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Hong Kong Enterprises Are Moving Away From The Mainland.

2008/5/12 0:00:00 57

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A large group of Hong Kong funded enterprises to explore the investment environment of Vietnam and Kampuchea

The Mekong River may never attract the attention of Hongkong enterprises as strongly as today.

Reporters learned yesterday that 43 Hongkong manufacturing enterprises have just completed the inspection of Vietnam and Kampuchea.

"Our aim is to explore the feasibility of moving the production line to Vietnam and Kampuchea to ease the cost pressure on the production line of the PRD.

These enterprises have no longer concealed the impulse to move away from the mainland.

勞動密集型企業最有“搬家”動力

"We find that Vietnam today is just like the mainland of China ten years ago, which is on the eve of economic start."

Liang Junyan, member of the board of directors of Hongkong Trade Development Council and Lin Tianfu, President, recently encouraged Hongkong enterprises to establish partnerships with Vietnamese manufacturers.

He believes that it is necessary for Hong Kong businessmen to pay attention to Vietnam's market and formulate investment strategies.

Many plans for the relocation of manufacturing bases from the mainland have not been denied.

Last week, a delegation of Hongkong TDC, together with the Hongkong garment industry association and Hongkong Footwear Association, went to Vietnam and Kampuchea to meet with government officials to participate in a forum on local investment environment.

The delegation included 29 representatives from the Hongkong garment industry and 14 representatives of the footwear industry in Hongkong.

"These enterprises have production plants and are interested in relocation of factories."

Hongkong's TDC's stakeholders told reporters that the situation of different types of enterprises is also different.

For industries, such as jewellery, which are the main cost of raw materials, the cost pressure is relatively low due to the fact that the raw materials such as metals or other precious metals are settled in US dollars.

But for labor-intensive industries, the appreciation of the renminbi has had a direct impact as wages are calculated in Renminbi.

However, for the Hong Kong businessmen who set up factories in the mainland, this is not the only reason for the cost and profit pressure. "Wage increases, processing trade policies and so on are the main cost pressures."

"Vietnam's labour cost is only 1/10 of the mainland".

In fact, with the appreciation of the renminbi and the soaring cost of manufacturing in the mainland, sporadic industrial pfer has shifted to intensive pfer in the past few months, challenging the Pearl River Delta as the manufacturing center.

At present, the total amount of China's manufacturing industry is the second largest in the world, and the output of 172 kinds of products ranks first in the world, and the complete industrial system plays an important role in the industrial division of labor in East Asia.

However, the possible tide of industrial pfer has already stimulated Vietnam and other Southeast Asian countries with more labor cost advantages.

The reporter learned from the business department of the Ministry of Commerce in Hu Zhiming, at present, Vietnam nine Longjiang plain area except thin Liao and Jian Jiang Province, the other 11 provinces and cities have built 29 industrial zones, and the favor of Hong Kong businessmen is likely to let the proportion of these industrial areas rent in the next few years.

"The cost of labor in Vietnam is only 1/10 of that in the mainland."

Yu Yaochang, executive vice president of Galanz, told reporters that Galanz did not plan to reduce the scale of production in China. However, whether from the perspective of cost or industrial safety, Vietnam has entered the vision of this export oriented enterprise.

專家稱中西部仍有發展空間

For the desire of the manufacturing industry to move away, the decision-making level obviously wants to guide it into beneficial "collective behavior".

Wang Zixian, deputy director of the Policy Research Office of the Ministry of Commerce, said that as a big country with huge regional differences and highly diversified industries, China can not ignore the export of labor-intensive products, which involves employment and people's livelihood.

The reporter learned that Shaanxi and Guangdong are conducting in-depth consultations on the issue of industrial pfer. Guangdong's industrial pfer is not only a resource industry, but also a real estate development and manufacturing industry with regional advantages.

In many central and western provinces and municipalities, the policy of supporting the pfer of southeast industries has been formulated.