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    Exchange Rate Rises &Nbsp; Dongguan Shoe Industry Is Facing New Challenges.

    2011/3/30 13:54:00 53

    Exchange Rate Dongguan Challenge

    The exchange rate of RMB against the US dollar has been rising all the way, and it has broken through the 6.56 pass at one stroke, and has reached a new high since the exchange rate reform was made.

    Reporters are known as "

    World factory

    "Dongguan, known as this year, because of

    Raw material

    Prices and labor costs have risen sharply, and the impact of RMB appreciation on Chinese factories is expanding. Many exports in Dongguan.

    enterprise

    Forced to raise prices, but because of limited bargaining power, a large number of SMEs can only support.



    Dongguan great sincerity

    Shoe material factory

    General manager Cheng Liangbo gave the reporter an account. In the past year, the wages of the workers in the factory rose by 20% to 30%, but the price of raw materials and natural rubber increased by more than 200%.

    Lose money

    The dilemma is that only 15% of the current product price is barely maintained.

    He said,

    Payment for goods

    It usually takes six months or a year to settle accounts, and the exchange rate at the time of settlement is calculated according to the exchange rate at the time of signing the contract. However, because the exchange rate of RMB against the US dollar has been rising, the profit that has already been slumped has fallen sharply or even lost money.


    Cheng Liangbo said, according to the current situation, if the price of export products is not raised, the factory can only wait and close, but in fact the bargaining space is limited. Even if the price is raised by 20%, it will make up for the pressure of rising cost, and the profit rate of the factory is still very low.


    Li Daxiao, director of the British Securities Institute, believes that the trend of RMB appreciation has not changed since the recent situation.

    In view of this, China's export oriented enterprises will face the dual pressure of labor shortage and RMB appreciation for a long time.


    Li Daxiao said that China's manufacturing industry is facing tremendous pressure of pformation. The low end manufacturing industry without technical content can only be passive in bargaining. Chinese enterprises need to create their own brands, increase the added value of products and expand the bargaining power. In this process, enterprises that are able to adapt to changes in the environment and seek innovation and change will stand out and will not be adapted to be eliminated.

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