Transformation And Upgrading Of Guangzhou'S Processing Trade Enterprises Into "Paradigm"

Is the so-called "sunset industry" declining from the west? Will the processing trade play an important role in Guangzhou's foreign trade? How can it help pform the way of economic development through pformation and upgrading? Can the experience of pformation and upgrading of Guangzhou's processing trade enterprises become an example of pformation and upgrading of processing trade enterprises in Guangdong and even China?

In December 8th, the Guangzhou Municipal Foreign Trade and Economic Cooperation Bureau held a seminar on pformation and upgrading of processing trade. Representatives from the competent government departments and processing trade enterprises and experts and scholars gathered together to start a dialogue on how to pform and upgrade Guangzhou's processing trade.

Guang Bao, Jinghua and mutual exchange succeed one after another.

Only bankrupt enterprises, not bankrupt industries.

Guangzhou Guang Bao group, a multinational company from Taiwan, has been engaged in a single processing business in the first three years after its commissioning in Guangzhou in 2000. The total investment of the group is less than US $200 million, and its operating income has been hovering around 10 billion yuan.

As a "foundry enterprise" outside the R & D and sales side, Guangzhou Guang Bao encountered five major problems in the development process, such as low management efficiency, lack of independent innovation, low value-added products, simple processing profit, and single market channel caused by orders from headquarters.

In order to solve this "five difficult problems", Guang Bao group implemented the "four major strategies" and began pformation and upgrading: first, set up regional headquarters and integrate regional resources.

Through the establishment of a unified management mechanism, the operation and management of the company's integration, the 13 enterprises according to product classification to form three production and operation team, give full play to the advantages of resource allocation, the realization of the computer, drive, communication equipment and other three products integration.

The two is to set up R & D institutions and master key technologies.

In order to overcome the difficulties brought by the development of previous key technologies provided by Taiwan headquarters, which is not able to meet the actual needs of production, Guangzhou Guang Bao set up a R & D center in 2009 for 280 million yuan, and moved the R & D team of Taiwan headquarters to the center as a whole.

At present, the center has 633 professional R & D personnel, has conquered the optical drive technology upgrading project, successfully grasps the world's leading Blu ray technology, and has launched a new type of optical disk drive, such as Blu ray drive, vehicle mounted optical drive, etc., which has achieved the breakthrough of core technology and independent intellectual property rights, and has 15 specialized technologies, firmly occupying the leading position of CD drive technology.

The three is to adjust the industrial regional layout and optimize the product structure.

In 2007, the company purchased the largest vehicle drive supplier in Europe, the Royal PHILPS electronics company, and pferred the company's production to Guangzhou.

Guang Bao also set up a branch plant in Beihai and other places in Guangxi, pferring the traditional products with low added value, such as desktop computer drive, to the West and the mainland.

At the same time, the company adjusted its product structure in a timely manner, reduced production and sales of low value-added products, and increased the proportion of production and sales of high value-added products such as thin disc drive.

The four is to expand domestic sales and break through the role of "foundry".

In order to open up the domestic market, Guangzhou Guang Bao set up an enterprise specializing in domestic sales, LITE-ON (Guangzhou) Electronic Technology Co., Ltd., which co ordinate over 1 billion yuan of domestic market.

Unlike the group, Guangzhou Jinghua Optical Electronics Co., Ltd. is a private enterprise founded in 1997.

Before the pformation, the company was at the bottom of the smile curve, like many OEM enterprises in China. The industrial value chain was short and the profit margin was only 10%, while the remaining 90% of the profits were occupied by brand dealers, retailers and retailers.

Faced with this small profit dilemma and the ensuing financial crisis, Jinghua company continues to extend to both ends of the value chain, enhance its capability of independent innovation, build its own brand and sales network, and begin strategic pformation.

At the beginning of 2009, Jinghua was in danger of seeking opportunities, resolutely "copy the bottom", successfully acquired Germany's "BRESSER", an internationally famous trademark with a history of more than 50 years, and gained control of its brand and sales channels.

At the end of the year, Jinghua also bought the US EXPLORE SCIENTIFIC company.

Through these two successful acquisitions, Jinghua has been able to enter the European and US markets.

In the first three quarters of 2010, Jinghua exported 16 million 620 thousand US dollars, of which 50% of the "BRESSER" brand goods, and 11% of EXPLORE SCIENTIFIC brand products, greatly expanded the market share of products in Europe and the United States.

Tasting the brand sweetness did not stop there. They put their eyes on the key to enhance the core competitiveness of enterprises: independent innovation.

To this end, Jinghua has increased its investment in R & D core technology. Since 2007, its investment in R & D has increased by nearly twice the annual rate. Nearly 20 key technologies have been developed independently, and a series of new products with considerable competitiveness have been launched.

If Guang Bao and Jinghua are typical cases of successful pformation in the electronics industry, mutual investment ($160 million) by Hongkong mutual Textile Holdings Limited (Panyu) textile printing and dyeing Co., Ltd. is the representative of the so-called sunset industry.

As a traditional labor-intensive enterprise, mutual textile achieves pformation and upgrading through energy saving, emission reduction, technological pformation, product upgrading, and expanding domestic sales.

Under the guidance of the state's policy of promoting low carbon economy and energy conservation and environmental protection, in order to better cope with the increasingly stringent green barriers to international trade, Guangzhou has invested 200 million yuan in energy saving and emission reduction. It is the first textile enterprise to voluntarily carry out cleaner production in China, and its clean production has reached the international advanced level.

As of 2009, the comprehensive energy consumption of the company's industrial output decreased by 28%, the energy consumption per unit product dropped by 17.4%, the energy saving target exceeded 147%, the annual water saving 11 million tons, the saving of standard media consumption 17 thousand and 700 tons, the production cost of the enterprise dropped by nearly 5%, and the direct experience and benefit of the energy saving project reached 35 million yuan per annum. It successively won the honor of "Guangdong advanced energy enterprise", "Guangzhou cleaner production demonstration base", "national printing and dyeing industry energy conservation and emission reduction Award", and Hongkong Federation of trade unions 2008/09 "hang Seng triangle Environmental Protection Award".

At present, the water intake quota standard and the cleaner production evaluation standard of knitted dyeing and printing enterprises have become an important reference for the state to compile relevant industry standards.

The achievements of the pformation and upgrading of the Pacific textile industry were tested in the international financial crisis. In 2008, the exchange of textiles not only won't be shocked, but won a record high production order, with a total revenue of 3 billion 450 million yuan, of which 65% of the new and high technology products accounted for business, and the total profit was 220 million yuan.

By 2009, the company's production scale increased by 24 times than that in 1998, and grew to the top 500 of China's foreign trade enterprises. In 2009, its export volume was $520 million, and exports amounted to US $280 million in the first half of this year.

Mutual use confirms its own actions, "only sunset technology, no sunset industry; only bankrupt enterprises, not bankrupt industries".

The pformation and upgrading of processing trade is effective.

Guangzhou should be a leader in the pformation and upgrading of processing trade in the whole province and even in the whole country.

The successful pformation of Guang Bao, Jinghua and each other is the epitome of the pformation and upgrading of Guangzhou processing trade enterprises.

Reporters learned from this seminar that in recent years, Guangzhou has conscientiously implemented the strategic decision of the Guangdong provincial and provincial governments on the pformation and upgrading of processing trade, combined with the internal requirements of Guangzhou to accelerate the pformation of the mode of economic development, striving to optimize the industrial structure of processing trade, constantly improving the management and service level of processing trade, and striving to achieve the unification of the speed, structure, quality and efficiency of processing trade.

The product structure is continuously optimized.

The proportion of electromechanical products and high-tech products increased significantly. In the 1-10 months of this year, the proportion of processing trade machinery and high-tech products in Guangzhou accounted for 63.97% and 32.53% respectively, which increased by 27.86 and 22.57 percentage points respectively compared with that in 2001. The proportion of processing trade mechanical and electrical products and high-tech products accounted for 65.39% and 86.72% of the total exports of similar products in the city.

At the same time, the proportion of labor intensive products exports showed a downward trend. The total proportion of three categories of textiles, clothing, shoes and hats and leather products accounted for 11.99% of the total export volume of processing trade, down 20.59 percentage points from 32.58% in 2001.

The ability of independent innovation of enterprises has improved significantly.

Up to now, 609 foreign invested enterprises in Guangzhou have their own trademarks (including foreign invested enterprises' own trademarks), and those exported by independent trademarks account for 30.08% of foreign invested enterprises' exports.

Among them, processing trade accounted for 19.04% of the total export volume of processing trade.

In addition, 285 foreign invested enterprises have the ownership or the right to use the brand (trademark) through purchase or lease and authorization.

A total of 133 R & D institutions have been set up.

The momentum of developing domestic sales is good.

In the 1-10 month of this year, domestic sales of foreign invested processing trade enterprises in Guangzhou amounted to 68 billion yuan, an increase of 19.86% over the same period last year, and the processing trade bonded import materials sold to domestic sales for 495 million US dollars.

Intensive development and industrial agglomeration are becoming increasingly significant.

Since the beginning of this year, the processing trade export of Guangzhou Development Zone and Nansha Development Zone has accounted for over 50% of the total processing trade export, which is 20 percentage points higher than that of 2004 (Nansha District construction area).

Guangzhou Development Zone's Electromechanical industry, Nansha automobile industry, Panyu District jewelry processing industry, Huadu District leather goods industry, Whampoa daily consumer goods industry and so on have formed cluster effects, and the latter four have been rated as "China's 100 best industrial clusters".

According to the Guangzhou Municipal Bureau of foreign trade and economic cooperation, Guangzhou has formulated and started implementing the Guangzhou pformation plan to promote the processing trade.

With the efforts made in the whole process, the industrial structure of the processing trade has been greatly improved, the overall level of the modern industry has been greatly improved, the processing and manufacturing links have been greatly improved, the technological content and the value-added rate of the products have been further improved, the industrial chain has been continuously extended, the capability of independent research and development has been greatly enhanced, the independent brand and marketing network of processing trade has been gradually established, the functions of logistics and distribution, headquarters have been strengthened, the capability of developing domestic and foreign markets has been further cultivated, the environment of processing and trade pformation and upgrading has been continuously improved, and the innovative industrial parks and special regulatory regional systems with complete functions and advanced facilities have been basically formed; the processing trade enterprises have continuously deepened their social responsibilities, and their environmental awareness has been constantly strengthened; the pformation and upgrading of the city's trade in processing industry has achieved remarkable results, and Guangzhou has become the vanguard of the pformation and upgrading of processing trade in the whole province and even the whole country. The plan clarifies the goal of the pformation and upgrading of Guangzhou's processing trade, that is, "strive for ten years."

How to promote the pformation and upgrading of processing trade? {page_break}

Classification guidance, orderly advance, key breakthroughs, easy to get ahead, and difficult to come from.

Xiao Zhenyu, director of the Guangzhou Municipal Bureau of foreign trade and economic cooperation, said that in order to achieve this goal, Guangzhou foreign trade and Economic Cooperation Bureau will promote the pformation and upgrading of processing trade in accordance with the principles of "classified guidance, orderly progress, key breakthroughs, first easy and difficult to do, and point to point".

肖振宇介紹，該局將加工貿易企業分為五種類型，采取不同措施來推動其轉型和升級：對跨國公司在穗投資設立的“研發”、“銷售和品牌”兩端在外的代工型企業，爭取其將研發和物流配送中心放在廣州，爭取總部把更多的訂單轉移到廣州生產出口，并通過拓展內銷，實現代工企業“單純加工角色”向“生產+銷售雙重角色”的轉換，并使品牌經營成為可能;對國有和民營加貿企業，扶持其堅持自主創新，加大研發投入;對早期進入的港澳加工貿易企業，引導其加大技術改造和產業升級的力度，降低對勞動力的依賴;對國內購料比重大的來料加工企業，引導轉型為自主性更強的進料加工企業，享受國家出口退稅政策;對把制造環節轉移出去的加工貿易企業，要爭取其將總部、研發、銷售等環節留在廣州。

Xiao Zhenyu also briefed reporters on the prospects for pformation and upgrading of Guangzhou's processing trade: strive to reach 75% and 45% of the total import and export volume of processing trade in 2015 respectively, compared with 2009's annual growth rate of 4.03% and 4.79% respectively; 20% of processing trade enterprises set up various types of R & D institutions; 50% of processing trade enterprises have their own trademarks; and the total domestic sales volume of processing trade enterprises exceeded 80 billion yuan, an increase of 15% over 2009.

In 2020, we took the lead in basically realizing the pformation and upgrading of processing trade, and basically realized the high-end and modernization of the processing trade industry.

The mechanical and electrical products and high-tech products accounted for 80% and 55% of the total import and export volume of processing trade in the city respectively, compared with the average annual growth rate of 1.30% and 4.10% respectively in 2015, 40% of the processing trade enterprises set up various types of R & D institutions, 60% of the processing trade enterprises had their own trademarks, and the total domestic sales volume of processing trade enterprises doubled to 140 billion yuan in 2009.

Chen Mingde, vice mayor of Guangzhou, stressed that in the face of the current strategic international opportunity for the pfer of international industries and the great economic and social development of the 12th Five-Year, Guangzhou will continue to promote the pformation and upgrading of processing trade and realize a more scientific and sustainable development of the export oriented economy in accordance with the Central Committee's proposal to accelerate the pformation of the mode of economic development and extend the domestic value-added chain of processing trade according to the proposal made by the Central Committee on the formulation of the 12th Five-Year plan.

He said that Guangzhou will continue to study and explore new ways and new ways of pformation and upgrading of processing trade, further solve the key and difficult problems in practice, and actively promote the pformation and upgrading of processing trade. It will contribute to Guangzhou's efforts to build an international business centre during the "12th Five-Year" period, and build an international metropolis facing the world and serving the whole country.