Dongguan Shoe Enterprises Optimize Investment Structure To Boost Industrial Upgrading

Recently, the central media have clarified the rumors of closure in important pages and time periods.

The report concluded that the Pearl River Delta region, including Dongguan, is not "closed down", and the profits of small and medium-sized shoe and clothing enterprises are indeed squeezed.

Dongguan is a famous manufacturing city in the world and a weathervane made in China.

Since August, in view of the changes in the economic field and the conjecture of the "collapse tide" of SMEs in Dongguan, the central media has gone deep into the reports of Dongguan enterprises, presenting the true picture of Dongguan's economic operation.

Dongguan's textile and clothing, shoemaking, tanning and other labor-intensive industries, because of the high cost of labor, operating costs and profits decline is more obvious.

This year, the cost of labor in these industries increased by 12.6%, 24.4% and 14.7% respectively, and the total cost increased by 10.8%, 12.6% and 12.4% respectively. The profit rate decreased by 2.5, 0.4 and 1.4 percentage points respectively.

Shoes and clothing and other small and medium-sized enterprises are facing steady and rapid growth. They also face many difficulties that can not be overlooked: first, financing difficulties; secondly, profits squeezed; and finally, difficulties encountered in the process of pformation and upgrading.

Enterprises generally reflect the following problems: "three shortages" (lack of electricity, lack of funds, lack of funds), "four liters" (rising raw material costs, rising labor costs, rising financing costs, and rising RMB exchange rate), which creates great pressure on production and operation.

The operation of the central media is difficult, actually in the economy.

Facing the market, Dongguan enterprises should actively respond to the problem: first, improve the level of automatic production.

In 2010, Ying Sheng Garment Company updated 80% of its equipment and increased production efficiency by 5% to 6%.

Two, speed up R & D and production of new products.

SANYO Motor Technology (Dongguan) Co., Ltd. has grasped the current market focus of smart phones, and actively developed and produced smart phone vibration motors, so that the added value of products increased to 35%.

Three, we should actively explore the domestic market.

The survey shows that 29.3% of enterprises will reduce the proportion of foreign sales and raise the proportion of domestic sales.

Obviously, the forced effect is expanding, and the investment and expansion of enterprises will inevitably conform to the trend of changes. These effects superimpose, indicating that Dongguan's industrial structure is upgrading step by step.

Apart from optimizing the industrial structure autonomously, the guiding role of the government is also crucial.

It is learnt that in Dongguan, a series of policies to expand domestic demand and enterprises to expand the domestic market, Dongguan's domestic industrial sales have achieved rapid growth, and to some extent, it has changed the situation of excessive dependence on industry.

Most of the key enterprises in Dongguan will stabilize and expand.

Accurate data is more convincing, and import and export data has always been an important annotation of Dongguan's economy.

In the first half of this year, the total import and export volume of Dongguan amounted to US $62 billion 470 million, up 14.1% from the same period last year, which has increased by 27.5% compared with the first half of 2008.

At the same time, another group of figures shows the "qualitative" change of Dongguan's foreign trade: the proportion of import and export of processing trade in the whole import and export is decreasing year by year, the proportion in 2008 is 87.9%, and in the first half of this year it has dropped to 77.6%, which has dropped 10.3 percentage points in three years. Correspondingly, the proportion of general trade accounts for a substantial increase.

"The total volume of imports and exports is still increasing significantly, while the proportion of imports and exports of processing trade is decreasing, which shows the upgrading of Dongguan's economic quality."

Wang Qinghua, Commissioner of customs and excise of Dongguan, analyzed.