Wenzhou Leather Enterprises Seek Pnational Breakout

Half is flame, half is sea water.

This is probably an appropriate generalization of the operation of the open economy in Wenzhou in the first half of the year.

In the first half of this year, the growth rate of Wenzhou's foreign trade slowed down significantly, and the amount of foreign capital utilization dropped sharply. In the first half of this year, 32 foreign institutions were newly approved, and the total investment of China was 39 million 360 thousand US dollars, up 80% compared to the same period last year. The figures for Wenzhou's foreign trade and Economic Cooperation Bureau showed that the foreign trade growth rate slowed down sharply.

And in July of this year, Chen Deming, Minister of Commerce in Wenzhou, encouraged the enterprises to seize the opportunity to "go out". In the distant forest of Congo, the first batch of timber was waiting to be shipped to China. The copper ore mining in Mexico was also intended to be sent to China.

This is a season of pressure for all enterprises, but private capital, such as Wenzhou and Zhejiang, is still on the road of internationalization, though this is just the beginning.

The "Wenzhou mall" has been unable to pull the export force for 10 years. After the Wenzhou people built the first overseas Chinese mall, Brazil St Paul China Mall, numerous Wenzhou "commodity cities" were born like clones all over the world.

"They are mainly concentrated in the commodity city type trade, which drives the export of domestic products."

Ye Yi, a foreign economic and Trade Bureau outside Wenzhou, told reporters.

In the first half of this year, there was a slight decrease in Wenzhou's export growth.

From 1 to June, the city of Wenzhou exported 5 billion 527 million US dollars, an increase of 19.3% over the same period last year, down 10.7 percentage points from the same period last year, and the export effect of overseas Wenzhou people has obviously weakened.

Su Xiangqing, director of the Wenzhou Municipal Bureau of foreign trade and economic cooperation, informed Wenzhou's opening economy in the first half of the year, "from the perspective of data in 1-6 months, the domestic and international environment of Wenzhou's foreign trade and economic development is getting tighter. Uncertainties are increasing. More and more foreign trade enterprises in Wenzhou feel the pressure increase."

This situation is most direct to the outside Wenzhou people.

"More and more Wenzhou people come to South Africa, and more and more Wenzhou commodities enter South Africa, and the profit of commodity trade is very low."

Huang Jianwen, President of the Wenzhou Rural Association of Southern Africa, said that because of the serious price, the profit rate of clothing, shoes and caps was less than 1/10 or even lower in 2000.

Many of the Wenzhou businessmen who came to South Africa later could not earn enough money to maintain.

Similarly, in 1999, Wu Jianhai, who founded the "China Commodity City" in the Douala commercial center of the largest city in Cameroon, also felt that it was difficult to continue to sell goods by selling it. "Wu Jianhai,"

He wrote a response report on the construction of Chinese enterprises overseas, and submitted it to the Chinese Embassy in Cameroon: "in the developing countries with relatively weak light industry, there are great potentials for SMEs in China."

Wenzhou businessmen, who are also sensitive to foreign investment, have already moved.

In the more than 20 years since 1986, more than 500 enterprises and institutions in Wenzhou have been approved by government departments.

In addition to promoting domestic exports by trade, Wenzhou businessmen or independent investment in developing countries set up factories, or through mergers and acquisitions to enter the developed markets in Europe and the United States.

Huang Jianwen said that in recent two years, some people in Wenzhou have begun to change their business ideas, but there are not many.

This part of Wenzhou has turned to capital intensive industries such as log cutting, mineral development and real estate investment. This is also the main investment direction of European and American enterprises in the region.

In Huang Jianwen's view, using local mineral resources and using direct investment to drive local economic development and employment will become the mainstream way for Wenzhou businessmen to fight for the South African market.

Compared with trade, South Africa's investment and direct participation in local economic construction are more prominent and most popular.

In 2003, Huang Jianwen invested $20 million in joint ventures with two townships and obtained the right to exploit a 10 square kilometer copper mine in South Africa.

At present, copper mines have brought him huge profits.

Similarly, more private enterprises in Wenzhou have also stepped out of the country to take part in the development of overseas resources.

In February this year, Wenzhou Dejia Wood Industry Co., Ltd. won the bid in Congo (cloth) forest development project, winning 636 thousand hectares of forestland development rights, with a timber volume of about 20000000 cubic meters.

Pingyang Huayuan metal materials Co., Ltd. invested in chrome mining in Vietnam through the opportunity of China ASEAN Expo.

According to the data of Wenzhou central sub Bureau of the State Administration of foreign exchange, the proportion of overseas investment in the form of non physical contribution has risen to 38.6%.

Ma Jinlong, President of Wenzhou Economic Association, said that with the increase of the cost of raw materials and labor costs, some traditional industries in Wenzhou are facing severe challenges.

Under such circumstances, "going out" can be regarded as an effective pfer.

Moreover, being the first and free development is the core of Wenzhou spirit. The internationalization of Wenzhou's private capital continues the predominant advantage of Wenzhou's private economy.

The usurusk look, but the capital guerrilla campaign of Wenzhou's private capital has been unable to meet the needs of the growth of private capital.

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

As the first Russian usuri SK industrial park with a distinct Wenzhou origin, the total investment is RMB 2 billion yuan, covering an area of 2 million 280 thousand square meters, with a planned construction area of 1 million 630 thousand square meters and a construction period of 5 years. It plans to introduce 60 enterprises of all kinds. The focus of investment is on the traditional industries and enterprises with competitive advantages in China, including leather shoes, spectacles, leather goods, lighters, lamps and lanterns, and household appliances.

These are precisely the most representative traditional industries in Wenzhou.

This year, the Zhejiang Association for the first time established the "China Overseas Economic and trade cooperation negotiation zone". The overseas Chinese economic and trade cooperation zone represented by usurusk Industrial Park has been favored by many Zhejiang enterprises.

At present, the overall planning and design of the cooperation zone has basically been completed, and some enterprises have entered the area, and the production is in good condition.

Dr. Lan Qingxin, assistant dean of the International Economic Research Institute of University of International Business and Economics, said: "the first private overseas economic and trade cooperation zone in Russia, led by Kangnai group of Kangnai group, Russia, usurusk economic and trade cooperation zone, is becoming a successful example of the" go out "of domestic enterprises.

From simple output to capital output and from manufacturing in China to manufacturing in the world, the usurusk economic and trade cooperation zone has taken the lead in the development of the international market at a higher level.

Ye Yi, a Wenzhou foreign trade and Economic Cooperation Bureau, told reporters: "the Ministry of Commerce has established 19 overseas industrial parks, two of which are invested by Wenzhou enterprises, and another one is the American science and Technology Industrial Park, which provides more convenient conditions for Wenzhou enterprises to go out together.

From commodity trade to capital investment, and then to small and medium-sized enterprises, this is a trend of pition.

At the same time, the risk of overseas is very large. Holding together to go out can maximize the risk and avoid some trade barriers.

The appreciation of the renminbi is also beneficial to overseas investment.

"Going out", especially "going out together" has been approved by the Ministry of Commerce.

In July 2nd, Chen Deming, Minister of Commerce, came to Wenzhou to investigate the current business situation.

Chen Deming believes that at present, China's foreign trade environment is facing many uncertain factors. While consolidating export earnings, Chinese enterprises should learn to use foreign exchange to increase imports of primary and resource products, seize the opportunity to "go out" and invest overseas to balance the trade surplus.

"Group internationalization" is just a beginning. The new economic development cooperation zone with favorable conditions is conducive to the relatively concentrated investment of our enterprises and the formation of industrial clusters so as to facilitate qualified Chinese enterprises to "go out".

However, at present, many industries in China have the ability and desire to set up factories overseas, but the experience of "going out" is small, and the scale of investment is small. Most of them are still in a state of being alone, which directly affects the success or failure of enterprises' "going out".

"In addition, for the Wenzhou enterprises starting from the light industry, there is still a shortage of talent for going out, especially the comprehensive talents are very scarce, often getting the project, but no one is going to do it."

The government and many enterprises are aware of this problem.

In May this year, the Wenzhou foreign trade and Economic Cooperation Bureau organized more than 40 tanning, metalworking, footwear and electrical enterprises to inspect Longjiang Industrial Park, Thailand Luo Yong Industrial Park and Kampuchea Sihanouk Industrial Park.

More importantly, the Wenzhou foreign trade and Economic Cooperation Bureau revealed that a local commercial bank in Wenzhou also participated in the inspection.

"At present, enterprises are investing abroad, large national banks have very high requirements on project products, and small and medium-sized enterprises are very difficult to get commercial loans. Financing is a bottleneck if they want to go out."

According to people familiar with the matter, the commercial bank, which has taken part in the inspection, has reported to the higher authorities, and is studying the countermeasures.

The Wenzhou foreign trade and Economic Cooperation Bureau also said that under the situation of "going global" awareness, government departments will further improve their services, such as guiding enterprises how to avoid non business risks, do well in monitoring and protection, which is more effective than government intervention afterwards.

Similarly, the requirements for examination and approval have decreased considerably.

"At the same time, one of the most important ideas in the newly revised foreign exchange management regulations is to promote outflow and control inflow, which is a great advantage for overseas investment of enterprises."

"At present, the industrial park is well, the use of resources abroad is also good, basically only just started, it is really necessary to produce a period of time."

For those private enterprises in Wenzhou who look abroad, all kinds of policy advantages and grim situation are also half of the sea and half of the flame.

But these will not interfere with the exploration of "blue water" by Wenzhou businessmen who have always been the first in the world.

Related news, according to statistics of Zhejiang provincial foreign trade and Economic Cooperation Department, in the first half of this year, 218 overseas investment projects approved by the provincial government totaled 430 million US dollars, of which China's investment amounted to US $406 million.

So far, 3157 projects have been approved and approved by the provincial government, with a total investment of US $2 billion 520 million, and the Chinese side has invested 2 billion 146 million US dollars in more than 120 countries and regions around the world.

At present, Zhejiang has 4 state-level overseas economic and trade cooperation zones - Kangnai group Russia usurusk (China) economic and trade cooperation zone, HOLLEY group, Thai China Luo Yong Industrial Park, Qianjiang Investment Company Vietnam Longjiang China Economic and trade cooperation zone, Geely Mexico China (Ningbo) Geely industrial economic and trade cooperation zone, ranking first in the country.

Baotuan attack, for the vast number of SMEs to "go out" provides a platform.

Zhejiang foreign economic and Trade Commission said that in the future, it will gradually improve overseas investment and promotion system, overseas investment policy support system and overseas investment risk prevention system. Through providing investment guidance, policy support, special funds and risk early warning services, after 5 to 10 years of efforts, Zhejiang international enterprise production management system and international marketing system have been initially established, and a number of Zhejiang local pnational enterprises have been produced.