Will The World Shoe Capital Collapse In Dongguan Under Dual Pformation?

The traditional industries in Dongguan will be impacted. The pressure of the current situation will lead to the withdrawal of traditional enterprises, the adjustment of processing trade policies, the reduction of export tax rebates, the appreciation of RMB, the increase of labor costs, the increase of raw material prices, and the implementation of the labor contract law.

Influenced by many factors at home and abroad, Dongguan, which is mainly a processing trade oriented enterprise, resolutely put forward the dual pformation of economy and society, and how much pressure it is possible to imagine.

Recently, a Taiwanese furniture business in Qiaotou town of Dongguan was closed down, and the boss ran away and owed about 8000000 yuan in wages.

At the beginning of last month, Dongguan Chang Deng Shoes Co., Ltd. (Taiwan funded enterprises) used the name of the paction to compensate the more than 4000 employees with about 40000000 yuan as an economic compensation.

According to the reporter's contact with the Dongguan town and Taiwan Businessmen Association, influenced by many factors at home and abroad, the traditional enterprises such as shoemaking, furniture, hardware and other traditional enterprises have seen a large number of withdrawal in recent years since October last year, causing media concern.

According to the survey, the withdrawal of Dongguan enterprises and restlessness, Shilong, Shijie and other electronic information industry heavy industries, the reaction is fading away.

However, as the town of shoemaking, furniture and other traditional industries, there are many fluctuations in the streets such as Houjie and Daling mountain.

Information from the Asian Footwear Association shows that in the first three quarters of 2007, nearly 1000 shoe factories and related enterprises in Guangdong were closed or moved out.

Dongguan, based on "three to one supplement", has joined the closing or relocation ranks under the heavy pressure of this climate.

It is reported that these traditional enterprises generally move to places like Jiangxi, Hunan or Guangxi, and some move to Vietnam, Thailand and other places.

Insiders predict that with the stimulation of the implementation of the labor contract law, the trend of shutting down or moving outward will peak before or after the Spring Festival.

Suspense double pformation will bring the double cost of "hollowing out" industry, and enterprises will be enveloped in the stove on many unfavorable factors at home and abroad. Dongguan traditional enterprises are "exhausted".

At this point, Dongguan is still pushing forward the "double pformation", and Dongguan industry has ushered in the era of industrial reshuffle.

With the coming of wind and rain, the suspense arises: will Dongguan's "double pformation" bring the industry "hollowing out" under heavy pressure?

At the forum held by the CPPCC auditors on the day before yesterday, Ye Chunrong, President of the Dongguan Association of Taiwanese businessmen, said: "the profit is getting thinner and thinner, and the government will not clear up the problem of arbitrary fees and multiple charges, and the enterprises will die faster."

Ye Chunrong is the chairman of an electronic technology company. According to it, there are many traditional enterprises leaving Dongguan.

Ye Chunrong mentioned that many residential (Village) committees charge 20-25 yuan per person per month for the foreign enterprises. The cost is only about 500 thousand yuan a year for 2000 people.

In addition, there are street lamp fees, embankment fees...

Ye Chunrong also said: Dongguan's dike fee may not be high in Guangdong, but it is very high in the whole country: if it is more than 500 thousand, it will pay 500 thousand yuan if it is measured by export turnover, and just 500 thousand will pay 500 thousand yuan.

"The labor contract law requires more and more enterprises, and law enforcement is stricter. The profits of enterprises are very few."

Ye Chunrong said that in the past, the local villagers' committees were poor and paid more or less, but now it is so difficult to survive. Some fees are unreasonable. There is no legal basis. Local governments should cancel or give some support to enterprises.

Many CPPCC members of the business community share the same feeling: central policies and laws must be observed and implemented by enterprises, but can the extra burden be removed?

After all, enterprises have already paid taxes to local governments.

"How many companies are coming in?"

Ye Chunrong expresses his worries. When 1/3 enterprises and 3 million people withdraw, what does Dongguan mean?

Dongguan has become a hidden danger for Dongguan, a mainland investment base, and a team of attracting investment from various governments. They have been offering "killer mace": land is guaranteed.

No power cuts!

No shortage of labor and low cost.

There are many preferential policies...

"At present, 208 projects have been recruited, with a total investment of US $3 billion 914 million."

This is Ding Jiemin, Secretary of the Huaian municipal Party committee, who made an open victory to the media at the meeting.

It is reported that this is the eighth large-scale investment in Huaian, and will continue in the future, and it will be a long-term adherence to the system.

According to Ding Jiemin, since 2005, Huaian has sent 200 strong lineup to Dongguan.

Ding Jiemin could not conceal his desire: Dongguan has a large number of Taiwanese businessmen and Hong Kong businessmen. It is an important battleground for Huaian to recruit foreign businessmen. With the opportunity of Dongguan's industrial upgrading and pformation, it hopes to get more foreign businessmen to invest in Huaian.

According to introducing, Huaian implements "one-stop" examination and approval, "zero distance, all-weather, nanny" service, continuously strengthens and improves services for foreign investment enterprises, and vigorously implements ten systems, namely, leading enterprises, foreign-invested enterprises service months, complaints acceptance supervision and soft environment construction evaluation, investment decision consultation service, project construction whole process assistance, enterprise service month and so on, as well as good social environment with good public order.

All these are important factors to attract foreign businessmen.

However, what is the desire to get a slice of Dongguan in the pformation of Huaian?

"3-5 games a day."

According to people in charge of investment promotion.

Will there be no "hollow" and "double pformation" in Dongguan, which will make Dongguan "hollow"?

Yesterday, "two sessions", when interviewed by our newspaper reporter, Liu Zhigeng, Secretary of the Dongguan Municipal Committee, made it clear that Dongguan was not worried about "hollow".

It is understood that in recent two years, Dongguan has introduced about 12000000000 US dollars of foreign capital.

"Dongguan will continue to promote economic and social pformation."

Liu Zhigeng said.

"Do not worry" does not mean "do not care".

Liu Zhigeng paid special attention to the current situation of Dongguan enterprises.

On the afternoon of the 8 th of this month, at the private economic work conference in Dongguan, Liu Zhigeng said that some places were constantly engaged in activities, and many activities were very large. It was not easy to find private enterprises to sponsor and the burden of private enterprises was too heavy.

Liu Zhigeng also stressed that as long as the development of private economy is favorable, the flexible policy should be flexible; as long as it is beneficial to people's entrepreneurship, it needs a green light to enable the masses to achieve their own businesses without obstacles and enable private enterprises to achieve independent development without hindrance.

Reduce the cost of starting a business and resolutely stop the struggle against the people.

In yesterday's government work report, Li Yuquan, mayor of Dongguan, admitted that Dongguan is still faced with problems such as irrational industrial structure, arduous task of economic development, increasing pressure on sustained and stable development, and urgent pformation of processing trade. We must properly handle the relationship between pformation and development.

After the meeting, when our reporter interviewed about whether it would lead to "hollowing out", Li Yuquan also repeatedly said, "no, it won't..."

He said, "double pformation", the emergence of enterprise mobility is very normal, the original industrial layout has not adapted to the development status of Dongguan, pformation is imperative.

At the end of the day, Li Yuquan said that some enterprises have to go, and there are other enterprises coming. There is no "hollow".

In the next industrial upgrading, two points can be clear: first, the idea of attracting investment in Dongguan will not change, but the project will change greatly. Second, on the basis of the original processing trade, we should speed up the pace of absorbing innovation and change the overwhelming majority of the existing raw material processing.

Yesterday, Jiang Ling, a member of the Standing Committee of the Dongguan Municipal Committee and vice mayor of Taiwan, interviewed by our reporter, also said that some enterprises with low added value pferred to other places because of the cost and other issues were understandable. Just as some enterprises such as Hongkong and Taiwan moved to Dongguan, Dongguan was in the period of pformation and upgrading.

"The government has been paying attention to and regulating the cost of increasing the burden of enterprises on arbitrary charges," Jiang said. At present, Dongguan is also considering how to serve some good enterprises to help some qualified and capable enterprises to upgrade. It is hoped that the relocation enterprises will pfer the production workshop to other places, but the headquarters, R & D centers and corresponding supporting facilities of the enterprises will remain in Dongguan.

It is reported that Dongguan is also making efforts to build outsourcing services, hoping to seize the first barrel of business services outsourcing.

Jiang Ling reflects that the advantage of service outsourcing is that the main body of investment is us, rooted in Dongguan, which is conducive to the sustained economic stability of Dongguan.

In addition, the development of the domestic market is reflected in yesterday's government work report.

Some people ask: profit is the nature of an enterprise. Why should enterprises abandon foreign markets and concentrate on domestic wars?

Jiang Ling doubts: to develop the domestic market, Dongguan has two considerations, one is realistic considerations and the other is strategic considerations.

The real consideration is that opening up a market more and more business, and opening up the domestic market does not mean giving up the international market.

Relying solely on the international market, once the international market is in trouble, enterprises will be unstable and Dongguan's economy will be affected. The strategic consideration is that China will rise to occupy the domestic market, and whoever will occupy the domestic market will grasp the future.