Wenzhou Economic And Trade Commission: Leather Semi And Medium-Sized Enterprises Stop Work And Half Stop Work Is Aggravating

The most intuitive and startling manifestation of the plight of SMEs in Wenzhou is the widespread downtime, half stoppage and closure.

"The situation is becoming more serious now, and the plight of SMEs in Wenzhou is intensifying."

On the afternoon of July 28th, in the office of the Wenzhou administration center building, Jiang Zengyao, director of the Wenzhou economic and Trade Commission, gazed at the storm outside the window, telling reporters.

This is the first time that the head of Wenzhou's small and medium-sized enterprises in charge of the field has received an exclusive interview with foreign correspondents. It is also the first time that Wenzhou government officials have acknowledged that the existing environment of SMEs in Wenzhou is still deteriorating.

The reporter obtained the latest survey report from Jiang Zengyao in July 16th.

The report, which is called "the pressure of small and medium enterprises on the decline in industrial production", is reported in the first half of the year. According to the survey conducted by the Wenzhou Municipal Economic and Trade Commission in July, 15521 small and medium-sized enterprises in 31 industrial towns and development zones of the whole city found that the number of enterprises stopping or semi shutting down was 1009, accounting for 6.5% of the number of enterprises surveyed, and the number of bankrupt enterprises reached 250, accounting for 1.6%.

The total number of enterprises stoppage, half stoppage and closure is 1259, accounting for 8.1% of the total survey, compared with 6.3% in 1-4 months, and has risen 2.1% in less than 3 months.

This official figure is considered "too conservative" by many industry associations and small and medium business owners.

Zhou Dahu, chairman of Wenzhou smoking appliances industry association and chairman of Zhejiang tiger cigarette lighter Co., Ltd., told reporters that the number of lighters enterprises in Wenzhou has dropped to more than 70 from more than 1000 in 2006 and 2007.

According to a business owner who supplied the shell and electroplating upstream service to lighters, the more than 70 companies can really guarantee that the whole year will start at no more than 30.

According to the Wenzhou shoe leather industry association, there are still 2600 footwear enterprises in existence.

In 2005, the media reported that there were nearly 4000 shoe companies in Wenzhou and about 400000 employees.

On the other hand, Qiaotou town, called "the town of buttons and zippers", has been reduced from more than 560 in its heyday to more than 50.

Zhou Dewen, President of Wenzhou SME Development Association, told reporters that 20% of the 300 thousand SMEs in Wenzhou stopped and half stopped.

The data from the economic and Trade Commission's report also proves that the industrial output value of Wenzhou enterprises is also not optimistic.

Wenzhou's industrial output value in the first half of this year was 227 billion 782 million yuan, an increase of 13% over the same period last year, an increase of 6.4% over the same period.

Of the 33 industries in the city, 24 industries tend to receded, while shoe leather, chemical fiber, beverage and other industries appeared negative growth in June.

"Throughout the first half of the year, Wenzhou's industry, especially the labor-intensive light industry dominated by small and medium-sized enterprises, has been in a doldrums, so far there has been no steady trend."

Jiang Zengyao solemnly told reporters.