Solving Problems And Policies To Guide PRD Enterprises

Faced with the reality of the relocation or relocation of enterprises, some scholars began to worry about the "hollowing out" crisis in the PRD.

But some scholars believe that the outside world has exaggerated the relocation of enterprises in the Pearl River Delta to a certain extent. The relocation of enterprises is only a labor pains in the pformation and upgrading of the Pearl River Delta. "Now every boss is having a headache and business is hard to do!" a staff member of a lighting factory in Zhongshan told reporters, "some factory owners are secretly leaving."

Headache is not just the boss of Zhongshan.

The latest statistics of Dongguan economic and Trade Bureau show that in the first half of this year, Dongguan's industrial profits above designated size appeared the first negative growth since 2001, and enterprises' development confidence was insufficient.

The factors that make bosses headache are from many aspects.

According to statistics, the first quarter of Guangdong's industrial goods prices rose 3.4% over the same period, the biggest single quarter increase since 2001; raw material, fuel and power purchase prices rose 8.1% year-on-year, the biggest single quarter increase in 2005.

The difference between the purchase price index of raw materials, fuel and power and the ex factory price index of industrial products increased from 3.2 percentage points in the previous quarter to 4.6 percentage points.

Expert analysis, after 20 years of development, the Pearl River Delta land resources are more scarce, labor costs are higher, tax and environmental regulations are more stringent, and the cost of energy and raw materials continues to rise. In order to maintain competitiveness, many enterprises have not significantly improved the wages of workers. Relatively expensive living expenses and relatively low income have made it difficult to attract a large number of mainland workers.

All this has led to the spread of enterprises in the Pearl River Delta.

Migration is not new. "There must be some pressure on the cost. Now everything is expensive, but we haven't had any relocation considerations yet."

Dongguan Houjie Shun Heng Shoes Co., Ltd. staff told reporters.

According to statistics from the footwear association of Asia, more than 1000 of the more than 5000 shoe enterprises in Guangdong went bankrupt last year. The remaining enterprises had about 25% factories in Southeast Asia, and about 50% went to factories in the inland provinces, while 25% of the enterprises were still on the sidelines.

Among them, 200~300 of the more than 1000 shoe making enterprises in Dongguan went bankrupt.

Since 2007, a number of "shoe factories" with insufficient internal force have disappeared from the industry after the export tax rebate reduction and the adjustment of processing trade policy, the continuous appreciation of RMB, the rapid rise in labor costs and the increasingly fierce competition in the footwear industry.

As one of the largest women's shoes manufacturing enterprises in China, Huajian group first realized that Dongguan's comparative advantage would be gradually lost. From the end of 2001, it began to try to adjust the layout of production. First, it invested in Jiangxi to build Ganzhou Huajian international shoe city, thus breaking some of its production and breaking the single production pattern in Dongguan.

One or two years later, we launched the relocation plan and set up two production lines in Vietnam.

Zhang Huarong, President of Huajian group, is very glad to get out of this step ahead of schedule.

Taking advantage of the low cost of production in Ganzhou, Huajian is currently pushing forward the industrial gradient pfer smoothly, pferring large quantities of low-priced shoes to Jiangxi, and the high-end shoes with small quantity, difficulty and high added value remain in Dongguan processing.

In fact, industrial pfer is not new in Guangdong.

In March this year, a special survey conducted by the Guangdong provincial foreign trade and Economic Cooperation Bureau showed that last year, the relocation enterprises in the Pearl River Delta mainly concentrated on small and medium enterprises and labor-intensive traditional manufacturing industries, focusing on industries such as hardware, toys, clothing, shoemaking, plastics and so on. Over 90% of them were enterprises in Hong Kong and Taiwan, and the sales volume of products exported to enterprises was 1 billion 214 million yuan.

The Hongkong Federation of industry has also conducted a survey of Hong Kong businessmen in the Pearl River Delta. At present, about 37.3% of the 8 Hong Kong enterprises in the Pearl River Delta are planning to move all or part of their production capacity away from the Pearl River Delta. More than 63% of the enterprises plan to move out of Guangdong.

Without policy guidance, if Huajian group's practice is spontaneous economic behavior of the market, so far, industrial pfer has risen to the policy understanding of Guangdong provincial Party committee and provincial government.

In May 29th, the Guangdong provincial Party committee and the provincial government held a meeting to study and implement the decision of the provincial Party committee and the provincial government on promoting industrial pfer and labor pfer. The 50 billion yuan fund was used to promote the "double pfer" of industries and labor force. That is to say, in the Pearl River Delta region, we should "change the cage and change birds", pfer the manufacturing links of labor-intensive enterprises to the eastern, Western and northern areas of Guangdong, and at the same time, attract the pfer of rural labor force from the East, the West and the north to non-agricultural industries, so as to further pform the development mode, upgrade the industrial structure and establish a modern industrial system.

In fact, the Guangdong provincial government consciously promoted the pfer of industries as early as 2002. At that time, the Guangdong industrial restructuring was put forward, and it was proposed to push forward the labour intensive industries in the Pearl River Delta, especially the low value-added industries, to shift to the East and West wings and the mountain areas of northern Guangdong.

In 2005, the "mountain and East West wings and the Pearl River Delta jointly promote industrial pfer" were promulgated, and policies and funds were used to support the establishment of "industrial pfer park" in mountainous cities and counties.

"To solve the problem of development, Guangdong's industrial pfer is still dominated by the government at the present stage and cannot be separated from policy guidelines."

Xie Pengfei, deputy director general of the Guangdong provincial government and director of the Guangdong provincial government development research center, said: "the Pearl River Delta can consider actively promoting the industry to turn out from the needs of its own development, which is very critical.

From the present stage, the most prominent industry pfer in Qingyuan is Heyuan and the city. In a short span of several years, the leap forward development has been greatly accelerated.

The industrial pfer in the Pearl River Delta is the general trend.

It is reported that the Guangdong provincial Party committee and the provincial government are about to issue a decision on promoting industrial pfer and labor pfer and a series of supporting documents.

At that time, the "double shift" of industries and labor will be comprehensively promoted from the aspects of planning, financial support and supporting measures.

Faced with the reality of the relocation or relocation of enterprises, some scholars began to worry about the "hollowing out" crisis in the PRD.

However, some scholars believe that the outside world has exaggerated the relocation of enterprises in the Pearl River Delta to a certain extent, and the relocation of enterprises is only a labor pains in the pformation and upgrading of the Pearl River Delta.

In this regard, Xie Pengfei said, "the relocation of enterprises does exist, but there is no large-scale relocation.

At present, the main direction of the pfer of enterprises in the Pearl River Delta is Guangdong's East West wings and northern Guangdong mountainous areas, and only a small proportion of them are pferred to neighboring provinces.