Pearl River Delta Manufacturing Industry Faces Cage Replacement Or Upgrading Locally

The heavy rainstorm that has not happened for many years has made Dongguan a manufacturing city in Southern China.

However, after the floods, government officials, who were busy counting their losses, were dumbfounded that they had to spare time to appease the workers who often came to call for justice and recover their employers' Arrears of wages.

Because those "black hearted" bosses ran away overnight after the floods.

Manufacturing industry is in urgent trouble in Shenzhen and Dongguan

In fact, the closure of enterprises in various towns in Dongguan has been going on this year.

For example, the Dongguan Da Ling Shan town, known as "the first town of Chinese furniture export", is said to have closed at least 1/3 furniture enterprises and supporting factories, and the remaining 2/3 has also been narrowed by losses.

The overall situation of the PRD is also not optimistic. Toys, shoemaking, clothing and other industries have suffered the most.

According to the statistics of Guangzhou customs, there were 2428 footwear export enterprises in the Pearl River Delta region in 1~5 this year, a sharp decrease of 2331 compared with the same period last year. Nearly half of the PRD footwear export enterprises have no export performance this year.

In the month of 1~5, 940 million pairs of shoes exported to the Pearl River Delta region were 25.7% lower than the same period last year.

"Every month, the statistics are different, and the days of enterprises are getting worse every day."

Asia Footwear Association Secretary General Li Peng said.

Liu Dabang, chairman of the Hongkong Federation of small and medium enterprises, estimated that by the end of this year, nearly 2 Hong Kong funded enterprises in the PRD will be closed down or the factory will be moved to other areas.

Recent research conducted by the Shenzhen Association of foreign investment enterprises shows that over a dozen factors, such as the low export tax rebate rate, the appreciation of the renminbi, the continuous improvement of the minimum wage, the rising price of raw materials, the adjustment of processing trade policies, the integration of the two taxes, the implementation of the labor contract law, the high standard of social security and labor protection, and the improvement of environmental protection requirements, the shortage of labor force and the shortage of hydropower, have led to a large number of manufacturing enterprises in trouble.

In the Pearl River Delta region, which is mainly in the external oriented manufacturing industry, this enterprise crisis has had adverse effects on the local economy.

It is understood that in the first half of this year, Shenzhen's export volume has declined for 4 consecutive months, and the total industrial output value of Shenzhen has also declined.

A person with knowledge of the matter said that 30% of the local enterprises with intention to move abroad now will be hit hard if they are gone.

In the industrial pformation and upgrading stage, Dongguan's economic growth rate has also slowed down in recent years.

Dongguan government officials admit that if Dongguan's industrial pformation is successful, it will usher in an economic leap. If the pformation fails, economic stagnation or even negative growth will likely occur.

Looking at the current trend, we do not rule out a worrying situation next year.

"Cage changing birds" or "upgrading locally"?

In July 4th, Xi Jinping, member of the Standing Committee of the Political Bureau of the CPC Central Committee and vice president of the state, visited Shenzhen, Dongguan and other places before going to Hong Kong to check the preparations for the Olympic equestrian competition. The purpose was to "understand the specific difficulties faced by Guangdong, Hong Kong and Macao cooperation and Hong Kong enterprises".

This is not only a coincidence of time with Premier Wen Jiabao and vice premier Li Keqiang who went to the Yangtze River Delta to investigate and study recently.

The most serious disaster in Dongguan is how to cope with the crisis of a large number of enterprises.

"We don't feel any new policy support. The government's idea is very clear, that is," cage changing birds ".

Daling mountain town, a furniture hardware accessories factory boss told reporters.

The general idea of the Dongguan municipal government's "changing the cage and changing birds" is to pform the development mode, adjust and optimize the industrial structure, upgrade the industrial level, shift the labor-intensive and low-end industries, make room for development, and attract and undertake high-end industries and talents.

In May 27th this year, the Dongguan municipal government issued a policy discussion draft, announcing that the new (East) wandering people should go back to their hometown to start their own business with the economic means of raising rental housing and operating costs.

There was a lot of controversy at that time.

In July 3rd, the final version of the document was released, and the "pfer of low quality labor force" in the original text was quietly deleted.

At present, the Dongguan municipal government mainly hopes for Songshan Lake Science and Technology Industrial Park, Humen port and the eastern ecological park, so as to realize its industrial pformation and upgrading plan.

Among them, Songshan Lake Science and Technology Park, located in the middle section of Guangzhou, Dongguan, Shenzhen and Hong Kong Economic Corridor, has a planned area of 72 square kilometers. In 2007, it was included in the Ministry of science and technology's "pilot project of the national Torch Innovation and entrepreneurship Park jointly constructed by the Ministry and the Ministry of science and technology". The software industry will be fully developed according to the plan, and the processing, manufacturing and chemical enterprises will be excluded.

Dongguan's Ma Chung town has built a new eco industrial park with an area of 1500 mu. It plans to move the polluting enterprises such as bleaching and dyeing, electroplating and other polluting industries in the town, and the government will make unified supervision and centralized treatment of sewage.

The advantage of doing this is to retain the enterprise and ensure the government's financial revenue, which is an example of the town government encouraging the enterprise to change in place.

In July 3rd, the executive meeting of the Shenzhen municipal government deliberated and approved the "measures to optimize government services to promote industrial development". It plans to spend at least 2 billion yuan in financial expenditure to help enterprises overcome the painful period of pformation and upgrading.

The 28 measures proposed in this document are mainly based on the results of the survey conducted by the Shenzhen industrial and trade research service group in May this year, focusing on more than 200 key enterprises. The key points include providing guarantee arrangements and financing facilities to solve the most pressing financial needs of enterprises.

It is understood that the Shenzhen municipal government has merged traditional industries into 9 categories, including clothing, watches and clocks, jewelry, furniture, printing, glasses, toys and so on, and plans to build corresponding industrial bases.

"Unlike other places, Shenzhen has never intended to drive away traditional industries because they account for half of Shenzhen's economy."

Wang Chuanliu, Deputy Secretary General of Shenzhen Association of foreign investment enterprises, stressed: "the government's plan is to set up a number of industrial bases, and leave all the core links of these enterprises' headquarters, R & D, design, sales and settlement in Shenzhen."