Foreign Media See Dongguan: Manufacturing Advantage Is Still In

This fall, Frank Leung, the boss of a shoe making company in Hongkong, flew to a place he had never thought of visiting.

He came to Dhaka and Addisababa to find a new foothold for the factories located in Dongguan, China.

Despite his extensive search, he is still disappointed.

This sounds exciting, but Mr. Liang is not so optimistic.

He said, "traffic congestion is serious here.

After visiting Dhaka, Mr. Liang went to Addisababa again.

The wage level here is even lower than that in Bangladesh, but he can't find supporting industries here.

Now, Mr. Liang is not sure whether he will shift the production base from China.

Although many factory owners are seeking to move to Vietnam and other countries, they eventually choose to stay at home because of the supply network, productivity of workers and unfamiliar with how to manage workers of different cultural backgrounds.

Longzhou economic research has found that although labor intensive industries such as textiles, clothing and toys have moved to Southeast Asian countries, Chinese manufacturers have raised 10%-20% this year.

This shows that they have gained some pricing power.

Dong Tao, an economist at Credit Suisse, said the reason is simple: "the efficiency of any other developing country is not as high as that of China".

China has many advantages, such as huge workforce, high productivity, excellent ports and highway facilities, which makes it difficult to replace.

Dong Tao said: "when China abandons these advantages because of its growth, it will not be possible for another China to emerge."