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    Export Fall Sharply, Shoe Companies In PRD Are Affected

    2010/8/28 10:58:00 54

    Export Environment Market

    On August 28th, according to the Hongkong Wen Wei Po, Ding Li, a researcher at the Guangdong Academy of Social Sciences, said that exports fell sharply and processed a lot.

    Trade

    Enterprises are facing closure, closures or scale reductions.

    According to the Hongkong TDC estimates, there will be 1 enterprises in the Pearl River Delta in the worst case to stop production contraction, threatening the 2 million 500 thousand production workers in the Pearl River Delta region, and 70 thousand employees in Hong Kong enterprises will also be affected.


    Export growth slowed sharply in the first quarter, China

    foreign trade

    Guangdong, the largest province, bears the brunt.

    The analysis of the total economic composition of Guangdong in 2006 shows that Guangdong's foreign trade surplus accounts for 23.06% of the local GDP, while the proportion of GDP's increment is 70%. It is the highest province in China (China's foreign trade surplus accounts for less than 10% of the country's GDP).


    The shrinking of the processing trade enterprises will be the most powerful support for the turning point of China's trade surplus and will be beneficial to the long-term development of China's economy.

    However, for enterprises and local governments with a high degree of dependence on foreign trade, there will no doubt be in the throes of cold labor.


    It is reported that facing the difficult situation of export, many traditional processing trade enterprises choose to suspend business, pform, or close down the negative means to deal with.

    Guangdong Province, which has a high degree of dependence on foreign trade, will also face the double blow of GDP growth and Industrial Hollowing in some areas.


    More thanks to Hong Kong enterprises


    Hong Kong funded enterprises in Zhongshan

    Jin Yuan shoe industry

    Manufacturing factories have always been the United States and the European Union.

    market

    But in the first quarter of this year, their orders fell by 40% compared with the same period last year.

    Gao Zhu, chairman of Jin Yuan shoemaking factory, said that the more we do, the more we lose.

    And the data from the customs showed that in 1-2 months of this year, only 1512 enterprises participated in export shoes in the Pearl River Delta region, 1855 less than the same period last year.


    "The choice of reducing the size of the factory or temporarily out of business is the most direct way to export factories now."

    Gao also pointed out that improving the added value of export products and making private brands for domestic market is certainly the brightest way, but the time and capital needed are not achieved in the short term.


    Not only the footwear industry, but also the traditional processing trade industries such as clothing, furniture, toys and so on, choosing to temporarily suspend business and reduce the scale of production is almost the way that these enterprises adopt to cope with the shrinking export.

    "Processing enterprises to choose such a way to deal with difficulties is helpless, but also a negative move."

    The person in charge of the association of Hong Kong businessmen is an evaluation.


    Export crisis continues to expand in the second quarter


    "With the aggravation of all kinds of unfavorable factors for export, the most difficult time for footwear enterprises to make processing trade is 5, 6 and July of this year."

    Gao Zhu, who has been exporting shoes for many years and once held the presidents of the Hongkong footwear industry association, predicted this.

    "At that time, a lot of difficult business failures were expected."


    Gao also pointed out that with the further intensification of the RMB appreciation, the US press and the tightening of processing trade policy, the export crisis faced by the processing trade enterprises will continue to expand and expand.


    At the beginning of this year, China Textile Industry Association's research also showed that in the background of rising cost of raw materials and manpower, the depreciation of the US dollar, and the decline of the US economy, it is expected that in 2008, 1/3 export oriented small and medium-sized textile enterprises will be closed down in China.

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