Wenzhou'S Private Capital Corps Overseas

Moving from south to East, Wenzhou's capital movement has always been a reflection of the Chinese people.

Today, they are sending overseas troops, or clinging to small shopping malls to throw goods on the ground, or recruiting troops to build gardens for mining.

In the meantime, there are many legendary legends of earning a full pot, and also a painful experience of breaking arms to survive. But they either win or lose, which are filled with a kind of inspiring passion, and their investment efficiency is also reassuring. After all, it is their own business -- this is the charm of private capital.

Over the next two months, more than 30 Wenzhou business owners will start their trip to Southeast Asia.

They will inspect 3 overseas industrial parks awarded by the Ministry of Commerce: Vietnam Longjiang Industrial Park, Kampuchea Luo Yong economic and trade cooperation zone and Pakistan Haier economic zone.

These bosses are the first group of enterprises organized by the Wenzhou Municipal Foreign Trade and Economic Cooperation Bureau.

"Now companies want the government to organize more overseas visits."

Ye Yi, the Wenzhou foreign trade and Economic Cooperation Bureau, said that the "Southeast Asian tour" registered more than 70 entrepreneurs, mainly from shoes, leather, textiles, clothing, furniture and other labor-intensive enterprises.

Driven by multiple factors such as rising domestic production costs and increasing macroeconomic regulation and control, Wenzhou capital began to "pfer" overseas in recent two years -- establishing processing enterprises, industrial parks, and developing energy resources and real estate abroad.

According to statistics of Wenzhou foreign trade and Economic Cooperation Bureau, a total of 153 enterprises in Wenzhou set up overseas companies from 2006 to 2007, accounting for about 20 of the total 1/3 since 1986.

"Wenzhou capital has once again taken the lead in the country". Ma Jinlong, an investigator of the Wenzhou Municipal Policy Research Institute and a professor of Wenzhou University, believes that the internationalization of Wenzhou's capital has continued the first mover advantage of Wenzhou's private economy, and the "Wenzhou model" standard is changing from GDP to GNP.

Commodity City broken arm to survive, "the price is too bad, the market has done rotten", "the difference is too big", talking about the business of 10 years ago, one of the founders of Cameroon overseas Chinese business association, Cameroon "China Mall" Chairman Wu Jianhai sighed.

In 1994, Wu Jianhai, a native of Wenzhou, came to Cameroon to sell Chinese products. After 5 years, he founded the "China Commodity City" in the Douala commercial center, the largest city in Cameroon.

"At that time, we issued a container commodity, we could earn a container, and the money was doubled."

He said.

But good dreams no longer exist.

Wu Jianhai said that now shoes and clothing, the profit of overseas sales is only about 20%, some people are not well matched in delivery, or even lose money.

The main reason for the sharp drop in profits is that products are too saturated. Most of these products come from China.

"The price is very fierce and the price increase is very difficult."

Wu Yue, some of his relatives are doing business in Spain and other countries.

This is indeed a universal phenomenon.

Huang Jianwen, President of the Wenzhou Association of South African countries, said that "China made" cheap clothing, leather shoes and department stores all over South Africa's supermarkets, and their profit margins were less than 1/10 8 years ago.

Wu Jianhai and Huang Jianwen both believe that China's export labor-intensive products are no longer popular.

"Selling these products is nothing, just a bit better than working."

Huang Jianwen said.

In search of cheaper goods, Huang Jianwen's partners in South Africa have abandoned cooperation with Chinese businessmen and turned to Southeast Asian countries such as Vietnam and Thailand.

Against this background, Wenzhou's export growth has also seen a slight decrease.

According to statistics, Wenzhou's export volume was 690 million US dollars in February this year, a decrease of 17.91% over the same period last year.

Among them, the export of footwear, clothing and accessories decreased by 24.54% and 35.95% respectively.

From the data analysis, the effect of overseas Wenzhou people pulling exports is obviously weakened.

While Chinese goods are losing competitiveness, they also let Wenzhou businessmen, previously advocating the offshore Commodity City, face a blow before.

Since the establishment of the first overseas Chinese mall in Wenzhou in 1998, Brazil St Paul China Mall, Wenzhou businessmen have established 15 overseas "China Commodity cities" in many countries such as Cameroon, Russia and Holland. A total of more than 400 Wenzhou enterprises have entered the field of operation, and as a result, the total export of domestic commodities has reached 2 billion 500 million US dollars as of 2006.

"The price is too bad, the market has been rotten."

Wu Jianhai said that their main energy is not to make the commodity city big, but to the upstream related industries.

If we don't go out, we will die early. It seems difficult to sell goods.

A few years ago, Wu Jianhai wrote a response report on "overseas construction of Chinese enterprises" and submitted it to the Chinese Embassy in Cameroon.

In this report, Wu Jianhai believes that in the Middle East, Africa, South America and other developing countries, the light industry foundation is relatively weak, and China's SMEs are promising.

"Chinese enterprises are mature in technology, machinery and equipment are available, but in China, they have little room for expansion."

Wu Jianhai said.

This has been recognized by the owner of a shoe leather enterprise in Wenzhou.

"If we don't go out, we will die."

The boss said.

In fact, in the trend of building factories overseas, the two forces are intertwined in the "upgrading" of Wenzhou people and the "going out" of Wenzhou enterprises in China. Thus, Wenzhou's capital outburst "cluster" erupts.

At present, in many developing countries, Wenzhou people have at least 100 enterprises. Their products are mainly distributed in shoes, leather, machinery, automobile and motorcycle industries.

In the developed countries of Europe and the United States, Wenzhou enterprises mainly enter the local market through mergers and acquisitions, such as the acquisition of Italy WILSON (Wilson) shoe making company by Harbin shoe industry.

Wenzhou capital not only exertion on traditional industries such as shoes and clothing, but also aims at high-tech and cultural industries.

If Wenzhou CHINT group will invest 120 million euros in Galicia, Spain, and build the largest solar power plant in Europe, Wen Shang Wang Weisheng also bought UAE state TV station, Al deer satellite TV and so on.

Wu Jianhai is no longer satisfied with opening a store and running a factory. He is considering establishing an industrial park in Africa.

He disclosed that he was talking about a project with an area of about 100 hectares of industrial park with a country in Africa.

"In this way, enterprises can get rid of the pressure of rising taxes, labor, land and other costs, and also solve the local tax and employment problems."

In fact, Wenzhou enterprises now have 3 overseas industrial parks in Russia, the United States and Vietnam.

At present, the 19 bid winning overseas cooperation areas of the Ministry of Commerce, Wenzhou enterprises occupy two seats, which are jointly invested by Wenzhou Zhejiang Concord leather company, Sichuan Sheng Sheng mineral company and Hai Liang group, Vietnam 105 million Longjiang Industrial Park, Wenzhou Kangnai group and Heilongjiang East Jixin industry and trade group jointly spent 2 billion yuan in Russia usurik economic and trade cooperation zone.

In addition, Wenzhou Yueqing Tongling science and Technology Group has established an industrial park in Atlanta, USA. The first phase project covers an area of about 1300 mu, with a total investment of 100 million US dollars. It is a high-tech industrial park.

Cai Changxin, the office of Tongling technology group, said that the project "three links and one level" has ended and will enter the stage of construction and investment.

"From the original individual, individual enterprises to overseas stall points, and now, a company and a number of enterprises jointly build factories and invest in industrial parks, indicating that the level of Wenzhou enterprises is constantly upgrading."

Xia Honglin, director of the Wenzhou foreign trade and Economic Cooperation Bureau, said.

"Mining building" villa is still on the drawings, you want to pay 30% of the money, the process of building the house to pay 30%, the repair of the house is completed.

Do you say it's better than China? "

In 2003, Huang Jianwen, President of Wenzhou Association of South Africa, worked hard to increase the volume of foreign trade in South Africa to 100 million yuan.

But he did not stop there and started a new plan: mine.

Just in those days, Huang Jianwen and two townships invested 20 million dollars in joint venture to acquire a 10 square kilometer copper mining right in South Africa.

So far, copper has brought Huang Jianwen huge profits.

His main energy is in mining and real estate development.

Huang Jianwen said that although most of the people outside Wenzhou are still engaged in traditional trade, Wenzhou people have begun to change their business ideas in the past two years, and have entered the capital intensive industries such as log cutting, mineral development and real estate investment.

In fact, the "fried coal group", which has attracted much attention before, is only one of Wenzhou's capital development areas in China.

Globally, many Wenzhou people are accelerating the development of offshore resources.

In Zimbabwe, Africa, the Central African energy company controlled by Wenzhou businessmen has obtained 99 years of mining rights for 25000 hectares of chromite in the Dyer area.

At present, there are about 70000000 tons of chromite ore with grade over 45%, and the total storage capacity is estimated to be over 2 trillion tons.

In Southeast Asia, Zou Qinghai, President of the Zhejiang chamber of Commerce in Vietnam, has also reached an agreement with the Vietnamese government to obtain a 20 year mining right of a chrome mine in Qinghua province. The total investment in the 3 phase is about 50 million yuan. It is reported that this is the largest private capital project in China.

Even in North Korea, there are many people in Wenzhou.

Wenzhou Guang Shou group has crossed the Yalu River, invested 6 million 50 thousand US dollars and the DPRK's Foreign Economic Cooperation Committee has jointly established the "Da Guang joint venture" to engage in molybdenum mining, mineral processing, production and sales.

Zhang, who is responsible for the project, said that due to the lack of electricity, the development of molybdenum mines will be carried out intermittently, and the focus of energy development will shift to Southeast Asia in the future.

A developing copper mine in Mexico is the largest overseas mineral investment project in Wenzhou.

The investor of this project is Wenzhou Dombo Investment Limited. Zhang Liping, the office, said that the plan was to pport copper ore to the mainland of China for further processing, and the finished products were mainly put into the Chinese market.

In addition, Wenzhou capital has made achievements in overseas logging, real estate investment and power generation projects.

Hu Jinlin, one of the "eight kings" in Wenzhou, now has not only a hydropower station with a monthly profit of more than 60 thousand dollars in Kampuchea, but also 150 thousand acres of forest development rights.

Wu Jianhai, a businessman in Ruian, Wenzhou, is well engaged in villa development in Nigeria.

"This country is poor, but there are so many rich people.

The villa is still on the drawing. If you want to buy it, you will have to pay 30% of the money. If you want to buy it, you will have to pay 30% for it.

Do you say it's better than China? "

Wu Yue.

Pan Pingping, deputy director of the Wenzhou Municipal Bureau of foreign trade and economic cooperation, said that the development of overseas resources has been included in the important work of the Wenzhou municipal government.

Pan believes that through the project library platform, about 400 billion of Wenzhou's private capital will play a role, and enterprises will go abroad to "gold rush".

In the event of any good projects at home and abroad, the "Consortium" can mobilize several billion yuan of funds. The emergence of the Sino Swiss consortium and the Chi Chi consortium is an important signal for Wenzhou's new round of economic integration.

Huang Jianwen revealed that many of the thousands of people in Wenzhou's hometown of South Africa joined together to form a "Consortium". Once there are any good projects at home and abroad, "Consortium" can mobilize several billion yuan of funds.

He said.

It is understood that similar "Consortium" is relatively common among overseas Wenzhou people associations, and there are many investments in various fields in China. "In the fellow townships, people are familiar with each other, and capital lending is relatively easy."

Huang Jianwen said.

Ma Jinlong, known as "Wenzhou local economist", believes that Wenzhou people have strong sense of entirety and investment, which is not in other places.

During this year's "two sessions", Shao Zhanwei, secretary and mayor of Wenzhou Municipal Committee, said in a media interview that at present, about 1700000 people in Wenzhou are distributed throughout the country, and there are Wenzhou chambers of Commerce in 159 cities, and 600 thousand Wenzhou people in 93 countries and regions.

In the process of overseas investment of Wenzhou businessmen, the call for the establishment of Wenzhou pnational enterprises began to heat up.

Wang Jianping, chairman of Wenzhou Hausa footwear industry, will submit a proposal on "creating a multinational enterprise in Wenzhou" in Wenzhou's "two sessions" shortly after.

Wenzhou enterprises are changing this direction.

Since the first overseas store was opened in Paris in 2001, in the past 7 years, Wenzhou Kangnai group has opened more than 300 overseas stores in New York, Milan, Venice, Barcelona, Berlin and other cities, and is preparing to open 1000 to 2000 stores outside the country in the next five years.

Another big shoe king, Wenzhou AOKANG group, was also in June last year.