Doubling Of Labor Cost In Garment Industry Is Still Difficult For Enterprises To Raise Funds.

The reporter noted that the clothing industry, UNIQLO, Muji, Tokyo style, honeys are slashing orders to invest in China, bulk distribution to Southeast Asia, India and other places of the industry and commerce.

After Fan Youbin finished his MBA in 2008, he returned to Foshan and founded a family.

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Although it was coincided with the global financial crisis, Fan Youbin obviously felt that this year was far more difficult than in 2008. "70% of the domestic garment processing plants are mainly exported, and the biggest impact this year is from the competition of Southeast Asian countries."

Gong Jiayong, deputy director of the strategic emerging industries research center in Guangdong (Dongguan), looks at the situation faced by SMEs this year more complicated than in 2008.

It is understood that since 2008, the lowest level of a city in Guangdong province (Guangzhou)

From 860 yuan / month to 1895 yuan / month.

China's manufacturing cost is almost the same as that of the US, according to a report from the Boston Consulting Group (BCG).

Le Jianbo, the owner of a small garment processing factory in Humen town of Dongguan, has had some worries this year. His factory is mainly engaged in the outward processing of middle and high end garments, but more and more of them are pferred to Vietnam and other Southeast Asian countries. The price of domestic orders is also depressed, and the wage increase has reduced the production profits.

"The number of foreign orders has been reduced by three or four per cent this year."

"In Bangladesh and Kampuchea, each employee can earn less than 130 dollars a month, and each worker can produce clothing less than 1000 yuan in wages.

But China is different. China's per capita wage is 600~800 dollars / month.

From a global perspective, China's manpower cost advantage is gone. "

Fan Youbin told reporters.

Since 2008,

The minimum wage of a city (Guangzhou) increased from 860 yuan / month to 1895 yuan / month, up 1.2 times.

The minimum wage standard of two cities such as Dongguan and Foshan also increased from 770 yuan / month to 1510 yuan / month.

BCG's report on the global shift of manufacturing industry released in August this year indicates that the US manufacturing cost index is 96 based on the United States (100). In other words, the same manufacturing cost of the United States is US $1 and China needs us $0.96.

The report believes that China's manufacturing industry is facing great pressure, because the cost of manpower rose from $4.35 in 2004 to $12.47 in 2014, or 187%.

"From 2008 to now, the wages of workers have doubled at least."

Le Jianbo told reporters that in his factory, a skilled worker earned a monthly salary of around 5000 yuan, while the average worker earned 3000 yuan a month.

Wang Xin, who owns a LED equipment company in Dongguan, also said that from 2008 to now, the monthly salary of equipment technicians has risen from 3000 yuan to 6000 yuan, or doubled.

Jiang Lin, director of Finance and taxation department of South of the Five Ridges College of Zhongshan University, said that more than 80% of the enterprises in the Pearl River Delta are processing trade enterprises. The increase in production costs will only lead to the pfer of orders.