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What Makes Dongguan Shoe Industry "No Longer"?

2008/8/29 9:42:00 9

Footwear Industry Development In Dongguan

In the 30 years of reform and opening up, Dongguan's GDP increased by 119 times in 2007 compared with 1978.

This abstract data is reduced to the number of digits that we can touch. Today, 860 million yuan of wealth is created in Dongguan.

The "fifteen" Dongguan economic and social development review, released by the official website of the Dongguan Municipal Bureau of statistics, says, "the wealth created today is equivalent to one year in the early years of reform and opening up."

Then, the high-speed train of economic development began to slow down in 2008.

Since the beginning of this year, the Dongguan contract has made negative growth for the first time in 30 years.

The collapse of enterprises and relocation have also become another focus of social concern for Dongguan.

10 years ago and even earlier, people knew that Dongguan was a golden treasure. The factory buildings and the roaring of machines could provide many jobs for the surplus labor force in the rural areas of the mainland.

At that time, Dongguan was "two leading faucets". Capital and labor force were continuously pported here, and then became countless products, making money all over the world.

But now the Dongguan economy is facing a severe test. The introduction of foreign investment is negative for the first time, and the labor force seems to be unlimited supply.

Dongguan is accustomed to the "pool" which has been rising year by year. If it is not urgent to find a most suitable road, it may face the danger of being put out.

From the government to the ordinary workers, they are talking about where Dongguan's economy is going.

We are anxious. When we become a member of Dongguan, Dongguan's economy is one of the most important self-confidence in our hearts.

Let's not forget every clue. We carefully observe the wind direction of economic development.

Dongguan become 300 billion yuan club "upstart"

In 2007, Dongguan GDP reached 315 billion 100 million yuan, and first entered the threshold of "300 billion City Club". The membership of the "club" is only 13 cities in the whole country.

The miracle that Dongguan creates 860 million yuan per day depends on the contributions of numerous enterprises.

As of February this year, the number of private enterprises and individual businesses registered in Dongguan has reached 452 thousand and 900.

This figure is almost double that of 2004.

Changan Town, the "Star" of the National Star Town, was once one of the poorest villages in Dongguan.

Li Yuquan, the mayor of Dongguan, has once been praised by the media as a "thrilling" investment course.

At that time, Li Yuquan, mayor of Changan town Party committee and mayor Yuan De and his own crew card, took a small fishing boat to invest in Hongkong, and went ashore for two days and two nights.

It was such an effort that in 1981, Changan had the first "incoming processing" factory.

Subsequently, Dongguan put forward the upgrading and pformation of the industrial structure, focusing on the introduction of IT manufacturing industry represented by Taiwan funded enterprises. 95% of the world's IT products can be made up in Dongguan, so Dongguan made a name for itself. "Dongguan traffic jam and global shortage" have also become a true portrayal of Dongguan's economic status.

Transition pains economic slowdown

The rapid development of Dongguan is based on the over reliance on export-oriented economy.

The development pattern is characterized by rapid prosperity in the short term, and the shortcoming is that it is easy to be hollow due to the pfer of foreign capital.

This year, the central government designated Dongguan as a pilot city for the implementation of Scientific Outlook on Development.

Wang Yang, the provincial Party Secretary, also warned Dongguan in a frank way. "If Dongguan does not actively adjust its industrial structure today, it will be readjust by the industrial structure tomorrow."

An obvious sign is that this year, the Dongguan contract has made negative growth for the first time in 30 years.

Jiang Ling, standing committee member and deputy mayor of Dongguan Municipal Committee, said that the 1~7 month contract utilized foreign capital by US $2 billion 937 million, a decrease of 17.03% over the same period last year.

"This reflects the anxiety and wait-and-see mentality of foreign-funded enterprises."

At the same time, business closures are also paid attention to.

Cause analysis: five factors affect economic development

According to the analysis of relevant persons of Dongguan economic and Trade Bureau, the reasons for slowing down industrial growth are mainly affected by the following factors: the slowdown of world economic growth, the increasing number of international trade barriers, the further enlargement of national macroeconomic regulation and control, frequent occurrence of natural disasters, and the further increase of industrial structure adjustment in provinces and cities.

1. global demand declined and competition intensified.

Ye Hongdeng, former chairman of the Dongguan Association of Taiwanese businessmen, said in an interview with our reporter that the core problem of slowing the growth of Dongguan is the contradiction between global demand decline and intensified competition.

The US subprime mortgage crisis has led to a decline in the purchasing power of major consumer markets such as Europe and the United States. Now it is a time for global demand to decrease. However, the number of competitors is increasing, especially the rise of manufacturing industry in Southeast Asian countries, which weakens the competitive advantage of "made in Dongguan".

2. raw material prices rise profits shrink

"This year, the price of plastic is up to 30%~40%, and plastic occupies almost a share of 60%~70% in the total cost of a toy."

Xiao Senlin, general manager of the Hon Yi Dai toy factory in Dongguan, said that some dealers now only promise to raise the price by 10%. The cost of the remaining 10%~15% can only be borne by the enterprises themselves, and the profits of enterprises have been tightened again and again, which has seriously affected export confidence and even the survival of enterprises.

3. shortage of power hungry Enterprises

The tight supply of energy also affects the development of Dongguan's economy.

In February this year, some towns in Dongguan began to "open four stops and three".

Enterprises are underemployed, and industrial production is generally affected.

4. macro policy limits corporate profits.

Since the beginning of this year, the state has tightened its monetary policy, which has led to difficulties in loans to enterprises, and the repayment of loans has also been difficult.

In addition, frequent restrictions on processing trade began in the second half of last year, which also affected Dongguan's enterprises.

5.國(guó)際貿(mào)易壁壘增加成本

The increasing barriers to international trade, especially the continuous introduction of new environmental protection measures by the European Union, are also making the toy business owners restless.

At present, compulsory product certification fees include application fees, factory examination fees, approval and registration fees, supervision and reinspection fees, etc., all of which are applied, and the cost is high, and the cost of enterprises is increased.

縮影：一個(gè)鞋廠的倒閉

Naming a bus stop with a factory name is enough to explain the reputation and position of the factory.

Up to now, there are still 4 bus lines in Dongguan, which have "Chang Deng shoe factory" station.

However, the shoe factory, which has more than 7000 workers at most, has been closed for 8 months.

Similarly, there are often shops and rental houses around the shoe factories.

Mr. Feng, from Maoming, Guangdong, opened a telephone supermarket opposite the Chang Deng shoe factory 7 years ago. He sold mineral water and telephone cards, and received 6 yuan of water from reporters. He said with a bitter smile, "this is my only income this month."

He told reporters that the store had earned at least two hundred or three hundred yuan a day, and when the shoe factory was closed, the turnover was only more than ten yuan a day.