Korean Enterprises Escaping And Swiss Thinking

When some Korean companies are fleeing from Qingdao, they may not think of triggering such a strong reaction and thinking from China.

This event is not a case, which reflects the most direct feeling of foreign enterprises on the changes in the Chinese market environment.

Soon, the Pearl River Delta also exposed the news of the withdrawal of Taiwan funded enterprises, thus, people's reflection on the status of Chinese manufacturing enterprises began to enter the deep water area.

Foreign enterprises can not help but choose to escape, Chinese enterprises are not so free and easy, leaving them only two ways: to die in despair or to survive stubbornly.

Backward technology and inefficient enterprises should win the market for the fittest. But in the rapid pformation of industrial upgrading, we hope to have more rationality and priorities.

For enterprises to survive, pfer and upgrading are the two choices of enterprises.

Either go down to Nanyang, go to Africa, or move to the Midwest, but avoid the temporary storm. After five years or ten years, the cost of these places will be the same as before, where will it turn to then?

In addition to expediency, self upgrading is a long-term strategy.

The contemporary manager has conducted random sampling interviews with more than five hundred enterprises of the six hundred growth enterprises, and interviewed the Swiss Chamber of Commerce, Swiss renowned enterprises, Swiss enterprise research experts and Swiss Economic Promotion Agency special commissioner for Chinese affairs.

Bottleneck of Chinese Enterprises

After more than ten years of golden development, the comparative cost advantage that China once had was slowly receding. At the beginning, the processing or trading enterprises that entered China with this advantage could not afford such a heavy burden.

Wen / Yu Yi

Perhaps even the world's rigid fiber did not think that its fame in China would be 7 years after entering Yantai, Shandong. What they even imagined was the famous way. It was not because of what the Korean enterprise did at the local level, but because they staged the most successful collective night escape. In January 12, 2008, more than 10 South Korean managers left more than 3000 employees in the middle of the night.

In fact, South Korean enterprises' abnormal withdrawal from China is by no means the first time this year.

According to figures provided by the Korean Consulate General in Qingdao, the unauthorized withdrawal of Korean enterprises in Shandong started in 2003 and has not happened before.

21 occurred in that year, 25 in 2004, 30 in 2005, 43 in 2006, and 87 in 2007, up 1 times over the same period last year.

The analysis shows that the largest number of jewelry manufacturers in the Korean enterprises with "unauthorized withdrawal" are 63, while the rest are 33 garment factories, 28 leather factories, 14 suitcase factories and 13 shoe factories.

In the Pearl River Delta region, Taiwan funded enterprises and Hong Kong funded enterprises also appeared "abnormal withdrawal".

Many experts believe that these evacuated enterprises are basically labor-intensive enterprises, and most of them are small and medium-sized enterprises. When China enters the era of industrial upgrading, the survival of the fittest is inevitable.

Behind the "abnormal evacuation"

It is true that whether it is Korean enterprises or Hong Kong funded enterprises or Taiwanese funded enterprises leaving the mainland, whether labour intensive or other types of enterprises, at least one thing is common, that is the action response to China's increasing cost.

After more than ten years of golden development, China's comparative cost advantages are slowly receding. At the beginning, the processing or trading enterprises that entered China as an advantage could not afford such a heavy burden.

The abnormal withdrawal of foreign-funded enterprises is just an abnormal reaction to this, which reflects the changes of China's economic environment.

Faced with this change, foreign enterprises can still "escape", and local enterprises are not so lucky.

From 2006 onwards, China began to feel the intensive bombing of anti-dumping, textiles, footwear, lighters, candles, toys, agricultural products and so on. Chinese manufacturing began to encounter crises worldwide.

The rapid deterioration of the foreign trade environment has made it difficult for the labor-intensive enterprises in China to survive, and even the extreme incidents of the bosses being forced to commit suicide.

bottleneck

The RMB has completed the "break 7" in people's expectations. The US dollar has maintained a "stubborn" devaluation trend. The deep influence of the US subprime crisis has emerged. (many Chinese enterprises have discovered that the customer is bankrupt is the best proof). The rising labor costs, high oil prices, and even the high CPI, all kinds of unfavorable factors seem to meet overnight.

"Survival, or death, this is a problem!"

Hamlett's voice echoed through the hundred years of time in the sky of China today. Perhaps this is also the problem that countless small and medium business owners are suffering today, though it is so helpless.

According to statistics, 1/3 of the shoe industry enterprises in the Pearl River Delta region have been closed down, and more than 40 lighters enterprises in Wenzhou and other places are at the edge of crisis.

In Wenzhou, Suhang and other places where factories once stood, many factories have been defeated, far from the initial bustle and prosperity.

The statistics of foreign trade released by the Ministry of Commerce in February showed a sharp drop in China's import and export volume.

According to the latest data released by the National Bureau of statistics in March, CPI has reached a record high of 8.3%.

The rapid environmental changes have made Chinese enterprises, especially growth oriented SMEs, feel the crisis of survival.

The anxiety is written on the face of the small and medium-sized enterprises who are struggling to think.

Southward?

Westward?

There is only one way to die, and the way of survival can be chosen.

In this self rescue, some enterprises have chosen to run away and some enterprises have chosen to upgrade themselves.

The path of pfer has been tried, or down to Nanyang, or to the West.

Many Nanyang enterprises take Vietnam as their first choice, not only domestic enterprises, but also foreign capital enterprises often choose Vietnam when pferring China's capacity.

In addition to the similar economic system, operation management mode and cultural customs, the low labor cost is no doubt an important option for them to consider. At the same time, Vietnam's economic development is almost behind China's ten years of Vietnam, and the investment attraction in various places is also increasing. Preferential policies have also become the considerations of foreign enterprises entering Vietnam.

Not long ago, "contemporary managers" interviewed in Vietnam saw that many Vietnamese local governments were introducing various tax and land preferential policies to attract funds. Many Chinese enterprises invested in Vietnam also said that because it was hard to get such a cheap place in China, and it was difficult to have such preferential tax policies, Vietnam was still very attractive, especially for labor-intensive enterprises.

However, Vietnam's labor costs have also risen rapidly in the past two years.

"Contemporary managers" learned that in 2007 Vietnam's workers' wages had risen to about 600 yuan compared with before. Moreover, because of Vietnamese laws, the enterprises in Vietnam paid much more overtime wages than our country, generally three times daily wages, and strikes occurred frequently. Compared with domestic ones, these hidden costs were not low.

Moreover, with the rising rate of wage level in Vietnam, it may not take ten years, and their labor cost will reach the domestic level. By that time, I do not know where the enterprises in the South should turn.

Perhaps many people prefer to turn to the West.

Although the strategy of "western development" has been put forward for many years, and the policies and measures have also been promulgated, there are not many substantive actions at the enterprise level.

Nowadays, under the pressure of upgrading and upgrading of the eastern region, many enterprises have to shift the Western agenda to the agenda, which is not a good thing for the echelon development of China's eastern, central and western regions.

According to reports, in view of the present situation of industrial pfer in the Pearl River Delta region, some provinces in Jiangxi have sent personnel to Dongguan, Foshan and other places for attracting investment, and even Sichuan province has mobilized the whole province to make preparations for the industrial pfer in the Pearl River Delta region.

upgrade

In the long run, industrial pfer is only an effective allocation from an industrial perspective. From an enterprise perspective, the upgrading of competitiveness from low to high value-added products is probably the safest way to survive.

Because, for enterprises, even if they dodge the doom of backward production capacity and move to a relatively low cost area, five or ten years later, the upgrading of the eastern coastal areas will probably be their tomorrow.

It is the foundation and capital for enterprises to face the risks of industry when they are meticulous in industry, refined in products, strong in brand and firm in the market.

Swiss enterprises undoubtedly provide a reference for Chinese enterprises. As is known to all, Switzerland is famous for its strong innovation ability, and Swiss enterprises are taking root and even fruits in various countries around the world. It is the way of innovation that enables them to hold their own territory, no matter big or small, around the world.

Precise positioning, four faced marketing, deep ploughing and meticulous products make Swiss products gallop in the international market.

Their internal strength is worth learning and practicing in Chinese enterprises.

A Korean boss's reincarnation

From the president of Xin 15 Leather Co., Ltd. to the president of Xin 26 Leather Co., Han Qiming, "seemingly" is constantly turning around, wondering whether there are letters 37 leather and the emergence of letter 48 leather...

Red island city began to attract investment with preferential conditions. A Korean business owner was invited to the investment office of the Blue Island District of red island as a giant panda.

The terms of the two sides have already been talked about, and the name of the factory area has been almost finished.

The head of the drink, sitting at the end of the table, told the representative of the negotiations frankly: "you can help me finish the last three million dollars in investment quota, water and electricity, tax and land concessions."

The South Korean boss has been very happy to extend his cooperative friendship: "No problem!"

The two sides exchanged their business cards. The positive and negative side of the Korean boss's card was written in the two language of China and South Korea: Han Qiming, President of Xin 15 Leather Co., Ltd.

January 1, 2007

Since then, the minimum wage standard of districts and counties in red island has been adjusted to 799 yuan per month.

The Korean boss once said, "if one day, the basic wage of red island has risen to 800 yuan, we will have to withdraw to Vietnam."

However, Vietnam's massive wage adjustment in recent years has now reached an average of about 95 dollars (about 600 yuan).

The South Korean boss did not withdraw.

August 1, 2007

Leather export processing enterprises are facing the harsh environment of order reduction, labor cost and raw material price rise.

In the past three years, Xin 15 Leather Co., Ltd. has been increasing local bank loans, arrears of workers' wages for a long time, dragging the rent and suppliers' money, and even increasing the "liabilities" of customers to the maximum.

"They have been preparing for escape for 3 years."

Six months later, its partners were gnashing their teeth.

January 1, 2008

From this day on, the new enterprise income tax law was put into effect, that is, the current enterprise income tax and the income tax of foreign invested enterprises and foreign enterprises began to be unified, commonly known as "two taxes in one".

This is not good news for Korean bosses.

5:00 p.m. on January 24, 2008

The workers of the letter 15 leather company of Hong Dao City suddenly felt that the Han boss who had been strict had changed a little.

"It's going to be a new year. Everyone has worked hard for a year.

Today we collectively go to the Huanglong Hotel for dinner, and then we have two days off. "

The employer's generosity won the cheers of the workers.

Late January 26, 2008 at 0:00

There was a mess on the table of the boss's office.

The positive and negative sides of business cards are written in two languages of China and South Korea: Han Qiming, Xin 15 Leather Co., Ltd.