Foreign Trade Enterprises Such As Shoemaking In Wenzhou Are Facing Unprecedented Difficulties.

Import and export volume declined sharply due to price rise of raw materials, adjustment of tax rebate policy and adjustment of exchange rate.

Since the beginning of this year, Wenzhou's foreign trade, which has always been strong in import and export, is facing unprecedented challenges due to factors such as price rise of raw materials, adjustment of export tax rebate policy, various costs and exchange rate adjustment.

According to a material provided by the Wenzhou Municipal Development and Reform Commission, the total import and export volume of the city in the 1-4 months of this year was 4 billion 170 million US dollars, of which 3 billion 400 million US dollars were exported and 770 million US dollars were imported. The three indexes of import and export, export and import were all lower than the average level of the whole country and the whole province, which were lower than the 5.7, 0.5 and 18.3 percentage points of the whole country, which were lower than 6.2, 2.9 and 17.8 percentage points of the whole province.

Compared with other cities in Zhejiang, the size of Wenzhou's foreign trade has dropped to sixth place, and the growth rate of exports has ranked third in the whole province, and the increase in imports is the last second.

Judging from the operation of 1-4 months, the open economy in Wenzhou has achieved steady growth. However, due to the intensification of international economic fluctuations and the tightening of domestic macro-control, the open economy has been attacked by "cold current", especially in foreign trade.

In the month of 1-2, the total export volume of the city was only 1 billion 782 million US dollars, up 6.4% from the same period last year.

Although the figures for 3 and April show that exports have rebounded, the annual growth rate will be down compared with last year.

According to investigation and analysis by relevant departments, the increase in import and export in Wenzhou has dropped considerably, mainly for the following reasons:

First, due to the adverse effects of RMB appreciation, export tax rebate adjustment, raw material price increase and labor cost rising, the superposition effect appears, and the profit margins of export enterprises are less and less.

The appreciation of RMB is 1%, the profit of garment industry is reduced by 4%, and the average profit rate of the whole textile and garment industry is only 3.3% to 3.4%.

General orders are delivered after three months, but three months later, it is difficult to determine the price, and it is difficult for customers to accept the factors that include the appreciation of the renminbi in the future.

This year, the renminbi has risen by nearly 5%, which has further reduced the profit margins of foreign trade enterprises, so that some foreign trade enterprises in Wenzhou have been unable to digest and increase the difficulty of performance of enterprises.

Two, the export products of Wenzhou are mainly light industrial products such as footwear and clothing, which are labor-intensive products with low added value and low technology content. Most of them are OEM production, and export of their own brand products is scarce. It can be said that "less value added and less famous brands" are the short legs of Wenzhou's export products.

The average profit of garment production enterprises in OEM is only 2% to 3%. Affected by unfavorable factors such as land cost and raw material price increase, RMB exchange rate appreciation and export tax rebate rate reduction, many small and medium-sized export enterprises in Wenzhou are hard to sustain. Some small and medium-sized garment manufacturers in Ouhai have gone bankrupt.

Three, as part of the foreign trade enterprises in Wenzhou become bigger and stronger, the land resources are urgently needed to expand the scale of production. Due to the scarcity of land resources in Wenzhou, some foreign trade enterprises are forced to move their production bases to the mainland, and the outflow of enterprises is serious.

It is understood that more than a dozen enterprises in Lucheng District moved to Gaochun, Jiangsu.

In the past, enterprises were only part of production or operation, but now the whole enterprise moved out.

The relocation of enterprises has a great impact on Wenzhou's export.

The four is to further increase the operating cost of foreign trade enterprises from the new labor contract law implemented in January 1, 2008.

The new labor law has greatly adjusted the rights and obligations of the employers and employees, and tilted more to the workers. This brings great pressure to the foreign trade enterprises in China, which are mainly labor-intensive industries and rely on low labor costs to participate in international competition. The new labor law has raised about 10% of the labor cost of the enterprises.

Nowadays, the new labor law stipulates that the labor force should pay the social security expenses. At present, the employees of the enterprises are generally in a temporary sense and unwilling to pay the social security costs. If the owners of small and medium-sized businesses undertake the business, if the business volume is not large enough, the enterprises will surely lose money, especially those who are producing stronger seasonal businesses.

It is understood that the rent of Ouhai Qu Xi factory building rents from last year 12-15 yuan per square metre to 8 yuan per square meter, the vacancy rate is also very high.

The five reason is that the European Union and the United States are the top two markets of Wenzhou's exports. This year, under the influence of the subprime crisis, the global economic growth represented by the United States has obviously slowed down, and some buyers are bankrupt or losing money, unable to pay the loan.

On the one hand, the bankrupt or loss making enterprises are unable to pay the goods and refuse to pay. On the other hand, the surviving enterprises will reduce the amount of procurement to China and reduce their imports in order to pass the crisis, which will have a greater impact on the export of light industry products in Wenzhou.

Six, many small and medium-sized private enterprises are becoming the main body of Wenzhou's foreign trade team.

According to statistics, at present, the average import and export volume of each enterprise in Wenzhou is only millions of dollars.

The smaller scale of enterprises often means higher operating costs, lower financing capacity and greater operational risk. Under the condition of lacking external support, the initiation and development of imports are more difficult.

The development of general trade and the backward processing trade are another distinctive feature of Wenzhou's foreign trade.

Since the processing trade is basically relying on foreign raw and auxiliary materials to achieve "great progress", it is often shown as a large amount of import and export and smaller trade surplus.

It is believed that the current situation of international and domestic economic development and the overlay effect of various factors affecting Wenzhou's foreign trade are gradually emerging. In the face of severe challenges, the government should give policy support, encourage enterprises to optimize the structure of export products, improve the technological content and added value of Wenzhou's export products, encourage enterprises to expand imports, and promote the upgrading and optimization of Wenzhou's industries; efforts should be made to lighten the burden of export enterprises, reduce or reduce part of the fees, ease the financing tension of small and medium-sized foreign trade enterprises, and make unified understanding of foreign-related administrative departments, and strengthen services so as to help Wenzhou's foreign trade enterprises get out of difficulties and promote the sustainable development of foreign trade.