Garment Processing Industry In Guangdong Province Faces A Dilemma Of "Rushing To The Customs"

"The workers in Vietnam and Burma heard that a few dollars a month, and many of them went there." Chen Wenmin, manager of Weiyi garment factory in Lixia Town, Chenghai District, Shantou, with a strong Chaoshan accent, said this year's orders dropped by at least 30% compared with the same period last year.

Data show that in the 1-7 month of this year, the total value of import and export trade in Guangdong Province increased by 5.7% compared with the same period last year, which is lower than the national growth rate of 7.1%.

Eastern Guangdong usually refers to the eastern part of Guangdong Province, including Shantou, Shanwei, Chaozhou and Jieyang.

Here, Chaoshan and Hakka people live together and become an important part of Guangdong businessmen. The region has gathered a large number of small and medium-sized enterprises, mostly family run.

Since the beginning of reform and opening up, with the opportunity of Shantou becoming a special economic zone, the small and medium-sized enterprises in Guangdong Province have experienced a rapid development, but then they have gradually walked behind the times due to some quick success and instant benefits.

In recent years, more and more small and medium-sized enterprises in eastern Guangdong have re established themselves in industry. But the successive financial crisis and European debt crisis made them stand at a crossroads once again.

　 　 clothing The processing industry is in a dilemma.

The garment processing industry, which is mainly based on OEM, is facing a dilemma in the face of some manufacturing trends in Southeast Asia and the downturn in European and American markets.

"We haven't worked overtime for a long time," said Chen Wen Min, manager of Weiyi garment factory in Lixia Town, Chenghai District, Shantou.

Chen Wenmin is 69 years old, dark and thin, with deep and dense wrinkles on his face. At the age of happiness, he still worked with workers on the production line every day.

This is his 20 years of experience.

Weiyi garment factory is a Hong Kong funded enterprise, mainly OEM production. Clothing export Europe, Southeast Asia and other places, is a typical processing trade enterprises.

Liu Wensheng, the administrative assistant of the factory, has always been making a steady stream of orders with the advantages of high quality, fast delivery and low cost.

Two certificates were hung on the wall of the conference room, which is a letter of appointment from the well-known brand Esprit, which has been listed as "preferred supplier" for two consecutive years.

Liu Wensheng pointed to the certificate and was proud. Like Chen Wenmin, he has been working here since he built his factory. Nearly half of the 300 workers in the factory are older workers who have worked for more than ten years.

From the end of last year, things were going downhill. "Big single change small single, some time this year, there is simply no single. We have already begun to make the order in October. Some orders have little profit margin, so that they can keep workers' jobs, "Liu Wensheng said.

"Since last year, it has increased by 10%, and 2000 yuan per month is not available for people to eat and lodging. The workers in Vietnam and Burma have heard that they have a few dollars a month, and there is still a rebate for their clothing export, so many of them have gone there," Chen Wenmin said. Coupled with the downturn in the European market, Weiyi garment factory's orders this year dropped by at least 30% compared with the same period last year.

Most of the garment processing industries in eastern Guangdong are mainly OEM.

According to Chen Wenmin, there are several family workshops around. Garment processing The business has gone bankrupt.

They also want to transform and upgrade, but only stay in the "think" stage. "It's not easy to build an independent brand. We need a sales team. Designer And we must look at the market. We have no ability to invite such talents. " Liu Wensheng said, "we have been confined to the original production mode and are in a dilemma."

They have tried many ways. The boss of the Hongkong head office is constantly talking about new brands, and factories are trying to pick up orders that are small but technically demanding. At the same time, the government has also provided some supporting policies, such as reducing charges for products, but in the face of strong external factors, these efforts have had little effect.

"We can't change it. We can't change it. We can't wait." Chen Wenmin said, "I can't think of what to do, and I dare not think about it in the future." His eyes were red.

Brand makers need to be careful.

Some enterprises that have completed the industrial transformation and upgrading ahead of schedule have begun to plan carefully under the pressure of the crisis.

It is also in Lian Xia Town, the situation of Yihua wood Limited by Share Ltd in Guangdong is different from Weiyi garment factory. The small woodworking workshop, which started in 1987 by 800 yuan, is now a listed company, and its output value is 2 billion 700 million yuan in 2011.

Liu Zhuangqing, vice chairman and general manager of Yihua Wood Industry Co., told reporters that 26 of the high-end furniture produced by the company was exported to the United States, Europe, Australia and other places, of which the share of the United States accounted for 90%.

In 2010, Liu Zhuangqing, who studied in the United States for many years, returned to his hometown and took over the business from his father.

Liu Zhuangqing admired his father very much. "My father is a very farsighted man. Since 1996, we have established our own brand. Compared with the passive situation of OEM furniture companies, our brand has long stopped in foreign markets.

As a "two out" manufacturing enterprise, Yihua also inevitably has the pressure of raw material and labor cost rising. The price of imported high-grade timber has increased by 10%-15% in the past year, and labor cost has risen by about 10%. In this regard, researchers at the company's R & D center and the teachers in the factory have tried many ways to improve the efficiency of raw materials utilization.

In the factory of Yihua, the reporters saw that the workers would reuse the remaining wood to make use of the mortise and tenon structure to make use of it repeatedly, thus saving wood and making furniture more firm and not easy to deform. They will also use furniture, such as scaffolds and accessories, to make use of domestic fast-growing trees instead of imported timber without affecting the quality.

Chaozhou Guangdong four way Group Co., Ltd. is also a successful example of transformation and upgrading of traditional industries.

Chaozhou is the largest producer of ceramics in China, and there are more than 10 thousand ceramic manufacturers. In 2003, when large and small ceramic enterprises in Chaozhou lay a large number of waste porcelain in the factory and became a headache industrial waste, the four party, with the support of the government, began to explore how to recycle these wastes.

The porcelain waste rate in the ceramic industry is about 10%. Due to non degradation, waste porcelain causes great pollution to the environment.

Cai Zhentong, deputy general manager of four links, said that the company and professional research institutes have focused on solving the problem of insufficient viscosity in the process of waste porcelain recycling, and finally successfully implemented the technology and extended it to other ceramic enterprises for free. "At present, 30%-35% in our raw materials is recovered from waste porcelain, which is totally different from ordinary ceramics, and the cost is reduced by 10%." Cai Zhentong said.

SME exports are under impact

Under the background of shrinking external demand and increasing comprehensive costs, SMEs are facing a series of difficulties and exports are under attack.

Shantou Customs released in August this year, "small and medium foreign trade enterprises in Guangdong Province Research Report" shows that in 2011, the region has 3825 enterprises with import and export performance, of which the value of imports and exports is less than US $45 million, accounting for about 98.6% of the total business. A large number of small and medium-sized foreign trade enterprises and occupy an important position are a major feature of the outward oriented economy in eastern Guangdong.

These enterprises face a series of difficulties under the background of the current world economic weakness and the continuous evolution of the European debt crisis.

Data show that in the 1-7 months of this year, the total value of import and export trade in eastern Guangdong was 12 billion 160 million US dollars, up 5.7% from the same period last year, which is lower than the national growth rate of 7.1%.

In the interview, many enterprises reflected that the external factors such as the European debt crisis, in addition to the direct impact of shrinking external demand, also triggered some chain reaction.

In February this year, the European Union announced anti-dumping investigations on ceramic tableware and kitchen utensils exported to Europe, amounting to 700 million US dollars. The European Union is the largest export market for Chaozhou ceramics, with more than 200 enterprises involved in Chaozhou and 180 million US dollars involved. The four way is one of them. The 60%-70% used in its daily ceramics is exported to Europe.

"From June this year, European orders began to decrease. By August and September, some customers did not even make the order, that is, let the anti-dumping act." Stone Company chairman Cai Zhencheng said. In response, the four party transferred 30% of its products to the US market and is ready to respond positively.

Guangdong Jinming precision Limited by Share Ltd is the indirect victim of the US sanctions against Iran. Ma Zhenxin, chairman of the company, told reporters that since the settlement of international trade was blocked, two sets of film blowing equipment valued at 20 million yuan from Iran were unable to be delivered, and so far it has been stored in its factories.

Customs to help enterprises

Shantou customs will focus on small and medium enterprises in East Guangdong as the focus of transformation and upgrading, and strengthen law enforcement guidance and policy support to help enterprises.

In view of the bottlenecks and difficulties in the development of small and medium-sized enterprises, the national and local governments at all levels have introduced a number of preferential measures in recent years.

Guangdong has released some policies and measures to support the development of small and medium-sized enterprises in 2012 this year. Shantou customs also takes the small and medium enterprises in East Guangdong as the focus of transformation and upgrading, with service promotion as the guidance, and strengthens law enforcement guidance and policy support.

Meng Yang, Commissioner of customs and excise of Shantou, said that since last year, it has taken a number of initiatives to support the development of small and medium-sized enterprises in the area, including guiding enterprises to introduce advanced equipment with tax reduction and tax policies, implementing the national mortgage loan policy, further simplifying the follow-up approval procedures, and encouraging small and medium-sized enterprises to record their own brands at customs and help them maintain their own intellectual property rights.

Shantou ultrasonic printed board company is the beneficiary of the customs tax reduction equipment policy.

"In the past few years, our company enjoyed a national tax relief policy and imported a batch of self-produced production equipment. Later, because of the huge demand for expanding production funds, they wanted to apply for loans from banks. When the customs officers announced the policy, they told us that they could use the equipment as collateral to apply for loans to the bank, which greatly solved the problem of insufficient funds in the course of the development of the company. Huang Zhidong, general manager of the company, told reporters.

The Stone Company passed the customs brand filing system and scared away the "Li Gui".

"Before our brand was put on customs, three or four local businesses copied our exports and we couldn't help them. Last year, we applied to the Customs for brand protection, and those counterfeit products could not be cleared. Company chairman Cai Zhencheng said.

First line clearance promotes convenience

In addition to policy support, Shantou customs also strengthened the first line customs management based on enterprise classification.

"The vast majority of production enterprises in eastern Guangdong are law-abiding and honest, and their products are specially refined." Meng Yang said, "only to change the long-standing prejudice against them, and to overcome the adverse effects of their own and external factors, SMEs in eastern Guangdong have a long way to go. If we want to succeed, it is very difficult to rely on our own efforts, and we need more support from the government. "

In addition to policy support, Shantou customs also strengthened the first line customs management based on enterprise classification.

According to the relevant provisions of the current customs classification management method, category A and AA enterprises are high credit law-abiding enterprises, which can enjoy certain convenience and preferential policies. For example, customs clearance procedures can be enjoyed by Customs for customs clearance procedures, so as to encourage enterprises to standardize the development of business and integrity.

Jinming precision machine was awarded the AA credit rating of Customs in 2011, which became a "golden signboard" of the company. Sealed Air, the top five hundred packaging materials and equipment manufacturer of the United States, learned that Jinming signed a production order of about one million US dollars after its credit rating and processing capacity in China.

According to Meng Yang, the management concept of "enterprise and transitivity" is implemented, and the linkage mechanism of normalization between enterprises and enterprises is established. A "one to one" liaison Company is designated to track the operation of enterprises and the basic situation of import and export of goods.

Ultrasonic printed boards often receive urgent orders from printed circuit boards in Japan, and they are usually only one week from purchasing, making copies to assembly. "We often rush to work until 89 o'clock in the evening, or even eleven or two o'clock. No matter how late the customs officers are, they help us check the customs. Otherwise, it will not be able to deliver goods today, and tomorrow will not catch up with the planes to Japan. Huang Zhidong said.

Giving priority to modern industries

In order to better assist SMEs in transformation and upgrading, Shantou has decided to give priority to modern industries.

As a special economic zone in the eastern part of Guangdong Province, the resources and environment of Shantou are not ideal for the development of enterprises.

Zheng Renhao, mayor of Shantou, said that in order to better help transformation and upgrading of small and medium-sized enterprises in the city and solve the outstanding land supply constraints, the city decided to give priority to modern industries and give priority to supporting the expansion of listed companies and hi-tech industries.

Due to the fact that there are too many people in Shantou, some small and medium-sized enterprises are facing land constraints in the process of increasing capital and expanding production, which has made the enterprises bigger and stronger, and even a few enterprises have to move out.

In response to this situation, two years ago, Shantou proposed the "four industries" plan, namely, upgrading traditional industries, speeding up the modern service industry, doubling the strategic emerging industries and the blue ocean development plan, and guiding the SMEs to take the initiative to transform and upgrade the level of technological innovation through policy guidance.

"Shantou has limited space, resources and land. It is impossible to develop those industries with high pollution and environmental demand. The enterprises that have a bright future can grow and expand by supporting policies. Some industries seem to be a sunset industry, but they will always be a sunrise industry through continuous technological and informationalization, "Zheng Renhao said.