Pearl River Delta 30% Port Enterprises Or Bankruptcy Experts Call For Transformation And Upgrading Of Enterprises

For recent days Hong Kong The Federation of industry predicts that 30% Hong Kong and Pearl River Delta enterprises will be closed down. Guangdong Xie Hong, secretary-general of the provincial SME Development Promotion Association, said 9, some labor intensive enterprises will shrink or collapse or will be unavoidable. Supporting small and medium-sized enterprises through the acquisition, merger and acquisition, and other industrial chain cooperation modes will achieve the transformation and upgrading of these enterprises.

According to reports from 9 local media, Liu Zhanhao, vice president of Hongkong Federation of industry, said that Europe and the United States were affected by the market The double impact of the recession and Guangdong's possible rise in the minimum wage standard will result in 60 thousand Hong Kong enterprises in the Pearl River Delta being dragged down. At the end of the year, there will be 30% PRD ports (about 1.8 000), which are in danger of collapse and contraction.

Xie Hong, Secretary General of Guangdong SME Development Promotion Association, said that not only Hong Kong enterprises, but also small and medium-sized enterprises in the Pearl River Delta are facing challenges and need a long-term adjustment. If we do not change the way of operation, even if we are not affected by all factors this year, we will face the danger of bankruptcy.

"Failure is not necessarily a bad thing. China's social transformation and upgrading must be painful." Xie Hong believes that those labor-intensive and technology deficient enterprises need to survive through transformation. On the other hand, they can enhance their competitiveness through mergers and acquisitions and other industrial chains.

According to sources from relevant departments of Guangdong Province, Guangdong will have the chance to raise the minimum wage standard again next year, and the operating cost of Hong Kong enterprises will be raised. Liu Zhanhao said that the Hongkong Federation of industry has sent the "freezing salary increase proposal" to relevant departments of the central government and Guangdong Province, hoping to be accepted.

Xie Hong has different views on this. In his view, as a labor relations, enterprises should not only regard labor costs as costs, but should be regarded as the competitiveness of enterprises. As prices continue to rise, it is inevitable that employees' wages will rise. If the risk of bankruptcy is only due to the adjustment of wages, what enterprises should do is to change the way of operation instead of reducing the wage standard of employees.

The Ministry of finance has decided to implement the new implementation rules of value-added tax and business tax from November 1, 2011. Xie Hong believes that in view of the current small and micro enterprises are still difficult, for small businesses to reduce burdens policy still need to intensify efforts. "The state should share the current difficulties with the private sector in order to help enterprises adjust their transformation."