Layout Of The Global Market And The Accumulation Of Power By Yang Fan

Up to now, Dongguan has about 420 enterprises in Southeast Asia, Europe, Africa, the Americas and other countries and regions.

There are 316 investment projects overseas, involving investment of about US $900 million.

Dongguan's industry "going out"

Recently, Dongguan's "going out" industry has become a hot topic again.

First, a group of Dongguan entrepreneurs went to Africa to investigate. They exclaimed that Africa was Dongguan, which was twenty or thirty years ago, ready to go to Africa to start a factory.

There are more than a dozen enterprises in Arkansas to visit the state of the United States, preparing to set up a processing base to pform products from "made in Dongguan" into "made in the United States".

The latest news is that the Prime Minister of Ethiopia has personally run to Dongguan to extend her cooperation to Dongguan boss.

Information from Dongguan Business Bureau shows that up to now, about 420 enterprises have invested 316 projects overseas, involving investments of US $840 million, including Southeast Asia, Europe, Africa, the Americas and other countries and regions.

It can be said that the arrow of industrial pfer in Dongguan has already pointed to all parts of the world.

So what kind of enterprises have Dongguan pferred out? Why do they pfer? What does pfer mean to Dongguan? In recent days, Nanfang Daily reporter has launched an investigation.

Resource-based and manufacturing enterprises are the main force of pfer.

According to a press survey, Dongguan's "going global" enterprises are mainly resource-based and manufacturing enterprises, mostly small and medium-sized enterprises and private enterprises.

The motive force of pfer is not only the objective factors of higher labor cost in Dongguan, but also the subjective factors that enterprises want to approach the consumer market and the origin of raw materials.

For example, Ming Sheng energy, China exhibition, mining, universal stone and other resource-based enterprises, Huabao shoes, Yongqiang automobile, Chuang Ke group and other manufacturing enterprises.

From the point of settlement, Hongkong is the main investment area, and the global market is widely distributed.

According to statistics of Dongguan Municipal Bureau of Commerce, Hongkong has become the first choice for overseas investment of Dongguan enterprises, accounting for 67%, with the advantages of geographical and social advantages, perfect financial services system and infrastructure construction, and wide international market and other factors.

In the early days, enterprises generally felt that the entry of European and American countries was easier, and there were stable processes in all aspects. There were not many knowledge about emerging markets, including culture, policy, system, customs, religion, language, etc. many enterprises were inclined to find agents to expand their market for them.

However, overseas investment of Dongguan enterprises is mainly distributed in 35 countries and regions around the world.

In recent years, the global market has been widely distributed and diversified. Some overseas investment projects of some enterprises in Dongguan have expanded to Southeast Asia, Europe, the United States, Africa and other countries and regions.

The trend of "going out" is obvious.

From the perspective of the time span, the "going out" of Dongguan enterprises began in the early part of this century, and after the international financial crisis in 2008, there was a small climax.

Typical include the 2010 Sima toys set up an overseas marketing network in Dubai, the 2010 Dongguan Yongqiang automobile acquisition of the British Carmichael (Heroic) fire truck manufacturing company, and 2011 Dongguan Warburg footwear industry in Ethiopia, Africa.

Combing the history, we can find that most of the Dongguan enterprises first went out in the form of a single fight and dominated by their own capabilities.

Dongguan Business Bureau official said, at that time, a group of local pnational corporations with independent innovation capability and independent brand had not yet formed. The industrial network relationship between large enterprises and small and medium-sized enterprises was relatively loose. The leading role of large enterprises was not obvious.

But now, the trend of "going out" is becoming more and more obvious. Enterprises are adopting the form of Baotuan to develop new markets.

For example, Dongguan Changhong timber industry and Russia's Air China forestry cooperation, the Russian birch wood plate into Dongguan sales, Jin Hongsheng Electric is preparing to set up a mobile phone production line in Brazil, because the company's sales in South America accounted for 20% of the company's sales.

The listed company will also set up factories in Brazil to provide high-power LED street lamps for Brazil.

"Going global" is also a process of industrial upgrading.

There is a view that industrial pfer will result in the hollowing out of Dongguan's industries and bring negative impacts on economic vitality, taxation and employment.

But on the other hand, the data show that these enterprises set up factories overseas and acquired foreign brands, which not only expanded the market channels of products, but also improved the level of innovation and technology, and introduced more competition, more effective management measures, and also promoted the pformation and upgrading of domestic enterprises.

In fact, overseas "well run" enterprises often play an exemplary role. On the one hand, they lead more enterprises to "go together" to go out, on the other hand, let the world know about Chinese enterprises, and also attract some high-end enterprises to settle in Dongguan or other domestic areas, and also support domestic pformation and upgrading.

Manufacturing is the foundation and root of the economy. Without the success of the manufacturing industry, there will be no economic development.

In the new normal economic situation, it is very important to stick to the manufacturing industry. "

Prior to his participation in the forum in Dongguan, Long Yongtu, former Secretary General of the Boao forum and vice minister of the Ministry of foreign trade and economic cooperation, said that the process of industrial pfer is also a process of upgrading the industry.

In the past, the pfer of low-end manufacturing in Dongguan could provide the necessary space and resources for the pformation and upgrading of industries.

Long Yongtu's view is quite similar to Dongguan's idea of promoting "three old" pformation and enterprises' in situ pformation.

After the closure or relocation of low-end enterprises, it is necessary to set up a threshold for investment and investment.

At the same time, manufacturing enterprises continue to stay in Dongguan through pformation and upgrading to reduce low-end links and enhance competitiveness.

The cost of employment in Southeast Asia is 1/4 in Dongguan.

Southeast Asian countries include Vietnam, Laos, Kampuchea, Malaysia, Singapore, Indonesia and 11 other countries.

A number of foreign OEM enterprises in Dongguan migrate to Southeast Asia, mainly due to the increase in labor costs and the shortage of reserve labor in Dongguan factories, but the cost of labor in Southeast Asia is low, and the labor capital in Vietnam is only 1/4 of that in China.

This gap directly leads to the relocation of relevant foundry enterprises such as shoemaking, clothing and electronics to Southeast Asia.

"With the increasing cost of human resources, 80% of the shoe companies plan to set up factories in Southeast Asia to remove the processing links."

Liu Wei, Secretary General of Dongguan footwear industry association, said that after 2008, Dongguan's Taiwanese capital and Hong Kong shoe factories began to move abroad.

Since June this year, the footwear industry association has organized a number of footwear enterprises to visit Vietnam, Kampuchea and other countries to prepare for the next move.

OEM enterprises are moving out of the main force.

Liu Wei used to run a shoemaking machine manufacturer, and in the early days of the development of shoe industry in Dongguan, his business was also in the ascendant.

According to statistics, during the boom period of the footwear industry in Dongguan, about 65% of the world's high-end shoes or shoes were from Dongguan, and 1 pairs of sports shoes in the world were produced in Dongguan.

"At that time, the business was good, and the machine was in short supply, but the two years were slow to sell."

Liu Wei said that since the 2008 financial crisis, Yuyuan group, Huajian group, oasis shoe industry, Luyang shoe industry and many other shoe making groups all over the world have moved to Southeast Asia and other countries.

The shift of shoemaking enterprises has also promoted the pace of going out of the industry chain.

In September 9th, Zhou Wenwu, general manager of Nan Xin Chemical Industry Co., Ltd., told reporters that the company recently decided to open a factory in Kampuchea, which is close to customers who moved from Dongguan to Southeast Asia.

He said that Nan Xin chemical is the first brand of China's shoes water adhesive. With the relocation of customers, the industrial chain should keep pace.

"Customers used to use our materials in Southeast Asia, but if we allocate them from Dongguan, the logistics cost will even exceed the cost of production."

Zhou Wenwu said that enterprises are going out of the market because of market considerations.

Zhou Wenwu pointed out that the relocation of enterprises is a kind of market behavior and will not have a great impact on the footwear industry in Dongguan.

All those who moved out were those with high labor costs to seek higher profits.

He also said that many of his company's shoe companies' processing links were pferred, but the upstream and downstream of the industrial chain was still in Dongguan.

To reduce logistics costs and other costs, these upstream and downstream enterprises have also set up factories in Southeast Asian countries.

Dongguan Jinming Hardware Co., Ltd., Ms. Sheng told reporters that Jinming hardware mainly produces screw fittings and other products.

At present, it is also considering the layout of factories to Southeast Asia and other places.

Turning to the reasons, Ms Sheng said: "the cost of manpower in Southeast Asia and other regions is relatively low. Meanwhile, there are scarce resources in some areas, and the market price is higher, which makes the layout of these areas have larger profit margins."

Strengths and weaknesses are labor force.

Although many people believe that the strength of Southeast Asia's labor force will attract a large number of manufacturing migration, from the perspective of the owners, the disadvantage of the labor force is still obvious.

"Southeast Asian workers have low education level, relatively backward skills, and different cultural backgrounds. Some enterprises have not been convinced in the past, and the cost advantage is not obvious."

Zhou Wenwu said that for some low-end and low technology manufacturing industries, Southeast Asia has considerable cost advantages, whereas on the contrary, its skills are obviously not as good as those of Chinese workers.

In addition, the mature design and R & D links have been rooted in Dongguan for many years. Southeast Asian countries are still unable to grasp them, and R & D personnel are all settled in China.

Dongguan Wei Guang Gift Co., Ltd. is a professional manufacturer of hardware crafts, gifts, as early as the 1994 World Cup in the United States, Wei Guang began to produce official licensed products of the world cup.

During the Brazil World Cup last year, the company produced about 8000000 licensed products of various world cups, and sold them to the whole world through Internet and agents.

Li Zheyu, general manager of the company, said that in recent years, Wei Guang has developed from original OEM to participation in design, and then to participate in sales, and finally to his own grasp of design, production, sales and other links, and achieved remarkable results.

Today, Wei Guang gift company intends to invest in Southeast Asia to build factories, pfer its relatively low-end shoes and other OEM products to Southeast Asian countries, and concentrate on producing exquisite gifts such as the world cup in Dongguan.

Pu Dongxuan, chief economist of the Asian Development Bank, said: "Southeast Asia has a large number of young labor force, but their skills and education level are relatively backward, which has become a bottleneck restricting the development of regional manufacturing industry.

For Southeast Asian countries, it is imminent to improve the quality of labor and reform the vocational education system.

"Transfer orders, do not pfer profits".

It seems that the primary manufacturing industry is slowly starting to leave China, reflecting on one side that China's labor cost advantage has gradually narrowed, and the manufacturing sector is facing a series of bottlenecks.

But if some other data are combined, some of the manufacturing enterprises that have mastered the core technology have a new space for development in this process.

"We pfer orders only, but do not pfer profits."

Zhou Wenwu said that enterprises set up factories in Southeast Asia, and intend to hire local people for their OEM.

We can only go out better if we take root in China.

We set up factories in Southeast Asia to expand rather than pfer.

Zhou Wenwu believes that through enterprise innovation and R & D, it can take a lasting advantage and position in the supply chain, enabling enterprises to further embrace the global market.

North America wants to share the "American made" support policy.

In August this year, more than 10 enterprises in Arkansas went to the state of the United States for inspection, preparing to set up a processing base to pform products from "made in Dongguan" into "made in the United States".

Now, a group of Guan enterprises in Arkansas, USA, have signed a factory agreement and signed a local factory building with an area of about 60 thousand square meters. The plant is expected to complete the renovation and start work within 4 months.

Reporters learned that the local policy environment is relaxed, closer to customers and other conditions are the main reasons why Dongguan enterprises choose to settle in the United States.

Making "made in Dongguan" into "made in America"

At present, the domestic labor costs continue to rise, manufacturing enterprises have to Vietnam, Kampuchea and other low production costs in Southeast Asian countries set up branches.

At the same time, the choice of production costs is much higher than that of the domestic manufacturing and processing enterprises in the United States, and many people seem to have some "Arabian Nights".

But the United States project sponsor, President of the Chinese Cross-Strait Economic Promotion Association and Jiabao toy chief, LAN Junxiong, said that holding a tour to the United States would actually seize the local policy opportunity.

"The main business of Arkansas is WAL-MART, and Arkansas is also the headquarters of WAL-MART."

Lan Junxiong disclosed that in Dongguan, many enterprises are suppliers of WAL-MART. At present, the US government advocates the revitalization of "made in the United States", the implementation of the country's priority procurement plan and the corresponding tax relief. WAL-MART, as a well-known large American enterprise, will become a direct beneficiary.

"So we consider opening factories in the United States, and products are directly produced in the United States."

Lan Junxiong said, take the Jiabao toys located in the South five community of Houjie Town as an example, the enterprise, as a supplier of WAL-MART, has worked with WAL-MART for several years. The vast majority of products are exported products, and their production processes and standards are in line with the needs of buyers.

"Therefore, even if we set up factories in the US, we still have the courage to be abandoned by customers."

According to Wu Yongxue, vice president of the CPC Central Committee, there are more than 10 enterprises in the US, and have talked with WAL-MART several times. According to the project leader and the vice president of the CPC Central Committee, it is estimated that the initial investment will be nearly US $20 million.

Reduce costs, production and processing step by step

Po Chan shoe industry, located in Ting Shan community, Houjie Town, is also one of the companies to visit the US.

The person in charge of the plant said that the low production cost should not be taken as the incentive to pfer the manufacturing enterprises.

So we choose the United States with policy support, familiar customers and stable economic environment.

Wu Yongxue said that the high cost of production in the United States can be "technically" reduced.

"For example, the main body of our production enterprise is still in China, but only the semi-finished products are produced, and then the semi-finished products are exported to the processing centers in the United States to complete the final stage of production.

He added: "if the cost of production is the same as that of domestic plants, but the market is bigger and policy support, the prospect of opening a factory in the United States is good."

"Last year, the US domestic procurement plan was as high as 25 billion dollars, and the policy will continue for several years."

Lan Junxiong said, in addition to this, after the delegation returned home, the United States is still reporting a lot of news.

"WAL-MART and Thomas Publishing Co jointly launched an American version of the Alibaba website to help American companies purchase spare parts on the website.

This will undoubtedly help expand the customer base for Chinese enterprises preparing to open factories. "

According to the briefing, the processing base of Arkansas will soon be completed, and at least one production line will start in 4 months.