The Collapse And Pfer Of Enterprises In The Pearl River Delta

At the beginning of this year, there were four rumors of massive withdrawal of foreign capital in Guangdong province. The news of the closure of thousands of Guangdong shoe enterprises and the closure of more than ten thousand Hong Kong enterprises have further aggravated people's anxieties about the future development of the "world factory" in the past, and aroused the suspicion of various circles regarding the social and economic stability in the Pearl River Delta region.

In the face of widespread anxiety, Huang Huahua, governor of Guangdong Province, came out last month to clarify that the Pearl River Delta enterprises did not move a lot.

On the one hand is the media's "propaganda" of the collapse and withdrawal of the tide. On the one hand, the governor made an effort to clarify at the important meeting, which made the rumors of the collapse of the PRD virtually more confusing.

The author believes that it is not very meaningful to argue that the collapse of enterprises in the Pearl River Delta is not significant, but it should be seen from this storm that the pformation and upgrading of the Pearl River delta industry is imperative.

Failure is within normal limits.

At the beginning of the year, the reports of massive bankruptcy and relocation of enterprises in the Pearl River Delta were overwhelming, and even affected the nerves of Guangdong province.

Under the special instructions of the main leaders of the Guangdong provincial Party committee and the provincial government, the Guangdong provincial foreign trade and Economic Cooperation Office has set up a special research team and five leading soldiers have been led by five leading teams to conduct research.

According to the survey data, only 244 foreign-invested enterprises actually moved in Guangdong in 2007, of which 28 planned to move.

Take the media coverage of Dongguan as an example, there are more than 15000 foreign-invested enterprises in the city, 909 of which are cancelled and revoked in 2007, and 114 enterprises in pition, of which 94 are converted into foreign-invested enterprises, 20 are private enterprises, and 40 are relocation enterprises, of which only 2 of the footwear enterprises are relocated.

The above is the specific situation of the closure and relocation of enterprises in the Pearl River Delta.

The number of new businesses is also mentioned in the survey data.

In 2007, there were more than 7000 new enterprises in the Pearl River Delta, including more than 700 new foreign-invested enterprises in Dongguan.

Analyzing the survey data, the number of enterprises migrated from the Pearl River Delta to the new enterprises is really not worth mentioning.

Although the number of revoked and revoked enterprises in Dongguan is larger than the number of new enterprises, the contractual foreign capital (US $6 billion) involved in the new enterprises is far greater than the cancellation and revocation of the funds involved (US $1 billion), and the quality of the new enterprises is more optimized.

"In fact, every year, a batch of foreign-funded enterprises are closed down in the industrial and commercial sector in Guangdong."

The head of the research group said.

This is actually a move out of the market.

According to statistics, in the 28 years from 1979 to 2007, the average annual

Close 2531 foreign-funded enterprises.

Among them, from 2005 to 2007, the number of foreign-funded enterprises in the province was 668, 747 and 813 respectively, and the number of revoked was 3475, 3543 and 3118. In the same period, the total number of newly approved foreign direct investment enterprises in the province was 8384, 8452 and 9506 respectively.

A slight calculation of the above data shows that the total number of foreign-funded enterprises in Guangdong has maintained steady growth after the increase and offset are offset.

This fully accords with the law of economic development.

Industrial upgrading is the key

In the process of economic development, some enterprises are moving out and some enterprises fail. This is a normal phenomenon and a necessary process of industrial structure adjustment and optimization and upgrading.

Among the enterprises in the Pearl River Delta, 90% are processing trade enterprises, most of which are still in the stage of labor intensive enterprises.

Such enterprises are extremely sensitive to changes in costs. With the increase of production and management costs, they will have to pform and upgrade in order to survive and develop.

It is understood that in view of industrial pformation and upgrading, the Guangdong provincial government and the Hongkong government have set up a Pearl River Delta industrial pformation and upgrading group.

From two aspects to help enterprises complete pformation: upwards, to R & D development; next, to maximize the development of the market.

Huang Huahua revealed at the meeting that Guangdong is developing preferential policies to encourage traditional processing trade enterprises to pfer to Guangdong's mountainous areas and East and West wings.

In the past, processing trade enterprises and foreign-funded enterprises were mainly imported and exported, and they were not allowed to sell domestically. Now they are inclined to these enterprises in policy, allowing them to turn to domestic sales. On the one hand, they can increase the profits of enterprises, and on the other hand, they can also contribute a lot to the tax revenue of local governments.

Upgrade, leave the root

PRD enterprises how to spend the pition pains, a beautiful turn, which is the industry's general attention.

Is upgrading locally or across the board retreating? Is it "uprooting" or "keeping roots"?

It depends on whether the enterprise is really hopeless.

From the enterprise itself, the risk of uprooting is enormous unless the enterprise has fallen into a dilemma of bankruptcy in the Pearl River Delta.

A Hong Kong businessman, who declined to be named, told reporters.

His company pferred part of the production line to Heyuan last year. "For new investment sites, we have to adapt to a period of time. Even if we move all the shops, we must take steps to control new investment risks."

Therefore, it is best to keep the roots until the last resort.

After all, it takes a long time to work in a place. The accumulated resources and connections are conducive to the long-term development of enterprises, and the industry matching is very mature.

If we root out and move to a new environment, all of the above needs to be rebuilt. This will slow down the pace of enterprise's redevelopment.

Besides, relocation is not the only way.

Sun Qilie, chairman of Hongkong Jian Le Shi Enterprises Limited, said that not all the Pearl River Delta processing trade port enterprises are suitable for relocation.

He believes that enterprises with high technology content, high added value and small environmental pollution can stay in the Pearl River Delta region.

Because the PRD can provide more efficient market environment and more mature industry matching than other places.

With this in mind, it is not sensible for an enterprise to rush across the board entirely.

Moreover, from the perspective of the future industrial layout of the PRD, these enterprises are also what the local government wants to stay.

As a matter of fact, most enterprises have moved out of the manufacturing sector only in Guangdong, and the high-end links such as R & D, sales and logistics remain in the PRD. The strategy of "headquarters economy" launched by the major cities in the Pearl River Delta is indicating that all parts of the country are moving towards the direction of industrial pformation and upgrading.

Although the storm of the collapse and pfer of enterprises in the Pearl River Delta has begun to calm down, the debate has not stopped, and it is only a prelude to the adjustment of industrial structure.

How to seize opportunities, strengthen existing talents, logistics and market advantages, attract more high value-added services and manufacturing industries to settle down, successfully accomplish industrial pformation and upgrading, and prevent the phenomenon of real mass migration, which are the issues that the government and enterprises and insiders need to seriously ponder.