North To "Food" Pearl River Delta Enterprises To Southeast Asia

In recent years, with the increase of production costs of labor, land and electricity and the change of national industrial policies, coupled with the problems of infrastructural facilities and inadequate industrial support in the central and western regions of China, a new trend of industrial pfer in the Pearl River Delta region has shifted from the past to the northern inland areas and to the southeast Vietnam, Indonesia, Singapore and other Southeast Asian countries.

Experts believe that in the face of the trend of "Southward" pfer of PRD industries, it is imperative to take measures such as boosting the domestic demand market, improving industrial matching and strengthening regional cooperation, so as to "retain" eastern enterprises so as to better optimize China's industrial layout and enhance regional comprehensive strength.

The tightening of macro policies has made the PRD enterprises face many restrictive factors in the process of pferring to the mainland.

"At present, the state is more strict in land management, project management and environmental protection, and the policy support for the smooth implementation of industrial pfer in the western region is not obvious, resulting in difficulties in the implementation of some industrial pfer projects."

Shen Hualin, an associate professor of the Guangxi Zhuang Autonomous Region Party school, said.

As the "bridgehead" of China ASEAN cooperation, Nanning has attracted a large number of Taiwanese businessmen's attention in recent years.

Some Taiwanese businessmen are right to say that if enterprises can provide land and labor protection, enterprises will not settle down, but Nanning's limited land use quota can not meet the urgent needs of industrial pfer.

"Since last year, China's policies on export rebates, processing trade and other policies have been adjusted frequently, and the policy environment has undergone great changes, which has a great impact on the processing trade industry which relies mainly on exports.

With regard to the idea of attracting foreign capital to invest in the central and western regions, many foreign enterprises worry that the state will further increase its adjustment to the foreign trade policy.

Li Peng, vice president of Guangxi University business school, said.

In addition, in recent years, the cost of labor and land in inland provinces has increased, as well as factors such as weak economic foundation, inadequate matching and inadequate guidance in the industrial pfer of the central and western regions, which also restrict the pfer of the PRD industry to the mainland.

There are many indications that many eastern enterprises have gone to Vietnam and Burma and other Southeast Asian countries to investigate and even build factories in order to avoid investment risks.

Data show that Vietnam has become the fastest growing area of Taiwanese investment since mainland China. By 2005, Taiwanese businessmen had invested nearly 8 billion US dollars in Vietnam and ranked first overseas in Vietnam. In the past two or three years, this trend will only increase.

When the domestic industry pfer is confronted with the bottleneck of the system, the advantages of Vietnam and other Southeast Asian countries in land, labor prices and financial services are highlighted.

Cao Yunhua, director of the Institute of Southeast Asian Studies, Jinan University, said: first of all, compared with China, the price advantage of Southeast Asian labor force is more prominent, and the superiority of land resources is more prominent.

"My colleagues and I found in Vietnam that many of the enterprises that were originally in Dongguan, Guangdong have been pferred, and their motives are very simple. The cost of labor in Vietnam is about $100, while in Dongguan, the cost of labor is high, and it is difficult to recruit people. The cost of other water, electricity and land is greatly improved. Entrepreneurs will certainly choose to leave."

Cao Yunhua said.

Low logistics cost is another important advantage of Southeast Asian countries.

According to experts, oil prices exceed 100 US dollars, which will increase the cost of logistics enterprises by 15% to 20%.

Compared with the cost of shipping, both highway pportation and inland river shipping will greatly increase the logistics cost.

Seaports cities in Southeast Asia are obviously more advantageous than those in the central and western regions of China.

Judging from the foreign trade situation, although the central and western regions of China also provide favorable conditions for pfer enterprises, the export of Chinese products has been suppressed.

Products exported from China are often under the pressure of anti-dumping from the European Union and the United States, while those of Southeast Asian countries which are developing at a low level are less concerned.

In addition, in recent years, Southeast Asian countries represented by Vietnam have also used various opportunities to issue investment invitations to Chinese enterprises, and have issued a series of preferential policies in land, taxation, finance and so on, and even the government has directly supported the listing of some promising enterprises.

In view of the new trend of Eastern processing and manufacturing enterprises to pfer to Southeast Asian countries, some experts believe that the top priority is to "retain" the eastern enterprises from five aspects.

One is to start the domestic demand market.

Experts point out that the advantages of production cost are not the weapons that China's central and western regions compete with Southeast Asia. Our real advantage is China's domestic demand market.

Such as Xinjiang, its unique geographical location has formed a huge potential for China, West and South Asia, as well as Russia's consumer market and its purchasing power.

As the "bridgehead" of China ASEAN cooperation and the node connecting China's eastern, central and western regions, Guangxi is also faced with the ASEAN market and the vast southwest hinterland that need further development.

Two is to improve infrastructure and industry supporting construction.

On the one hand, we should further build a three dimensional pportation network.

On the other hand, we should build a supporting industrial chain around the planning and construction of the park.

At the same time, we should strengthen training and introduction of workers and management personnel.

Three, we should strengthen regional cooperation, optimize industrial layout and avoid vicious competition.

Shen Hualin said that it is necessary to formulate an economic integration linkage policy, break the administrative barriers, market barriers and institutional barriers between provinces, and formulate regional integration policies including financial pport, market integration, information co building platform and free flow of talents.

At the same time, the establishment of a reasonable profit distribution system and binding cooperation agreements will help to minimize the overall cost of enterprises in the region and optimize the allocation of resources.

The four is to improve the soft environment of investment through mechanism innovation.

Cao Yunhua believes that in the face of the reality of capital profits and profits, all local governments need to improve their service level and attract enterprises to invest and set up factories.

In addition, the government should open government affairs, enforce laws fairly, improve efficiency and provide quality services to enterprises.

The five is to introduce corresponding preferential policies to encourage enterprises to realize domestic pfer.

At present, Southeast Asian countries have adopted preferential measures to attract processing and manufacturing enterprises. Our country also needs to introduce corresponding measures in land use and taxation, so as to encourage enterprises to realize domestic pfer.

Experts also suggested that the state should appropriately relax the land use targets under the premise of scientific management in the underdeveloped western regions and minority areas.