Pearl River Delta Small And Medium Enterprises Survival Survey Report

In June 26th, heavy rain poured in Shenzhen.

This new city that once carried the dream of the Chinese economy and the southern people never seemed to lack the storm.

For a long time, the Pearl River Delta, known for its open bridgehead and the "foundry kingdom", has long been under the pressure of pformation.

More than 20 days ago, the new round of pay rise, relocation tide and investment attraction began to spread in the Pearl River Delta region and extend to a wider range.

In an instant, this has become the focus and the whirlpool of the whole nation.

In the past week, South Shenzhen and Dongguan have visited the real existence of enterprises in the Pearl River Delta region.

Does the seemingly logical and logical evolution of the "pay rise tide - the tide of outward migration"? Is it really the reasoning of the outside world? What are the real puzzles and choices faced by this group of China's most active private enterprise groups? What is the way forward as the Pearl River Delta, the most gorgeous and active production workshop of the world factory?

The private economy in the Pearl River Delta is the target of investment in all parts of the country.

In June 25th, Shenzhen Airlines Hotel, a "twenty city investment promotion and project docking conference" forum, officials from all provinces and municipalities in China accounted for the overwhelming majority.

The scene of the road show is from eight cities, namely Bengbu, Anhui, Chengdu, Sichuan, Daqing, Heilongjiang.

Road show is only the most basic interactive investment program.

During the lunch break in the forum, our reporter noted that Chongqing had prepared a good table wine for the participating enterprises, and the song and dance dinner arranged by Jiaxing, Zhejiang, had already begun to dress rehearsal.

It is not too much to describe the courtesy of enterprises that want to expand their investment abroad.

As a participating enterprise, the representative of Shenzhen Nanfang science and Technology Co., Ltd., after the meeting, was bombarded with lobbying.

The merchants' representatives tried their best to show their locational advantages, pportation advantages, manpower cost advantages and hardware facilities, while the cards were "policy advantages", including local fiscal revenue refund, land pfer price and so on.

This is just a wave of recent wave of investment in Shenzhen.

On the streets of Shenzhen, the high-end hotels near the main road, whether the lobby sign or the external wall electronic display, are constantly changing and changing all kinds of "a province's investment talks" or "a certain district and a chamber of Commerce Association".

The "industry docking meeting" and "investment talks", which are numerous and complicated, have been noisy in recent years in all the high-end hotels in Shenzhen.

Underground activities are also extraordinarily active.

For a long time, many merchants or industrial parks in many cities, as well as heads of division responsible for investment projects in Shenzhen, have been visiting various kinds of social places in Shenzhen everyday.

Recently, the chance of "meeting the bus" is quite high.

A business director of a city commercial bureau laughed, "even just had lunch together at noon and hit a cafe in the afternoon."

During our visit to Shenzhen, our correspondent also met several levels of Henan province.

Not only the government, but also the investment teams of private enterprises are gathered here.

In Shenzhen, Zhengzhou Seattle Innovation Industry Park Real Estate Co., Ltd. staff members, that is, directed at the "relocation tide".

The new wave of attracting investment has directly pushed up the cost of investment.

Hotels in Shenzhen not only offer discounts, but also often fill their rooms.

The 5 minute roadshow at the forum will cost tens of thousands of the organizers.

"Because of Shenzhen's" raise ", just let" merchants tide "is particularly lively.

Ceng Ying, a project official of the Chengdu Municipal People's Government in Shenzhen, revealed the mystery.

In her view, even if there is no pay increase, the Pearl River Delta region's investment competition intensity is also no match for any city in the country.

The government official who has been inviting businessmen for many years has his own set of "investment promotion". Beijing is mostly a central enterprise or a large state-owned enterprise. The CEO of a company is unable to decide on investment; and the most active element of Shanghai's economy is foreign-funded enterprises. The investment in clapper boards is often uncertain in China.

Field visits: Rise and spread of wage rises

Due to the lack of jobs on the coast, workers' pay increases have been raised, and the next big salary increases will inevitably be inevitable.

A common view from all over the investment teams is that the storm of pay rise has led to the wave of "wave of investment".

This reporter learned that even local governments have urged the local investment team to go down south in the form of red tape.

In June 11th, a briefing was made in Xingtai, Hebei Province, which said that the chain effect of wage increase in the Pearl River Delta region would cause the local labor force price to rise and the cost of enterprises to increase. The labor-intensive enterprises are facing the relocation of industries.

What is the real situation of the wage increase in Shenzhen enterprises, where the outside world is on the move, but in the core area?

In June 9th, the Shenzhen municipal government announced that the minimum wage for full-time employed workers was raised to 1100 yuan / month from July 1st.

The minimum wage in the SAR was 1000 yuan / month. The Baoan District and Longgang districts outside the special zone are the most densely populated areas in the manufacturing industry, with a minimum wage of 900 yuan / month.

In May of this year, the Shenzhen central customs integration plan was approved by the central government, which means that the wage unification was 1100 yuan / month.

According to our reporter's investigation, most manufacturing enterprises in Shenzhen, Huizhou and Dongguan have already raised their salaries for their employees.

But most of the companies responded that their raise was not known as the minimum wage standard of the Shenzhen municipal government or the pay rise of a large enterprise. As early as before, they had already raised their wages for employees and were above the minimum wage level by about 8%.

Chen Yonghan, President of the Shenzhen processing trade association and Hong Kong businessman, said that the average monthly wages of the workers on the assembly line of Shenzhen's processing trade enterprises were about 1180 yuan after the increase in salary, plus overtime pay at least 2000 yuan per month.

The factory leaders, team leaders, section chiefs and engineering workers in the Ministry of technology increased their salary by at least 500 yuan.

In the past, workers paid a raise every year, but the rate was not big this year, about 4%.

As a high-tech enterprise based on ink paint, Liu Guomin, chairman of Shenzhen Shenzhen SEER Industrial Co., Ltd., also does not recognize that this wave of pay rise is caused by individual enterprises.

The company had already completed a pay rise long before the government announced a pay rise.

According to his observations, the shortage of labour and the need for industrial upgrading in the Pearl River Delta are the fundamental reasons for the increase in wages.

"Weird this year is that after the financial crisis, orders retaliatory rebounded, including many toys companies including our enterprises, orders have been placed after the national day."

The vice chairman of Shenzhen Toy Association, chairman Hu PI Hu, director of Pipi Xiong, brought the wage increase to labor shortage, which proves that "too many orders naturally bring employment pressure. Now employers are really not good at recruiting and can only increase their salaries."

It is understood that the Hongkong manufacturers' recent survey of enterprises in the Pearl River Delta showed that 90% of the respondents said there was labor shortage.

In the eyes of more people, since the Spring Festival this year, the lack of workers on the coast has triggered a rise in wages for workers, and the next big salary increase will inevitably be inevitable.

In fact, over the past thirty years of reform and opening up, the supply of rural labor has reduced its price to an unimaginable level, and the low price labor force has created the great competitiveness and miracle of the "made in China" in the PRD.

However, with the gradual ending of the demographic dividend and the rise of the new generation of migrant workers, the cheap labor force, which has always been considered to be close to the "unlimited supply", is now facing a shortage.

With the economic growth to a certain extent, the price of labor is bound to be reassessed, and this wave has landed in the Pearl River Delta and other southeast coastal areas.

Internal and external integration: the Pearl River Delta is facing another dilemma.

At the same time, tax reform and tax rebate are "moving".

In the Pearl River Delta, while facing the pressure of wage increase, the external policy environment is also experiencing a sudden change.

Just a few days before our reporter rushed to Shenzhen and other places, in June 19th, the central bank announced the resumption of the reform.

At that time, market analysis suggested that the RMB exchange rate flexibility would be enhanced, but the possibility of significant appreciation would be small.

But by July 1st, the yuan, as the official exchange rate of the renminbi, had reached a new high since 2005.

Since the announcement of the resumption of foreign exchange reform, just 9 trading days, the "official recognition" of the renminbi has risen to 0.61% relative to the US dollar.

In the past two weeks, the appreciation of RMB has exceeded expectations.

Misfortunes never come alone.

In June 22nd, the Ministry of Finance and the State Administration of Taxation jointly issued the notice on canceling the export tax rebates for some commodities, and decided to cancel the export tax rebates for the 406 tax numbers starting from July 15th this year.

The abolition of the export tax rebate products are mainly divided into 6 categories, and previously, these products enjoy 5% to 17% of the export tax rebate rate.

China's resumption of foreign exchange reform and the abolition of export tax rebates made the export enterprises of the PRD feel chill.

"Although I had anticipated it, I still felt the pressure."

Huang Xinwen, Deputy Secretary General of Dongguan Association of foreign trade enterprises, told reporters that the central bank announced the implementation of a managed floating exchange rate system in July 21, 2005. On the same day, the yuan appreciated 2.1% to 8.11 yuan against the US dollar. In the next three years, the furniture industry and Guangdong bankrupt enterprises reached 3000.

According to Huang Xinwen estimates, foreign exchange reform and tax rebate at the same time, the pressure of processing enterprises is huge.

Since the beginning of this year, labor employment costs have risen by 20%, and profit points have been 3~5 percentage points.

It was widely expected that the value of the currency would rise by 5 percentage points, and it could be maintained through tax rebate. Now it seems that the original revenue model can no longer be maintained.

Cheng Feng, President of the Guangzhou Taiwan Cooperation Association, revealed that if the RMB appreciated by 3% against the US dollar, most of the enterprises in the Pearl River Delta could still bear it, but the increase would reach 5%. Many export oriented Taiwanese enterprises would be in a difficult position.

According to local analysis, the export of some low profit labor intensive industries will face a sharp decline. Clothing and footwear exports will probably be the most seriously affected industries.

This means that for the export oriented enterprises in the Pearl River Delta, a trend in the future is to change the target to target the domestic market, or to wait for profits to be eclipsed.

External conflicts: elaborate cost game

The superposition of various factors, such as fiscal policy and main customer relocation, should not be underestimated.

Are there enough strength to raise the pressure of salary increase and the change of fiscal and taxation policies to pry the large number of relocation of enterprises in the Pearl River Delta?

For a long time, a lot of opinions from the outside world suggested that the wage surge directly led to the relocation of enterprises in the Pearl River Delta region.

However, our reporter's in-depth investigation in the Pearl River Delta denied the above view.

The production enterprises in different industries, when interviewed by this newspaper, said that although the rise in wages is in existence, it is by no means an external speculation that it is a "fatal blow" to many processing enterprises.

Hu Lan told reporters that this round of pay increase is not as difficult as the two wage increase in 2007 in the Pearl River Delta.

Liu Guomin, chairman of Shenzhen Shen se Er Industrial Co., Ltd., also told our reporter that the extent to which the salary increase can stimulate the "relocation" of the PRD processing enterprises is worth exploring.

For example, the proportion of labor cost in manufacturing cost is only about 15%.

Although salary increase is not a core factor, the superposition effect of various factors such as fiscal and tax policies and main customers' relocation can not be underestimated.

As a Taiwanese businessman, Chen Huisong, President of the Seattle chamber of Commerce in Zhengzhou, who has invested in and invested in the development of Taiwan, has hit the nail on the head: "many of the coastal enterprises such as the Pearl River Delta are moving inland, raising salaries and labor force is only one aspect, and more importantly, the export profits are getting thin and blocked. These enterprises are aiming at the huge domestic demand market, and China's industrialization is experiencing a trend of change from coastal to inland."

However, beyond the trend, the reality of these enterprises is a dilemma: moving away from the main customers.

Not moving inland, it is also faced with increasing employment and other costs.

Of course, if the main customers move inland, that's the ideal situation.

"Migration costs will save more labor, land and production costs than in the environment of Shenzhen.

But every boss's first consciousness is always making money, not saving money.

Where the customer is, the supplier's workshop is located.

Moreover, there is also a risk of poor government environment and increasing the cost of enterprise development.

Liu Guomin's words can represent the mentality of some enterprises. "However, large scale processing enterprises take the lead in moving them, which is a necessary condition for the whole industry to move in."

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In the survey, reporters found that under the pressure of cost, the PRD industry that could be loosened and shifted was still a traditional labor-intensive industry such as medicine, commerce, clothing, footwear, toys and so on.

(relatively speaking, the pfer of electronic industry under the pressure of salary increase or other cost is more difficult.

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It is understood that in September 2008, Shen seal has built a production base in Xinyang, Henan, and has not yet been built up to this day.

But now, with the relocation of the main customers, the construction of the base has begun to accelerate.

But even so, the enterprise is only part of the capacity pfer, not overall migration, and Xinyang is only defined as a branch.

According to the survey, southern technology and light group are all related to the processing of electronic technology products, and "have developed projects in other cities, or are preparing for relocation".

However, in a press interview, the heads of the two enterprises held a negative attitude towards whether there was any infiltration into northern China or the overall migration of manufacturing links.

"Even a small hawker who assembles cellphones is not willing to move north.

He runs a trip to Shenzhen Huaqiang North (Shenzhen electronic products trade market), not only all the spare parts can be bought, but also the mobile phone he assembles can be sold smoothly.

This is an advantage unmatched by any city in the country. "

Ceng Ying, Chengdu's Shenzhen office, said.

In fact, objectively speaking, no enterprise will blindly move in and decide the relocation of enterprises.

In addition to the cost of labor, it is necessary to consider the cost of logistics, the cost of logistics, the maturity of upstream industries and parts, the proximity of downstream markets, the business environment of the residential areas, the market order, the level of rule of law, the conditions of investment and financing, the cost of capital use, the level of talent gathering, and the ability of government services.

99 degrees to 100 degrees:

Who is the real straw?

The real reason for the industrial pfer is the guiding change of the industrial layout policy in the Pearl River Delta.

As a matter of fact, for the more enterprises, the more important factor is the more important factor.

It is this pressure that directly causes the urgent pressure and actual demand of the relocation of local enterprises.

Shenzhen enterprises generally reflect to this newspaper that the most fundamental core of industrial pfer is from the guiding change of the industrial layout policy in the PRD.

"Teng cage for birds" is the image of industrial restructuring and upgrading proposed by Guangdong, a big Chinese province in 2007, that is, to promote labor-intensive and low value-added traditional manufacturing industries to move out of the PRD, so as to "develop" high value-added industries.

The Pipi bear of Hu Lan is the first toy brand with completely independent intellectual property rights.

When reporters arrived in Shenzhen, she was also working out a project plan to match the animation industrial park with Shangshui county government in Zhoukou.

Hu Lan said that they went to invest in the development of factories, because the reality of China's toy foundry enterprises, has been unable to meet the needs of orders.

However, her subjective inclination is to set up factories near Shenzhen. She is reluctant to see Shenzhen's development environment.

The high land cost, high infrastructure use cost and even "raise" that Shenzhen has been raising in successive years is, in its view, a means of landing the policy of "changing the cage and changing the birds".

"We do not want to go, but industrial policies force us to go.

I think Shenzhen's toy industry is defined as a traditional, low value added, labor-intensive sunset industry. It's very unwise to drive us away. "

Hu's blue sky has some criticisms about "cage changing birds", but there is no alternative.

Liang Xianping, general manager of Tongxin investment company in Shenzhen, believes that the objective of judging Shenzhen's industrial policy orientation changes should respect its development history.

According to Liang's observation, Shenzhen can have today's development situation, benefiting from the trend change from "Introduction" to "going out" experience.

"First of all, from the large-scale introduction of Hong Kong capital, to the expansion of foreign investment sources to more than 90 countries and regions; secondly, the use of the" three to one subsidy "enterprises spillover effect, cultivate internationally competitive local enterprises, and actively participate in international market competition.

In Liang Xianping's view, we are now faced with the third step, that is, product processing, trade, scientific and technological achievements, funds and other resources as a link. Through the joint mode of "three points and one line" in the mainland, Shenzhen and overseas, we will build export processing bases and join hands in the international market, so that the export scale of Shenzhen and the mainland will expand rapidly.

Finally, from the industrial cooperation relationship with Hongkong, we will build a world-class metropolis.

Liang believes that the "three to one supplement" enterprises are especially noteworthy. They are mostly Hong Kong funded or Taiwanese funded foundry enterprises that enter the mainland of China at the beginning of reform and opening up.

Because they only earn processing fees, so they can enjoy more preferential tax policies, or even pay corporate income tax.

However, 30 years later, the area of these enterprises is not compatible with the tax rate.

Moreover, it does not solve the employment problem of the Shenzhen population. The excipients purchased in the mainland are also limited.

Well, staying here is clearly out of date.

"Actually, I don't want to go. Actually, I want to stay."

But the increasing pressure of reality has become the last straw that forced most of the PRD enterprises to move out.