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    Wenzhou's Manufacturing Industry Is Struggling To Make Progress.

    2008/10/31 0:00:00 63

    For millions of Chinese small and medium-sized enterprises, 2008 is a "ridge".

    Under the current international and domestic economic situation of crisis and complexity, how will Wenzhou respond to the "private economy vane"?

       

    In the face of difficulties, Wenzhou launched the "policy combination".

    It was once widely rumored that 30 SMEs in Wenzhou had shut down nearly half of the year, half of them stopped and went bankrupt in recent 20% years.

    According to a more authoritative statistical data of the Wenzhou municipal government, by the end of August, Wenzhou's enterprises were closed or shut down by about 8%.

    In the first half of this year, Wenzhou's industrial output value above Designated Size reached more than 2500 enterprises, accounting for about 40% of the total number of enterprises.

    "The total number of SMEs in Wenzhou is 14, and according to the data I know, more than 4% of Wenzhou's enterprises failed last year, and this year it may rise to 5.9%."

    A local official revealed.

    In this regard, Li Xiongwei, director of the Wenzhou economic and Trade Commission's comprehensive economic operation Department, said that 5.9% should not be achieved, but how much is the inconvenient announcement, "in fact, it is difficult to accurately count the data in this area. Many Wenzhou people can't go on with this company, they will open another one, and the original one will not cancel it."

    "Facing economic difficulties, tackling difficulties and tackling difficulties is not only a matter of enterprises, but also a matter of the Party committee and the government.

    We must do everything possible to create favorable conditions for enterprise development and expand development space.

    Shao Zhanwei, Secretary of Wenzhou Municipal Committee, said.

    An unprecedented large-scale government support campaign has been launched in Wenzhou.

    "Every cadre has to go out of business, every enterprise needs to see cadres". Since the beginning of this year, the leaders of Wenzhou have taken the lead, and the enterprises have gone deep into the investigation.

    In order to make difficult enterprises move forward lightly, the Wenzhou municipal government has formulated a series of measures to reduce the operating costs of small and medium-sized enterprises:

    The discount rate for technical pformation of industrial enterprises increased by two percentage points from 3% to 8% in the past.

    For the traditional export enterprises, the temporary loss but the order can be reduced or even exempt from the second half of the year.

    The leading enterprises and small and medium sized enterprises that are relatively difficult to operate can be regularly reduced or exempted from land use tax through declaration and approval.

    The municipal finance arranges a special fund of 25 million yuan for discount of the working capital of leading enterprises, high-quality export enterprises and growing small and medium-sized enterprises, which are currently facing difficulties, but have good prospects for development.

    ...

    "This is no doubt a timely rain," said Zhou Dewen, President of the Wenzhou SME Development Association. "The central government is supporting the policy on the plight of the manufacturing industry, and the local government has helped in the practical difficulties, and the enterprises themselves have overcome it.

    The most important thing is the help of local governments.

       

    Realizing "rebirth of bath fires" in innovation and pformation

    As a representative base of "made in China", Wenzhou has produced 10% of the country's clothing, 20% of shoes, 60% of shavers, 65% of locks, 80% of glasses, 90% of metal casing lighters and 90% of watercolor pens. Wenzhou's low-voltage electrical appliances, hardware products, automobile and motorcycle accessories also play an important role in China.

    However, after the Spring Festival this year, the once booming Wenzhou manufacturing plant seems to have been shut down overnight. All the streets and alleys are information about the pfer and rental of the factory buildings.

    A crisis seems to be spreading rapidly in all areas of Wenzhou's manufacturing industry.

    Lighter is a microcosm of "Wenzhou's manufacturing crisis".

    Many lighters in Wenzhou fail to withstand the enormous pressure brought by the rising price of raw materials, and have closed down eight or nine in the past year, from five hundred or six hundred to less than one hundred now.

    However, Zhou Dahu, President of the Wenzhou smoking appliances industry association, said that although the number of lighters in Wenzhou has been reduced a lot, the output of the lighters has not been less than that of the past. The metal shell lighters still occupy eighty or ninety of the global market share.

    A group of data from Wenzhou customs showed that in the first half of this year, Wenzhou exported 80 million 310 thousand lighters, and the value of export delivery was US $48 million 930 thousand, an increase of 20.02% over the same period last year. The average price of export lighters was 0.58 US dollars per year, up 22.37% over the same period last year.

    Xu Jiping, executive vice mayor of Wenzhou, said that quite a number of small and medium-sized enterprises had ceased production, but these enterprises were mostly active in stopping production or reducing the scale of production. Only a small part of the passive bankruptcy occurred, some of them were "closed the glasses factory and started selling glasses."

    Moreover, most of the small and medium enterprises shutting down and shutting down are low grade products and "shuffled" in the competition.

    The purpose of the Wenzhou municipal government's introduction of a series of "combined boxing" is not to let all "unable to sustain" enterprises to go on.

    The government's position is still "limited government", "government enterprise linkage" is to guide enterprises to upgrade and pform, and change the way of growth.

    In this sense, the current predicament is also an opportunity for Wenzhou's small and medium-sized enterprises to upgrade their industries.

    More and more private enterprises, supported by policies, rely on traditional industries to focus on accelerating brand innovation and tap the potential of enterprise development from improving product quality.

    According to statistics, as of the end of June, the city of Wenzhou has 113 well-known trademarks, an increase of 70 over the same period.

       

    Multi pronged approach to actively crack down on "financing difficulties"

    Financing is the biggest bottleneck for the development of small and medium-sized enterprises.

    Through frequent new moves in the financial industry, Wenzhou has made equity pledge and fixed assets become "live money", and actively experimenting with small loan companies to form a multi-level, three-dimensional Wenzhou style financial system.

    In June this year, the Interim Measures for the registration of shares in Zhejiang Province, and the measures for the registration of shares in Wenzhou limited liability company ("Trial Implementation)" activated the "static asset", the stock ownership that had always been ignored, in one move.

    The equity in the hands can be mortgaged to obtain loans, which is a "way out" for the lack of funds for many small and medium-sized enterprises.

    At the same time, the Wenzhou Housing Authority has also issued three policies, namely collective land, factory mortgage, mortgage loan and mortgage pfer. These three policy innovations have provided a new way to ease the financing difficulties of enterprises.

    Wenzhou's private capital with 600 billion yuan of private capital has been very active.

    The pilot of small loan companies has become an attempt to guide private capital to support the development of small and medium-sized enterprises in Wenzhou.

    The pilot companies of small loan companies are mostly large manufacturing enterprises.

    Li Yuesheng, chairman of Wenzhou Lucheng small loan company and chairman of Kaiyuan Group, thinks that the small loan companies can also play the role of "two birds with one stone", that is, those large enterprises that are well funded have helped small businesses to overcome difficulties while nurturing the growth of small businesses, not only to provide them with funds, but also to impart their experience in management and management to them.

    Big state-owned banks are also unwilling to lag behind.

    In September 16th, the Wenzhou branch of ICBC launched a small business loan innovation product designed to help small businesses tide over their difficulties.

    The bank should be president of Guoguang. In the four months of the year, ICBC Wenzhou branch will adjust the credit policy timely and increase the credit intensity of large and small enterprises.

    This year, the bank will also increase the special credit support of 2 billion yuan to support the development of local small businesses.

    According to the data of Wenzhou central sub branch of the people's Bank of China, the balance of RMB loans reached 301 billion 205 million yuan in the end of 6, an increase of 14.9% over the same period last year.

    Since July, the growth rate of new loans in Wenzhou city has been rebounded in the month, and the growth rate in August and September is still rising.

       

    "Headwinds" encourage enterprises to "go out"

    The black and blind island of China and Russia has just recovered for less than a week. Several foreign economic and trade officials in Wenzhou have embarked on the new eastern territory of China under the leadership of a deputy mayor.

    Su Xiangqing, director of the Wenzhou Municipal Bureau of foreign trade and economic cooperation, believes that the development of foreign trade and economic cooperation must take effective measures in a timely manner to speed up the pace of "going global".

    Many enterprises in Wenzhou are afraid to pick up orders from overseas customers because of "difficult export". "No order is slow, and order is a death row", resulting in a decline in export growth.

    In order to promote the steady growth of the export of SMEs, Wenzhou has accelerated the export tax rebate progress, and increased the incentives for export growth enterprises to help exporters tide over the difficulties.

    At the beginning of August, Wenzhou also launched some supporting measures to encourage open economic development in Wenzhou in 2008. For the first time, Wenzhou established an incentive fund for the development of open economy, and the total local government allocated 130 million yuan to support and guide the development of open enterprises.

    In late August, the Wenzhou foreign trade and economic cooperation delegation formally signed a cooperation intention with the Uzbekistan Leather Association and the government of the state of the state of the river. The government and enterprises jointly set up a new platform for Wenzhou private enterprises to expand the Central Asian market.

    According to the agreement reached between the two sides, Wenzhou private enterprises will set up a comprehensive industrial complex in Uzbekistan, which will be located in the state of Wenzhou, and will import advanced light industry technology into Uzbekistan. At the same time, we will cooperate to develop the rich resources of the local area and aim at the emerging market of "five Central Asian countries".

    In the first half of this year alone, Wenzhou has 32 new overseas institutions, with a total investment of US $39 million 360 thousand, an increase of 80% over the same period last year, which has become a bright spot.

    It is also understood that in order to help enterprises to "go out" better, Wenzhou is studying guidance documents, establishing and improving the "going out" service system, support system, promotion system, management system and risk prevention system, and strive to cultivate a number of Wenzhou local multinationals after 5 to 10 years of efforts.

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