Looking At The Pformation Of Dongguan's Economic Strategy Through The Shift Of Shoe Companies

Dongguan's industrial pfer is not as serious as some media reports, but the situation is not optimistic.

The pfer of shoe enterprises is continuing. "Now is the most difficult time for Dongguan shoe manufacturers.

RMB appreciation, raw material prices, labor costs and other factors have made shoe manufacturers' costs rise by more than 20% at a time. Especially for export-oriented shoemaking enterprises, exports mean losing money. Many enterprises can not resist market risks and have to choose to pfer or stop production.

Fang Zhigang, President of the Hongkong footwear industry association, said in an interview with our reporter recently, "we also try our best to organize enterprises to work together to deal with this crisis, and actively explore how Chinese shoe companies can expand their overseas markets in a high cost environment.

We are also talking about improving procurement prices through negotiations with the buyers, but these efforts are difficult to change the dilemma faced by shoe companies in the short term.

Moreover, as global raw material prices continue to rise, buyers are also having a hard time. If they are pferred to them, they will still be unable to bear it.

What we are doing now is to work hard and wait for the environment to improve.

"Fang Zhigang also told reporters that he predicted that the peak shift of shoe enterprises has not yet arrived, because many enterprises have not yet completed the order of last year, and there will be a large number of shoemaking enterprises leaving Dongguan in 2008.

In particular, the pressure on foreign trade enterprises is greater. It is very difficult for foreign trade enterprises to turn to domestic trade. There are great differences in mode, channel and so on. It is better to build another factory.

In addition, according to Fang Zhigang's data, the enterprises that are moving out now are choosing relatively low cost areas, because China's cost growth is very fast. Many enterprises choose neighboring countries such as Vietnam and Kampuchea, where preferential policies and low labor costs are more suitable for labor-intensive enterprises.

Although the situation is grim, Chen Zhongqiu, mayor of Houjie Town, has not been overly worried. He said in an exclusive interview with our reporter that the pformation and upgrading of the manufacturing industry is a more realistic problem facing the Pearl River Delta.

Houjie is facing great opportunities and challenges in the strategic pformation of manufacturing industry. We have made preparations.

Chen Zhongqiu said that the development of the manufacturing industry in the Pearl River Delta benefited from the reform and opening up 30 years ago.

30 years later, not only the economic environment of the Pearl River Delta is different, but also the economic environment of China and the whole world has changed. Extensive economic development mode is no longer suitable for the development of productive forces in the Pearl River Delta region. Industrial adjustment has become an inevitable choice.

Some enterprises that are not suited to the needs of the development of productivity and do not meet the requirements of environmental protection do not necessarily have the competitiveness of the market. Enterprises with science and technology, environmental protection, tax and headquarters will be encouraged and supported, and will continue to grow.

"The key issue is not whether or not to pfer, but how to pfer and what problems to solve.

"Chen Zhongqiu told reporters that due to the simultaneous influence of internal and external factors, coupled with the large number of small and medium-sized enterprises, Taiwan funded enterprises and Hong Kong funded enterprises in Dongguan, the difficulties of industrial adjustment are relatively large, especially to some low-end enterprises, but this has not changed the trend of Dongguan's economic development.

According to our understanding, many large enterprises, technology enterprises and competitive enterprises are still aiming at the investment environment in Dongguan and intend to enter Dongguan. They will bring new vitality and greater development space to Dongguan.

Chen Zhongqiu also pointed out that after the economic globalization, industrial pfer will not stop. The whole of Asia still faces the opportunities and challenges of the world's industrial pfer.

On the one hand, we should rationally treat industrial pfer; on the other hand, we must seize the opportunity to build our core competitiveness and undertake a new round of higher level industrial pfer.

Foreign capital enterprises are pferring the leading role in the industrial pfer of the Pearl River Delta, and the foreign-funded enterprises based on "three to one supplement" have become the protagonists of the pfer.

"The biggest impact of the appreciation of the renminbi is on the basis of our processing trade oriented enterprises.

At the beginning of last year, the net profit rate of shoemaking enterprises was only 5%-8%, and the export process of footwear industry needed about half a year. From last year to now, the appreciation of RMB exceeded 10%, and the order of shoe-making enterprises half a year ago was faced with no profit in the settlement of foreign exchange, which made it impossible for all shoemaking enterprises to take orders easily, and the more orders they received, the more enterprises would compensate.

"A business manager of a shoe-making enterprise in Hong Kong told reporters that many of his colleagues in Dongguan have been discontinued, and they have plans to move.

Statistics show that Dongguan is the largest shoe making base in China, and Houjie Town is the most concentrated town in Dongguan, which is known as the "shoe capital of China".

There are about 1500 shoe making enterprises in Houjie, about 2000 shoe making enterprises, 3500 other shoe materials, leather and hardware shops, nearly 2 million employees, and 1 billion 500 million pairs of shoes per year.

More than half of shoe manufacturers in Houjie are export oriented, many of which are Hong Kong and Taiwan funded enterprises based on "three to one subsidy".

Reporters visited the shoe-making industrial area, found that a large number of enterprises are in a state of closure.

Reporters also learned that some foreign-funded enterprises that had carried out the "three to one complement" operation were voluntarily evacuated, and the speed was very fast and concentrated.

A local shoe business owner told reporters that these enterprises are mainly thinking about making money, where there is no money to make money will go elsewhere.

They are very sensitive to factors such as appreciation of the renminbi, rising costs and rising labor costs. In pursuit of profits, these factories will pursue the cheapest development environment and preferential policies. In fact, before the tide of the Pearl River Delta, they will have experienced the pain of moving from Taiwan.

"They are just a group of migratory birds pursuing the biggest profit and the lowest cost.

"Dongguan Footwear Association vice president Qi Yaochang said.

In his view, it is not worth worrying about the relocation of enterprises that are not rooted in the local and duckweed.

Enhancing competitiveness is the key to survival and development. "Not all shoemaking enterprises have no living space in Dongguan.

Only enterprises without innovation ability are not suitable for environmental protection requirements, and enterprises that are not suitable for industrial layout will be eliminated. "Chen Zhongqiu said:" we eliminate enterprises that are not competitive in the market. These enterprises occupy a lot of resources and labor force in Dongguan and destroy the environment. We need to make room for more competitive and high-quality enterprises to improve the economic structure of Houjie town.

In Houjie, there are three kinds of enterprises that we welcome, one is headquarters type enterprises, the other two are technological enterprises and three are modern enterprises.

Such enterprises have strong competitiveness, core technology and sustainable development capability.

For example, the world shoe industry (Asia) headquarters, which is about to start construction, is a headquarters base integrating R & D, trade and technology.

It will effectively promote the upgrading of the footwear industry.

"Chen Zhongqiu believes that labor-intensive enterprises are not equal to enterprises that are to be eliminated. If these enterprises have the ability to innovate and have the international competitiveness of the industry, they are also welcome.

Nowadays, it is irrational for some enterprises to blindly move outward to find cost depressions. They should put more effort into enhancing the core competitiveness of enterprises.

As a labor-intensive shoe making enterprise, leaving China has no future.

Because only China has a good industrial foundation, complete supporting facilities and sufficient labor force, it can organize large-scale labor operation. These advantages are not available in other countries.

Although there are advantages in some countries' policies and manpower costs, other kinds of supporting facilities are not complete, and all kinds of other costs may increase.

Therefore, enterprises in the industrial adjustment vortex should think rationally, enhance the core competitiveness of enterprises, and seek ways of sustainable development.