Restricting Factors Highlight The Hollowing Out Of Dongguan'S Shoe Making Industries.

In the early years, a large number of Hongkong and Taiwan funded enterprises were stationed in Dongguan to promote industrialization and urbanization in Dongguan. At the same time, Dongguan was basically "solidified" on the low cost OEM. Under the condition that the proportion of state-owned and collective enterprises was very low and private enterprises did not fully grow up, industrial upgrading was very difficult, and Dongguan's economy grew rapidly for 20 consecutive years. Dongguan, which was known as "rich and hostile province", had a new low growth rate in 2007.

Dongguan mayor Li Yuquan said that Dongguan's GDP in 2007 is expected to reach RMB 315 billion 100 million yuan, an increase of 18.1% over the previous year, lower than the average growth level of Guangdong, and the growth rate of GDP in 2008 is estimated to be about 14%.

The myth of Dongguan's economic development is facing challenges.

Dongguan has become one of the world's largest processing bases.

At present, foreign businessmen in Dongguan come from more than 30 countries and regions, accounting for 60% of the 1.4 million foreign businessmen and more than 8000 of them.

"If the traffic jam on the highway from Dongguan to Shenzhen, 70% of the world's computer products will be out of stock," said a senior executive at IBM Asia.

However, according to recent statistics, the number of foreign-funded enterprises shutting down factories and businesses in Dongguan has increased year by year.

In 2006, the number of foreign-funded enterprises closed in Dongguan was 1003, an increase of 30% over the previous year and an upward trend in 2007.

This data shows that Dongguan is experiencing industrial relocation, and new industries have failed to fill in, and there has been a crisis of industrial hollowing out.

Liu Zhigeng, Secretary of the Dongguan municipal Party committee, also pointed out that various contradictions restricting the development of Dongguan are increasingly prominent.

Taking resource shortage as an example, the land available for the current accounts for less than 10% of the total area of the city. In accordance with the current consumption, it will be depleted within a few years, and more than half of the city's streets will be water tight.

The latest labor market guidance price announced by the labor department in Dongguan has led enterprises to substantially raise their salaries this year. According to the latest guidance, the average monthly salary of workers with professional qualifications in technical schools and technical secondary schools in Dongguan should be 3200 yuan, which is 1.7 times higher than the 1150 yuan monthly salary announced in the previous year.

At the same time, the salaries and salaries of the bachelor degree and master's degree recommended by the guidance also increased by about 70% compared with the previous year.

Labor costs have risen significantly, and Dongguan's enterprises are pulling out of Dongguan in recent years.

For example, Taiwanese businessman Guo Shimin has invested in electronics in Dongguan for 20 years.

In 2005, he had 5 workshops in Dongguan. Now two have moved to Kunshan, and one is moving to Hangzhou.

Guo Shimin said that the production conditions in other areas were better. Besides the reasons of land, environmental protection, labor prices and so on, the industrial support has also been greatly improved, and the humanistic environment is better than Dongguan.

"In Dongguan, after dark, my family and I try not to go out. In Kunshan and Hangzhou, at 12 in the evening, my wife and I will go out for a walk."

Industrial Hollowing is not fate. In recent years, the mainland has adjusted the mode of economic development and asked the Pearl River Delta enterprises to upgrade their industrial technology content and create their own brand. This new thinking puts Dongguan in an awkward position.

Dongguan economic and Trade Bureau official admits that industrial upgrading is not easy for Dongguan.

"A large number of Hong Kong and Taiwan funded enterprises in the early years have rapidly promoted the industrialization and urbanization of Dongguan, but at the same time, Dongguan has been basically solidified" on low cost OEM ". Under the condition that the proportion of state-owned and collective enterprises is very low and private enterprises have not fully grown up, the upgrading of the industry is very difficult.

Some experts believe that we should not just see how much we have shut down and how much we have moved out, but whether the industry has undergone internal structural changes, which may mean that the industry is shuffling.

As far as shoe industry is concerned, the judgement of Zhang Huarong, chairman of Huajian group, is that the shoe industry in Dongguan has stood to the new round of shuffling and development.

Tao Feng, a doctor of industrial economics at the school of economics, Jinan University, has maintained a modest optimism for closing and relocation. It is beneficial for the whole industry to eliminate a small number of enterprises with weak competitiveness and retain strong enterprises through competition.

"The prospect of this shift is optimistic. We should divestiture all the assembly and manufacturing links in the industrial chain, and take Dongguan as an order center and R & D center as the headquarters of the enterprises, which is conducive to Dongguan's industrial upgrading."

But at the same time, he warned, "if there are not enough enterprises to keep headquarters here, and not enough enterprises to realize industrial pformation and upgrading, this place is likely to be hollow."

For Dongguan, this is a crossroads.

However, Liu Zhigeng seems to be prepared for this. He has pointed out that in the process of industrial upgrading and pformation, the danger of Industrial Hollowing is there.

But not every area will be hollowed out in the process of industrial upgrading.

Will this problem arise? The key is whether to actively promote industrial upgrading or passive acceptance of industrial upgrading and pformation.

Dongguan is pushing forward the idea of double pformation. It is to adhere to the combination of government guidance and enterprise leadership, eliminate a batch of consolidation with a combination of consolidation, pfer a batch of directionally out of a batch with the introduction of a number of high standards, combine the "withdrawal two" with a group of "entering three", cultivate a batch with a strong batch, and strive to achieve remarkable results through the efforts of 5 years in Dongguan's industrial informatization, scale, sophistication, autonomy and localization.

In this process, the goal of Dongguan's urban development is still a famous modern manufacturing city. Strengthening and upgrading the advanced manufacturing industry is still the focus of Dongguan's work.

Therefore, Liu Zhigeng believes that Dongguan will not be hollowed out in the process of double pformation.