China Made Waking Up In The "Abnormal Withdrawal" Of Korean Enterprises

After more than ten years of golden development, the comparative cost advantage that China once had was slowly receding. At the beginning, the processing or trading enterprises that entered China with this advantage could not afford such a heavy burden.

Perhaps even the world's rigid fiber did not think that its fame in China would be 7 years after entering Yantai, Shandong. What they even imagined was the famous way. It was not because of what the Korean enterprise did at the local level, but because they staged the most successful collective night escape. In January 12, 2008, more than 10 South Korean managers left more than 3000 employees in the middle of the night.

In fact, South Korean enterprises' abnormal withdrawal from China is by no means the first time this year.

According to figures provided by the Korean Consulate General in Qingdao, the unauthorized withdrawal of Korean enterprises in Shandong started in 2003 and has not happened before.

21 occurred in that year, 25 in 2004, 30 in 2005, 43 in 2006, and 87 in 2007, up 1 times over the same period last year.

The analysis shows that the largest number of jewelry manufacturers in the Korean enterprises with "unauthorized withdrawal" are 63, while the rest are 33 garment factories, 28 leather factories, 14 suitcase factories and 13 shoe factories.

In the Pearl River Delta region, Taiwan funded enterprises and Hong Kong funded enterprises also appeared "abnormal withdrawal".

Many experts believe that these evacuated enterprises are basically labor-intensive enterprises, and most of them are small and medium-sized enterprises. When China enters the era of industrial upgrading, the survival of the fittest is inevitable.

Behind the "abnormal withdrawal" is that, whether it is Korean enterprises or Hong Kong funded enterprises or Taiwanese funded enterprises leaving the mainland, whether labour intensive or other types of enterprises, at least one thing is common, that is, the action response to China's increasing cost.

After more than ten years of golden development, China's comparative cost advantages are slowly receding. At the beginning, the processing or trading enterprises that entered China as an advantage could not afford such a heavy burden.

The abnormal withdrawal of foreign-funded enterprises is just an abnormal reaction to this, which reflects the changes of China's economic environment.

Faced with this change, foreign enterprises can still "escape", and local enterprises are not so lucky.

From 2006 onwards, China began to feel the intensive bombing of anti-dumping, textiles, footwear, lighters, candles, toys, agricultural products and so on. Chinese manufacturing began to encounter crises worldwide.

The rapid deterioration of the foreign trade environment has made it difficult for the labor-intensive enterprises in China to survive, and even the extreme incidents of the bosses being forced to commit suicide.

Bottleneck in the people's "expected" to complete the "break 7", the dollar still maintained a "stubborn" devaluation trend, the deep impact of the sub-prime crisis in the United States has emerged (many Chinese enterprises sent the United States found that customers have closed down is the best proof), the rise of labor force, high oil prices, even the high CPI, all kinds of adverse factors seem to meet overnight, so that China has not yet prepared for this psychological preparation enterprises feel the "rain coming" suffocation.

"Survival or death, this is a problem!" Hamlett's voice echoed through the hundred years of time in the sky of China today. Perhaps this is also the problem that countless small and medium business owners are suffering today, though it is so helpless.

According to statistics, 1/3 of the shoe industry enterprises in the Pearl River Delta region have been closed down, and more than 40 lighters enterprises in Wenzhou and other places are at the edge of crisis.

In Wenzhou, Suhang and other places where factories once stood, many factories have been defeated, far from the initial bustle and prosperity.

The statistics of foreign trade released by the Ministry of Commerce in February showed a sharp drop in China's import and export volume.

According to the latest data released by the National Bureau of statistics in March, CPI has reached a record high of 8.3%.

Sharp environmental changes have made Chinese enterprises, especially growth oriented small and medium-sized enterprises, feel the crisis of survival.

Walking southward? Westward? There is only one way to die, and the way of existence can be chosen.

In this self rescue, some enterprises have chosen to run away and some enterprises have chosen to upgrade themselves.

The path of pfer has been tried, or down to Nanyang, or to the West.

Many Nanyang enterprises take Vietnam as their first choice, not only domestic enterprises, but also foreign capital enterprises often choose Vietnam when pferring China's capacity.

In addition to the similar economic system, operation management mode and cultural customs, the low labor cost is no doubt an important option for them to consider. At the same time, Vietnam's economic development is almost behind China's ten years of Vietnam, and the investment attraction in various places is also increasing. Preferential policies have also become the considerations of foreign enterprises entering Vietnam.

Not long ago, "contemporary managers" interviewed in Vietnam saw that many Vietnamese local governments were introducing various tax and land preferential policies to attract funds. Many Chinese enterprises invested in Vietnam also said that because it was hard to get such a cheap place in China, and it was difficult to have such preferential tax policies, Vietnam was still very attractive, especially for labor-intensive enterprises.

However, Vietnam's labor costs have also risen rapidly in the past two years.

"Contemporary managers" learned that in 2007 Vietnam's workers' wages had risen to about 600 yuan compared with before. Moreover, because of Vietnamese laws, the enterprises in Vietnam paid much more overtime wages than our country, generally three times daily wages, and strikes occurred frequently. Compared with domestic ones, these hidden costs were not low.

Moreover, with the wage rate rising in Vietnam, it may not take ten years, and their labor cost will reach the level of the domestic level. By that time, we do not know where the South going enterprises should turn. Compared with the next Nanyang, many people are more willing to turn to the West.

Although the strategy of "western development" has been put forward for many years, and the policies and measures have also been promulgated, there are not many substantive actions at the enterprise level.

Nowadays, under the pressure of upgrading and upgrading of the eastern region, many enterprises have to shift the Western agenda to the agenda, which is not a good thing for the echelon development of China's eastern, central and western regions.

According to reports, in view of the present situation of industrial pfer in the Pearl River Delta region, some provinces in Jiangxi have sent personnel to Dongguan, Foshan and other places for attracting investment, and even Sichuan province has mobilized the whole province to make preparations for the industrial pfer in the Pearl River Delta region.

In the long run, industrial pfer is only an effective allocation from an industrial perspective. From an enterprise perspective, upgrading the competitiveness of products from low to high value-added products is probably the safest way to survive.

Because, for enterprises, even if they dodge the doom of backward production capacity and move to a relatively low cost area, five or ten years later, the upgrading of the eastern coastal areas will probably be their tomorrow. Then, where will they turn to? Do fine products, make products stronger, strengthen the brand and consolidate the market. This is the foundation and capital for enterprises to face industrial risks.

Swiss enterprises undoubtedly provide a reference for Chinese enterprises. As is known to all, Switzerland is famous for its strong innovation ability, and Swiss enterprises are taking root and even fruits in various countries around the world. It is the way of innovation that enables them to hold their own territory, no matter big or small, around the world.

Precise positioning, four faced marketing, deep ploughing and meticulous products make Swiss products gallop in the international market.

Their internal strength is worth learning and practicing in Chinese enterprises.