2010 "Made In Dongguan" Pformation Perspective On The New Development Of Shoemaking Industry

Editor's note: after the three series of reports on changing the way of economic development in Zhuhai, Foshan and Shenzhen, we will turn our attention to Dongguan.

In this tough battle of "pferring mode" this year, if Zhuhai is the representative of the "pfer mode" in the Pearl River Delta area with larger development space, Dongguan can be regarded as a typical example of the "pfer mode" in the Pearl River Delta area where the development is earlier and the available space is not large.

The former is mainly based on the "incremental adjustment structure", while the latter takes the "stock adjustment structure" as the breakthrough point.

Relatively speaking, the difficulty of adjusting the stock structure is even greater. In this sense, the experience of Dongguan's breakthrough is of great significance for the whole province, especially for the Pearl River Delta region.

This newspaper launches a series of reports on the breakthrough of Dongguan breakthrough, introducing the practices and experiences of Dongguan.

When a reporter received the task of collecting financial crisis and manufacturing in China, the first city in the interview area was often Dongguan.

To some extent, the "made in Guangdong" at the core of the Pearl River Delta represents the external impression of "made in China", while the "made in Dongguan" is the epitome of "made in Guangdong".

In the past two years, since the reform and opening up, Dongguan, with an average annual economic growth rate of 18%, has been pushed to the cusp of public opinion because of the serious impact of the international financial crisis.

The pformation of Dongguan has become an indisputable fact. Dongguan's pformation is quite difficult, and it is also a high degree of consensus among all walks of life.

Compared with the noise of the outside world, the center of the storm eye is very calm.

This calm is largely due to the low profile of the parties.

But the information released by political academics is a bit unusual.

In August last year, Wang Yang, member of the Political Bureau of the CPC Central Committee and Secretary of the Guangdong provincial Party committee, once again went to Dongguan to investigate the adjustment of the industrial structure. She happily said, "the pformation and upgrading of Dongguan's industry is beginning to see light."

The positive affirmation of academic circles is even more unexpected.

In April 26th this year, the Chinese Academy of Social Sciences announced the 294 cities' comprehensive competitiveness ranking in 2009. Among them, Dongguan's comprehensive competitiveness ranking rose from eighteenth last year to fifteenth.

In 5 years, Dongguan's rankings soared 31.

In the wake of slower economic growth and even the 5.3% low growth rate seen in more than 30 years last year, in the eyes of the most authoritative social science institutions in the country, Dongguan's comprehensive competitiveness is steadily and rapidly improving. For those who are heroes about GDP growth, it is indeed an unacceptable big contrast.

"Dongguan's economic growth of 5.3% last year is behind the dramatic decline in the number of permanent residents, the closure of a large number of" three noes "enterprises, the doubling of foreign R & D centers and the jump in the number of patents authorized.

Linking these data, it is easy to see that Dongguan is stepping out of the traditional development mode of resource consumption.

I think this is exactly what the Chinese Academy of Social Sciences "has a unique eye for Dongguan". For this contrast, Jiang Ling, a member of the Standing Committee of the Dongguan Municipal Committee and deputy mayor of the Chinese Academy of Sciences, responded in an interview.

Indeed, in the past three years, the traditional Dongguan model is undergoing an unprecedented and profound pformation.

Gene Reengineering:

Patent licensing jumped to second in the province, and Foreign-Funded R & D centers increased 10 times over the past two years, making Dongguan's high-end smile positive.

The dense factory buildings, the endless workshop, the migrant workers from all corners of the country, work day and night in the assembly line.

The hard-earned money they worked overtime day after day had been sent back to their hometown.

And a large number of local farmers live in the provision of land, supply of factories, and then the life of mahjong.

Relying on the rental economy model of building factories, a considerable number of locals have become a class that relies on opening up to share dividends.

This is a typical illustration of the "Dongguan model".

In detail, the "Dongguan model" has the following key genes: Processing Trade and the "three to one supplement" result in the high export-oriented economy and the characteristics of exogenous economy; labor-intensive industries or labor-intensive manufacturing sectors of high and new technology industries are characterized by the lack of value of main, independent technologies and private brands; the high degree of population and environmental resources brought about by the above-mentioned industrial choices; and the development mode of rural economy based on leasing.

All these genes have undergone a tremendous reinvention in recent years.

Strong growth in domestic sales has eased the imbalance between domestic and external demand.

In 2009, the total domestic sales of Dongguan amounted to 154 billion 122 million yuan, accounting for 27.2% of the total domestic and export sales from 29.4% to 29.4%.

The strong momentum of development of private enterprises has overturned the stereotype of Dongguan's "external economy".

In 2009, the endogenous economy accounted for 62.5% of Dongguan's GDP, and its share increased by 4.5 percentage points.

The shutting down of a large number of "three noes" enterprises, a significant reduction in the number of migrant workers, and unprecedented efforts in environmental governance have made Dongguan's highly strained population, resources and environment contradictions more likely to ease.

In 2008, Dongguan ranked ninth in the city's environmental assessment to fourth.

In 2009, the total resident population in Dongguan was reduced by nearly 600 thousand, so that the per capita GDP of the city increased by more than 4.7 percentage points higher than that of GDP.

The most significant change is the "Dongguan made" which has always been the lower end of the smile curve, and is striving to extend to both ends of the curve.

At the back end of the micro line curve, brand marketing, Dongguan promotes the processing trade pformation and upgrading of the system engineering, so that the city has its own brand processing trade enterprises to 988, an increase of 15% over the same period.

And the front line of the smile curve - R & D design is even more amazing.

A landmark figure is: in 2009, the patent licensing volume in Dongguan exceeded 10 thousand, an increase of 59.6%, and the amount of patent applications and authorized amount all ranked second in the province.

This means that Dongguan's patent applications and authorization are second only to Shenzhen, surpassing Guangzhou and Foshan.

In the traditional cognition of Dongguan, how can the amount of patent authorization win the "top spot" of the province?

A group of data can provide a powerful explanation: in 2009, there were 98 Foreign-Funded R & D centers in Dongguan, of which 89 had increased since 2008, which is nearly 10 times the end of 2007. While Dongguan's leaders said that after the special fund guidance of "technology Dongguan" and "processing trade pformation and upgrading", there will be no less than 100 new foreign-funded enterprises in Dongguan this year.

The image of "Dongguan design" and "Dongguan R & D" are vividly portrayed, and the low-end image of "Dongguan made" will be changed radically.

Mechanism Reengineering:

We should speed up the creation of the "three major economic belts" and solve the problem of decentralization of the distribution of productive forces in villages and towns by strengthening the municipal level coordination.

In Dongguan's Houjie North Ring Road in Houjie Town, the European architectural complex of Hongyun shoe material shoe Plaza is particularly eye-catching.

On this 102 thousand and 800 square meter land, there are several labor-intensive enterprises that produce hardware, ceramics and shoe materials.

After the closure of these enterprises, or due to the failure of the contract, or because of the failure of environmental protection, Hongyun company and laoxia village committee established a large integrated shoe and shoe material auxiliary trade center integrating business, office, warehousing, finance, logistics and other supporting services.

The old factory buildings have become the market, the land management efficiency has been greatly improved, and the leading role of the industrial chain is also very obvious.

Many shoe industry supporting businesses have been formed around Hongyun shoe material shoe Plaza.

In the financial crisis, a number of factories in the laoxia village have been closed down. The vacancy rate of the rental factories and houses has been as high as 50%. With the two phase of Hongyun shoe material Plaza, the vacancy rate of the factory buildings has been zero, and the vacancy rate of the rental housing has dropped to 20%.

Today, it has been listed as a "demonstration unit" of Dongguan's "retreat from the second to the third", and this mode of operation has also been named the "Hongyun mode", which is highly valued by Secretary Wang Yang.

In the story of Hongyun, the main body is also intriguing: as a company of fortune, the company is looking for business opportunities, while the laoxia village committee itself is aware of the limitations of the original development mode and is eager to seek pformation.

As a prefecture level city, Dongguan has not set up a county level and a municipality directly under the jurisdiction of 4 streets and 28 towns. This administrative division is only adopted by Zhongshan and Sanya except Dongguan.

The flexible advantage of this system was brought to the top in the 30 years before reform and opening up: cities, towns, villages, groups and individuals moved together with the five wheels. The main body of multipolarization played a positive role in attracting foreign investment, which greatly accelerated the speed of industrialization in rural areas.

However, town, village and group have their own affairs, lack of necessary co-ordination and planning, and also bring about many problems such as extensive management and inefficient use of resources.

Especially in the present stage of vigorously developing modern industry, this kind of separatist village management system has encountered obvious Shackles: the industrial concentration degree is too low, the limited resources can not be integrated when facing the pformation, and the development platform mainly based on towns and villages is also not conducive to attracting senior talents.

Take Hongyun shoe material shoe Plaza as an example. For most villages, the "Hongyun mode" is not easy to copy, because the commercial value of land is low and it is not suitable for developing commerce.

But at the municipal level, this problem can be solved by creating public platforms and coordinating resources.

A more realistic factor is that the traditional mode of development has already formed a specific pattern of interests. In order to pform Dongguan, it is bound to establish a new mechanism of balancing interests, straighten out the three levels of interests distribution and power relations between the city, town and village, so that the three level can benefit from the upgrading of the industry.

For Dongguan, this is a major pformation of the development platform and a reshaping of an interest pattern.

How to adjust and allocate the interests through innovative means to consider the wisdom of Dongguan people.

In order to better promote regional plate restructuring, at the end of last year, Dongguan proposed to accelerate the creation of the "three major economic zones", namely, the Park Economic Belt headed by Songshan Lake, the logistics economic belt based on Humen port, and the commercial and economic belt with the core city as the core.

In order to fundamentally change the mode of "town village" as an economic development platform, it also represents an effort to integrate the overall development of resources in the city.

Liu Zhigeng, Secretary of the Dongguan Municipal Committee of the CPC, said: "we must rely on several major municipal parks to accelerate the development of advanced manufacturing industries, such as electronic information and equipment manufacturing, and strive to build a number of high-end industries, pillar industries, leading projects and headquarters enterprises with strong driving force and perfect industrial chain. This will fundamentally solve the problem of scattered distribution of productive forces left over by Dongguan's rural industrialization in the past 30 years."

But building the three economic belt does not mean sacrificing the interests of the town and village.

Jiang Ling said, "resources are still villages and towns, but through the city to co-ordinate, the concentration will be enhanced, and the benefits will be more obvious."

In the big cake, villages and towns will share the right share. "

All along, the cost of public services such as education, medical care and social security of Dongguan residents is mainly from the town street finance.

Jiang Ling said the next step would be to reduce the share of public service expenditure at the village level.

"With structural adjustment and resource co-ordination, the income at the village level will gradually decrease, and expenditure and burdens will be reduced accordingly.

We will separate the public service functions at the village level and increase the overall strength of public services in the two tier towns.

For example, in the past, it was a three level school running in towns and villages. Now it is run by the city in the senior high school, and is run by the junior middle school and primary school. The village is no longer running, the expenditure burden of the village is reduced, and the quality of education has also been improved.

As a result, the ability of the village level to pform the economic development will be greatly improved.

Urban Regeneration:

From the famous manufacturing city to the city of libraries, the city of museums, the city of square culture and the three cities and one city of the musical capital.

"Dongguan is famous for its fame in manufacturing, but it has not yet generalized the overall image of Dongguan."

Liu Zhigeng's remark gives a deeper dimension to the pformation of Dongguan, namely, the reconstruction of urban functions and urban image.

In December 31st last year, the Dongguan Art Exhibition Center, which was rebuilt from the old factory buildings, opened in the Zhongli Industrial District of Nancheng street. It became the largest market, the highest quality and the most professional collection of art and collectibles in Dongguan.

Zhao Yongchen, general manager of the art exhibition center, told reporters that the old factory area was operated by a toy enterprise for more than 20 years. In 2008, the factory lease contract expired. Nancheng street, according to the idea of "changing the cage and changing birds" and "retreating the two into three", mobilized the enterprises to move the production links out of the field, moved the R & D center to the office buildings in the South Central District, and invested nearly 80 million yuan to redesign and pform the decoration.

Similarly, the old factory is converted into a professional market, but the Dongguan Art Exhibition Center has a distinct position with Hongyun shoe material shoe Plaza.

Standing at the intersection of the art exhibition center, bright colors and colorful architectural appearance, full of creative artistic sculptures and high red lanterns reveal a totally different artistic atmosphere from the industrial area.

Nancheng street party secretary Qian Chao said that in recent years, Nancheng explicitly proposed that the cultural industry should be one of the three pillar industries in Nancheng, and the construction of Dongguan Art Exhibition Center is an important measure to carry out the strategy.

When it comes to the introduction of the project, Qian Chao said: "at that time, it was really contradictory. The 100 acres of land were owned by Nancheng street. It can develop real estate and develop technology enterprises. It can also engage in culture. If you invest in real estate, you can get at least a few hundred million dollars.

But in the end, we are determined to become an art trading center.

We would rather slow down the development of real estate and vigorously develop the cultural industry. "

The choice of Nancheng Street reflects the change of Dongguan's urban development strategy.

From the "Avatar" fever triggered by the high specification Dongguan Yulan Grand Theater and Wanda studios, signing the European tour of the musical drama butterfly, Dongguan is gradually changing the stereotype of Dongguan's "cultural desert" with hard strength and no soft power.

It is reported that Dongguan has designated 2010 as "the overall introduction of Dongguan's urban image", and the "cultural industry" has been written as the ninth pillar industry of Dongguan for the first time in the municipal government's work report.

Dongguan people clearly realize that the pformation of Dongguan is not only an upgrading of the industry, but also an overall upgrading of the urban function and a reorientation of the city's image.

Jiang Ling said that before Dongguan focused on developing relatively low-end manufacturing, the urban strategy was cost control, so "cities are not like cities and towns are not like townships".

When it comes to how to upgrade and pform, enterprises will turn more attention from cost to talents.

To better attract talents and retain talents, we must improve the living environment of the whole city.

Since 2000, Dongguan has invested heavily in urban construction and ecological environment construction, vigorously developing urban culture.

It is proposed to build "three cities, one city" of the Library City, the museum city, the square culture city and the musical capital, so as to enhance the popularity of the city and increase the marketing and promotion of the city.

"In the past, the impression of Dongguan was that of working in cities. High-quality talents would not be concerned about Dongguan.

We are now trying to change the image of Dongguan and do a lot of work. The purpose is to make the city more attractive and appealing to high-quality talents, which is consistent with our efforts to pform the economic mode.

Whether the system, mechanism or urban development strategy, these supporting work will well support the adjustment of industrial structure.

Jiang Ling said.