals to groups and from signs to trends.

The whole small and medium-sized private enterprises in the Yangtze River Delta region can almost be said to be home owners.

Those who can get away from the business can't wait to quit the entity business, and those debt chains are not clear. They often wake up and find that the boss has disappeared.

Enterprises suddenly shut down due to business difficulties, and there are many instances in the Yangtze River Delta and the Pearl River Delta region.

Among these batches of enterprises, they are mainly enterprises with high capital dependence or labour intensive enterprises.

In the macro control and tight monetary environment, these enterprises' "end of the road" can be said to be expected, but the thorny problem is that all this is just the beginning. For manufacturing, especially for export-oriented manufacturing enterprises, the worst time is still behind. According to the chain conduction effect of economic operation, the slowdown in the external consumption of China's imports and exports is lagging behind for 6-9 months, that is, the impact of the US subprime mortgage crisis on China's economy will further appear in the three and fourth quarter of this year.

Shi Jinchuan, an economics professor at Zhejiang University, predicted: "in the second half of this year, there may be a large number of small and medium-sized enterprises die wrongfully."

Take Ningbo Jue brook as an example, this tiny place once gathered more than 500 factories and formed a whole knitting industry chain.

The town of Xiangshan, less than 32 square kilometers, provides processing services to 30 top brands in the world.

By the end of June, there were more than 100 enterprises.

These world famous brand manufacturing enterprises that once produced "Puma", "Valentino" and "Nike" are now facing unprecedented crises.

There is no doubt that the current small and medium-sized enterprises need money to tide over the difficulties.

However, in the current situation, banks are more inclined to support large enterprises with higher safety margins, and the phenomenon of SME loans is more prominent.

More and more small and medium-sized enterprises in the Yangtze River Delta region can only maintain their development through private lending. The interest rates of these private loans are generally 4 times higher than those of bank interest rates, and some even 10 times higher.

According to the monitoring of Wenzhou branch of the people's Bank of China, in May this year, Wenzhou's private interest rate, reflecting the relationship between supply and demand of social capital, exceeded 12% of monthly interest rates. This is the highest historical record since 2003.

Because of the serious financial gap, many enterprises have broken the capital chain. At the same time, SMEs are mostly guaranteed by each other, and the debt chain is complicated.

In addition, small enterprises are in a difficult position, making the old industrial chains attached to large enterprises and supporting collaboration broken down, forming a dilemma of "no production and death, and production is fast dying".

Not only is the Yangtze River Delta region, it can be said that most of China's private enterprises have encountered 5 difficulties, such as rising raw materials, appreciation of the RMB exchange rate, rising labor costs, declining export tax rebates, and tightening monetary policy. The concrete performance is: output value has dropped markedly, and efficiency has dropped considerably; export situation is grim, growth has fallen to a low level; capital is generally scarce, and business is difficult to sustain; and survival is facing crisis, and the number of enterprises has been shut down and increased.

It is gratifying to note that the plight of private enterprises in SMEs in the Yangtze River Delta region has attracted the attention of decision-makers.

Recently, Li Keqiang, member of the Standing Committee of the Political Bureau of the CPC Central Committee and vice premier of the State Council, visited Hangzhou, Wenzhou and other places in Zhejiang.

Li Keqiang's research is part of the recent intensive research conducted by the central authorities. Premier Wen Jiabao went to Jiangsu and Shanghai. Vice president Xi Jinping went to Hongkong, Guangdong. Vice Premier Wang Qishan of the State Council went to Shandong and expressed concern about the current development of foreign trade and finance.

In addition to the central leadership, the relevant ministries and commissions such as the CBRC and the Ministry of commerce research team have also visited Wenzhou and other places many times.

In this regard, Zhou Dewen, President of Wenzhou SME Development Association, said: "the state has fully recognized the status quo of Wenzhou's SMEs and has attached great importance to it.

From the perspective of intensive research by many ministries, the government should introduce some policies to alleviate the pressure of SMEs in the second half or the first half of next year.

With the intensive research conducted by the State Council and ministries and commissions, Zhejiang, a large private economy province, has begun to "save" the small and medium-sized enterprises, which is the lifeblood of their economy.

The investigation report on the current situation of SMEs has been submitted to the national development and Reform Commission by the joint departments of Zhejiang.

In the report, Zhejiang bluntly stated that "many macro level problems are difficult to solve only by local governments and enterprises themselves". They called on the state to "further adjust and improve the existing policies" and put forward 6 suggestions for improving the development environment of SMEs.

2008 is the most difficult year for China's private economy, and of course, it is also a year of ebb and flow.

Internal worries and external difficulties have caused the birth defects of private economy to come out.

At this time, we need the support of external forces to tide over the difficulties. Otherwise, once we lose our vigour, we will not recover.

At the same time, the exit of private enterprises' economy in the real industry is bound to find opportunities in the virtual economy based on stock market, which will undoubtedly promote the harm of excess liquidity.

Therefore, under the current circumstances, maintaining and even improving the temptation of the real economy, as far as possible in the private capital to stay in industrial capital, is also the key to the success of macroeconomic regulation and control.