More Than 10000 Hong Kong Businessmen Considering The Possibility Of Leaving Guangdong

During the two sessions, Huang Huahua, governor of Guangdong Province, stressed that Guangdong would not abandon the Hong Kong businessmen. But recently, the latest survey by the Hongkong Federation of industry shows that some Hong Kong businessmen will have to abandon Guangdong.

It has been revealed that enterprises involved in the Pearl River Delta business environment estimate that about one to 20% factories in the past year have been unable to bear the cost pressure and have closed down, and another one to two businesses will be closed in the next two years.

The incomplete statistics of Hongkong Federation of industry and Commerce show that there are as many as 8 Hong Kong businessmen investing in the Pearl River Delta. According to this ratio, there will be more than ten thousand choices.

However, the Hongkong Federation of trade unions reminded that the survey was not necessarily able to fully respond to the Hong Kong businessmen's intentions in the Pearl River Delta because of time constraints.

The new labor law cost increased by 10%.

It is reported that the survey was conducted in two weeks, and 162 valid responses were received, including 18 industries, but mainly in toys, textile and garment, leather, clock and electronics, plastic and printing industries. Among them, 54% were Hong Kong funded enterprises and 39% were three to one supplement enterprises.

The survey documents show that this year's labor contract law has caused the greatest pressure on the continued operation of Hong Kong businessmen. Its severity is before the appreciation of the renminbi, the adjustment of processing trade policy, the shortage of labour and the tight supply of water and electricity.

More than half of the enterprises pointed out that the cost of labor contract law increased by more than 10% after the implementation of the labor contract law, nearly half of which indicated that the labor cost increased by more than 20%.

At the same time, nearly 30% enterprises have been involved in labor disputes after the implementation of the law.

Manufacturing industry faces elimination and integration

In the face of challenges including the implementation of the labor contract law, Hong Kong businessmen have backed away.

Hongkong Federation of industry and Commerce said that the survey showed that about 15% of enterprises expressed intent to move their factories away from China, and 20% enterprises even planned to conclude their business.

In addition, as labor costs continue to rise, about 30% of enterprises will reply to other enterprises, and the mode and scale of future business may change.

Liu Zhanhao, vice chairman of the Hongkong Federation of trade unions and chairman of the Zhujiang Delta Industrial Association, suggested that "the different interpretations of the legislative provisions have led to more and more labour disputes. The mainland authorities must clarify some of the legislative provisions as soon as possible so as to reduce disputes."

He also suggested that the mainland should speed up infrastructure construction in the central and western regions and create conditions for the gradient pfer of industries. At present, more than 90% enterprises say they will not move their factories to the central and western parts of the mainland in the near future.

Liu Zhanhao pointed out that backward infrastructure, changing policy environment and labor shortage have reduced the pace of pfer. To attract investors, there must be significant breakthroughs in these areas.