How To Deal With Vietnam'S Economic Crisis In Zhejiang

Manufacturing industries in Southeast Asia such as India, Thailand, Vietnam and other countries are "threatening", and Zhejiang manufacturing, which has played an important role in the "manufacturing" and even the global market competition and manufacturing chain, is facing a rising RMB exchange rate. Some commodities have abolished the export tax rebate policy, and some commodities have added tariffs. The prices of raw materials, pportation, energy and land are increasing, making the manufacturing enterprises' operating costs steadily rising. CPI has repeatedly climbed up, the labor contract law has been implemented, and the cost of labor has increased, and so on.

The dilemma of manufacturing industry in Zhejiang is gradually emerging. Is the competitiveness of Zhejiang manufacturing being weakened?

How does Zhejiang manufacturing enterprise occupy a certain proportion in the global supply chain to break through the difficult position and enhance its competitiveness?

In yesterday's opening of the Zhejiang conference and Expo, Zhejiang enterprises responded in their own way.

The quality of "made in Zhejiang" is excellent.

Peter from France thumbs his thumbs, and then he talks, "but the price is also very important."

Yesterday, Peter wandered for a long time in the booth of a Ningbo enterprise, choosing goods and bargaining, because the number after the decimal point and several rounds of "you come to me" with the manufacturer, finally, some hesitated accepted the offer of the manufacturer, and signed the preliminary intention purchase order.

At this year's Zhejiang fair and the Expo, the group of merchants who love the "made in Zhejiang" product, such as Peter, but do not love the "Zhejiang made" offer surges.

1. affected by price increases

Many overseas customers pfer orders.

Now businessmen from abroad are more cautious about purchasing "made in Zhejiang".

Yesterday, Mr. Cai Heyi from Malaysia turned around several times in the food exhibition area to find partners.

In Malaysia, his company mainly produces canned food, candy biscuits and tourist food. This time, my friend introduced the exhibition in Ningbo, and he specifically came to find suitable partners.

"I attend every year's Canton Fair. It's the first time to attend the Expo in Ningbo."

This time he came to Ningbo, he planned to stay for three days, so that he could sell three goods.

"We have already cooperated with many enterprises in Zhejiang and even Ningbo."

Mr. Cai showed his thick stack of business cards to reporters, including canned businesses in Huangyan and seafood producers in Xiangshan.

"The ingredients of the instant noodle were purchased from China, because the price here is lower than that in other countries, but now the price is rising, and some raw materials are 30% higher than others."

Mr. Cai said, for example, "monosodium glutamate we import from Vietnam is US $1000 / ton, and now the price in China is $1300 / ton."

Besides ingredients, he is still exploring the flour supply market.

"Tariffs 25 Ba Xian (Malaysia currency), value-added tax 13 Ba Xian, but the overall price is cheaper than other countries.

We will consider buying goods from China in the second half. "

Mr. Cai said frankly that due to changes in supply prices, their current supply channels have been pferred to Philippines, Thailand and Vietnam.

2. while causing customer churn

But businesses have to raise prices.

Two overseas businessmen from Morocco took a half day's dismantling of the handle of the pan in the booth of Jinxiang kitchen utensils.

They are old customers of Golden Elephant kitchenware. They buy Kitchenware every year in Zhejiang.

"Our products are 100% exported."

As the general manager of golden elephant, Wang Cheng, said, the rise of the RMB exchange rate also brought great pressure to their export business.

Compared with last year, the price of golden elephant has increased by 15% to 20%.

"Now the tax rebate rate is down, and the price of raw materials has gone up too fast.

Old customers can understand, but it is difficult to develop new customers. "

A salesperson of the company said.

Dongyang Ocean Water Sports Articles Co., Ltd. placed a number of assault boats on the open space between the pavilions, which attracted many businessmen to come to inquire, but many merchants left after regrettable inquiry.

"It is normal that they can not accept the price increase."

Lu Zhihui, who is responsible for the company, pointed to a large assault boat. Last year, the offer was only 6500 yuan, and now it has risen to 7000 yuan.

At present, as the price of raw materials such as assault boat PVC and other plastic raw materials rises all the way, the rise of RMB settlement rate also brings great pressure.

Quotations rose 7% to 8% over the second half of last year.

Lu Zhihui said frankly that their orders have been reduced by 15% due to the increase in quoted prices.

In order to avoid the risk of RMB exchange rate, Lu Zhihui has no longer settled in US dollars. "Since April this year, we have begun to settle in euros."

"In fact, the knitting industry is no longer profitable, mainly relying on the profits of other industries to feed."

A business manager of a knitting enterprise, who did not want to be named, told reporters.

At the Zhejiang harmony Expo, most of the export manufacturers interviewed expressed the same "confusion": "the price raising is necessary, but it also caused the loss of customers."

A logistics provider, who declined to be named, said that this year's export orders decreased by a year earlier compared with the same period last year, due to the impact of the export environment.

3. expand import trade, provide additional services, and pfer industries.

Zhejiang and enterprises have actively sought solutions.

Although the "made in Zhejiang" is raising the price, many businessmen still choose "made in Zhejiang", which is closely related to the overall competitive advantage of "Zhejiang manufacturing".

"Compared with other places, the supporting services of Zhejiang enterprises are perfect, such as purchasing garments, in addition to the enterprises that make clothes, we can find matching sets of embroidery, printing and dyeing related processing enterprises that provide a complete set of services."

Shu Yueping, the general manager, has spoken of the feelings of many manufacturing enterprises. At the same time, compared with other Southeast Asian countries, China's political situation is more stable, and the environment of reform and opening up is also more mature.

In fact, at present, a lot of "made in Zhejiang" also enhance their competitive advantages by pferring export direction, providing quality services and pferring industries.

Some logistics companies have indicated that some export enterprises have shifted their export direction from original European and American markets to South Africa, the Middle East, Asia and other countries and regions.

"They have not yet realized the benefits of import trade!"

Shu Yueping said, "a lot of enterprises are troubled by the formalities of importing, and think that the pressure of imports is actually not as realistic as expected."

This year, Guangzhou group is importing paper materials from Korea, Japan and Indonesia. The total import trade has increased by 30%, and has brought a lot of profits to the enterprises.

"Their prices and quality are relatively stable, the foundation of cooperation is good, and they are set up in large cities such as Shanghai and Tianjin, and the service system is good."

Speaking of the advantages of import business, Shu Yueping was full of praise.

At the same time, the enterprise also displayed "human sentiment card".

"If we are willing to quote high prices, we will help them find other cooperative enterprises free of charge and help him inspect the goods."

Shu Yueping said that customers can still be friends if they are not customers. This open concept also keeps many customers who want to leave.

Data from the Guangzhou group show that after more than 15% of the price adjustment, it is still understood by 70% of customers, which depends on communicating with customers earlier.

The Ningbo Fuchun International Trade Co., Ltd., originally engaged in the garment industry, has begun to shift its industry from the impact of the big environment. It has begun to enter the garment processing industry and enter the handicraft industry and the commodity industry with higher profit margins.

This time they brought exhibitions of daily necessities and crafts to find new customers for these products.

In the home textile and clothing exhibition area, reporters also saw several large enterprises in Xiangshan knitting industry, including giant hawks, Hengda and so on.

During the interview, it was learned that, thanks to the appreciation of the renminbi, the rise in labor costs and the reduction of export tax rebates, some knitting enterprises have begun to part of their efforts to invest in real estate, shipbuilding and other industries.

Expert weapon

Lay up sales network and grasp pricing power.

Chu Jiakang, special researcher of Ningbo Municipal Government Economic Research Center:

"Made in Zhejiang" once occupied a large number of markets at home and abroad, but in recent years, due to the export policy, operating costs, and the RMB exchange rate, many manufacturing enterprises' export business is difficult to continue.

But the competitive advantage of "made in Zhejiang" is still quite obvious. Enterprises can further enhance their competitive advantages through some ways.

I think it is the "hard truth" to master the pricing power.

Zhejiang enterprises should consider laying their own sales network in the world's important sales market with the permission of their own power.

For a long time, Zhejiang manufacturing relies heavily on foreign buyers to sell their products to a large extent. Although they can avoid certain market risks, they have virtually lost the right to market pricing.

In order to compete against each other, profits are mostly in the hands of buyers. Once the exchange rate changes are very difficult to balance.

At the same time, we should improve the product quality, increase the added value of products, strengthen the exploration of the potential consumption in the domestic market, and avoid international trade friction through foreign factories and industrial pfer. The government, institutions and enterprises should strengthen the research on international trade policy and strengthen the attention and cultivation of the relevant talents.

SMEs should be "supporting roles".

Long Yongtu, Secretary General of Boao forum for Asia:

We should continue to work hard in manufacturing and become an increasingly important "workshop" in economic globalization.

In fact, the wording of "made in China" is not correct. Taking a shirt as an example, the button may be Korean, the design is French, and it is produced in China, and the brand is Italy's.

A product is not pure and pure China.

The concept of "made in China" is not true.

I appreciate Ningbo's (Yuyao) Shun Yu Group's "supporting role" strategy, which is in line with China's national conditions. They find their dominant position and play the best supporting role or the best performers.

The winner of this strategy is Intel.

Intel continues to grow from providing core components to purchasers, and ultimately requiring its buyers to mark their trademarks on products, becoming a part of the well-known brands.

In today's economic globalization, we should take pnational corporations as the carrier to find larger production chains and supply chains, from four streams of supporting roles to "three streams" supporting roles, and then to become "second rate supporting roles".

We should not only become a "supporting actor" but also a "big money". We should rely on the strength of pnational corporations and the development of medium-sized cities to find the most suitable position for them.