The Pearl River Delta Is Still A Hot Spot For Foreign Investment.

At the beginning of the end of the year, the enterprises that started in the manufacturing heavy land of Dongguan moved outside and closed public opinion, and spread like a cold wind.

Under the current "cold current", the development prospects of the Pearl River Delta have become a hot topic both at home and abroad.

In particular, the Wall Street journal daily news about thousands of PRD factories will go bankrupt this year, which once again aroused great concern from all walks of life.

It is undeniable that under the pressure of multiple factors such as appreciation of RMB, environmental requirements and rising production costs, the operation cost of the PRD has risen sharply and there has been a relocation phenomenon. But is it so serious?

How many companies are moving out?

Are these enterprises "root out" completely moving out of Guangdong, or redistributing production links with expansive relocation?

How can Guangdong take the lead and upgrade the industry?

When people continue to worry about the continuous increase in business costs and lead to an increasing number of enterprises and foreign capital away from the PRD, the statistics show different views: the Pearl River Delta last year, while the total volume of foreign capital actually increased, the structure of foreign capital was also optimized, the number of big projects increased significantly, and the proportion of foreign investment in service industry increased significantly.

Guangdong actually utilized more than 20% of the total foreign capital. According to statistics, in 2007, the province actually utilized foreign direct investment of US $17 billion 126 million, accounting for 22.9% of the total utilization of foreign capital in the whole country, an increase of 18%, an increase of 4.4 percentage points higher than that of the whole country, 9506 new contracts for foreign direct investment, and 33 billion 938 million US dollars of contracted foreign capital, representing an increase of 12.5% and 38.1% respectively.

The proportion of contractual foreign capital in North Guangdong, Guangdong and western Guangdong accounted for only 1 billion 967 million US dollars, 1 billion 49 million US dollars and 981 million US dollars respectively, and actually absorbed 1 billion 76 million US dollars, 530 million US dollars and 332 million US dollars.

From the perspective of major cities in the Pearl River Delta region, Guangzhou's foreign direct investment in the past year was 3 billion 286 million US dollars, an increase of 12.4% over the same period last year. The actual utilization of foreign capital in Shenzhen was 3 billion 662 million US dollars, an increase of 12% over the same period last year, and the actual utilization of foreign capital in Dongguan was US $2 billion 100 million, an increase of 16.1%.

In 2007, the main body status of sole proprietorship enterprises continued to improve. According to the introduction, the total contractual foreign capital of the Sino foreign joint venture enterprises in the province was 4 billion 7 million US dollars in 2007, and the actual utilization of foreign capital was US $2 billion 363 million, an increase of 25.7% and 6% respectively. The contractual foreign capital of wholly foreign-owned enterprises increased by 40.2% US dollars, accounting for 83.1% of the total contracted foreign investment in the whole province, 1.2 percentage points higher than the previous year, and the actual utilization of foreign capital 14 billion 52 million US dollars, an increase of 24.4%.

In addition, the amount of contractual foreign capital and actual utilization of foreign capital of Sino foreign contractual joint ventures amounted to 1 billion 214 million US dollars and 478 million US dollars, respectively, by 0.6% and 41% respectively.

According to the analysis of the data, we can see that the structure of foreign investment is further optimized, of which the first industry actually uses foreign capital of 183 million US dollars, an increase of 58.5%.

The second industry still dominates, and the actual utilization of foreign capital is 10 billion 711 million US dollars, down 1.3%, accounting for 62.5% of the total utilized foreign capital in the whole province. Among them, the manufacturing industry of high-tech medicine, general equipment manufacturing, special equipment manufacturing, communication equipment, computer and other electronic equipment manufacturing increased by 42%, 49.6%, 25.2% and 17.8% respectively.

The third industry grew faster and the actual utilization of foreign capital increased by US $6 billion 232 million, an increase of 76%. This led to a 18.5 percentage point increase in the actual utilization of foreign capital in the whole province.

In the past two years, the overall trend and changes in the introduction of foreign capital in Guangzhou can be seen. The growth of foreign capital service industry is supported by the two digit growth in Guangzhou's actual utilization of foreign capital.

According to statistics, in 2007, 571 new foreign-invested enterprises in Guangzhou's service sector were accounted for, accounting for 59.54% of the total number of new foreign-invested enterprises in the city, 3 billion 950 million US dollars for foreign investment, 56.15% for foreign investment, 2 billion 74 million US dollars for foreign investment, 63.12%, and three indicators were all high and over manufacturing.

In Shenzhen, the proportion of contracted foreign capital and actual foreign investment absorbed by the third industry is 70.8% and 48.5% respectively, among which the increase of contractual foreign investment in scientific research and technological services, geological prospecting, leasing and business services reaches 201.74% and 165.65% respectively; the actual foreign investment growth of scientific research technology services, geological prospecting industry, wholesale and retail industry is 77.89% and 336.47% respectively.

The obvious effect of foreign capital projects is obvious. Reporters noted that as a central city of Guangzhou, new foreign investment projects last year also highlighted the obvious driving effect of large foreign investment projects.

Last year, the total amount of investment approved was more than 10 million US dollars and 246 projects, an increase of 34 over 2006.

The 246 major projects contract foreign capital totaling 6 billion 132 million US dollars, accounting for 87.16% of the total foreign investment contracted by the city. The average amount of contracted foreign investment for each 246 projects is US $24 million 924 thousand and 900, which is significantly higher than that of US $15 million 462 thousand and 400 in 2006.

Guangzhou is a common phenomenon in the Pearl River Delta.

Statistics show that the average scale of foreign investment projects in the province continues to expand, and the average scale of foreign-invested enterprises in the whole year has exceeded 3 million US dollars, up to US $3 million 570 thousand and 200, an increase of US $663 thousand and 400 over the previous year; the amount of contracted foreign capital more than 10 million US dollars or more; 1176 new projects and 1176 capital increase projects, an increase of 169 over the previous year; 25 billion 130 million US dollars in contractual foreign investment, an increase of 63.7%, accounting for 70.7% of the total contractual foreign capital of the province;

The change of data not only shows that the Pearl River Delta continues to resolutely eliminate the labour intensive industries such as high energy consumption and low energy, but also highlights the pformation from the concept of attracting investment to attracting investment and forming a virtuous circle of capital market.

Among them, Shenzhen is further promoting the threshold of attracting investment. Shenzhen has repeatedly stressed that "three high and two low", that is, high investment density, high technology content, high added value, low energy consumption and low pollution industries can enter Shenzhen. General enterprises enter Shenzhen to conduct expert review.

The number of truth enterprises in Dongguan has increased steadily. No large-scale pfer has been held at the Dongguan propaganda and ideological work conference held the day before. Liu Zhigeng, Secretary of the Dongguan municipal Party committee, denied that the "more than 500 Taiwanese businessmen in Dongguan" had been circulated on the Internet for a while. "This is not true."

In the past two months, Dongguan has been in the center of the vortex of public opinion in the Pearl River Delta enterprises. Huang Chunming, Secretary General of Dongguan Leather Footwear Association, Li Peng, Secretary General of the footwear association of Asia, or yuan Zhijian, Minister of business promotion of Dongguan economic and Trade Bureau, has recently received many visitors.

Some of these visitors came from banks and securities institutions, some media reporters, and trade associations.

They have only one concern: how many enterprises are there in Dongguan?

It is very normal to cancel two hundred or three hundred shoe factories every year. Yuan Zhijian said that in recent years, due to the increase of land and labor costs and the tight supply of electricity, and the adjustment of a series of national policies, a small number of enterprises have shifted in Dongguan, mainly in sectors with specific sectors (such as labour intensive industries) and some areas with scarce land.

It is understood that the most popular topic about the pfer of labor-intensive enterprises is all kinds of rumors about shoemaking enterprises.

It is reported that since last October, Dongguan's shoes, furniture and other traditional enterprises have rarely seen a large number of withdrawal.

In the first three quarters of 2007, there were about 1000 shoe factories and related enterprises in Guangdong closed or moved out, and hundreds of shoe factories in Dongguan were also closed down.

To make this problem the focus is the failure of Chang Deng shoe factory.

In December 20th last year, Tai Tong shoe company, a Taiwanese capital company with nearly 4000 employees in Datang Village of Dongcheng main mountain management area in Dongguan, stopped operating and paid about 40000000 yuan of economic compensation for its employees.

Huang Chunming was shocked when he saw the news of the relocation of Dongguan enterprises on the Internet.

In order to grasp more accurate information, he went to Dongguan industrial and commercial bureau to understand the situation.

According to the data provided by the Dongguan Bureau of industry and commerce, in 2006, the number of shoe factories opened and cancelled in Dongguan was 883 and 346, respectively, and the number of shoe factories opened and cancelled in 2007 was 501 and 289 respectively.

By 2007, there were 4404 shoe factories in Dongguan.

Seeing these data, Huang Chunming breathed a sigh of relief. He thought that, compared to the total volume of more than 4000 shoe factories, it was normal to cancel two hundred or three hundred stores every year.

In Li Peng's opinion, there is no need to make a fuss about such a result.

Li Peng believes that this is only the inevitable result of the industry shuffling.

Before 2002, there were only more than 20 thousand shoe factories in China, and in the short 5 years, the number of shoe factories increased to more than 30 thousand.

In a short period of time, shoe factories have increased so much, but the number of people wearing shoes has not expanded, which will inevitably result in overcapacity. Dongguan is no exception.

In order to compete for the market, the shoe factories must get room for survival by means of mutual bargaining, and the price of shoes has never been raised.

If a pair of shoes can be sold for 100 yuan after export, the profit is only 5-8 yuan.

Under such circumstances, some shoe factories with no economic strength and management can not keep up.

According to the joint investigation conducted by the Dongguan Municipal Bureau of foreign trade and economic cooperation and Taiwan cooperation, 900 enterprises in Dongguan last year terminated the contract, with only more than 200 Taiwan enterprises. Most of them were labor-intensive enterprises, mainly concentrated in shoemaking, hardware, textile, furniture and other industries.

There are many reasons for the termination of the contract, including the normal expiration of the contract, the "three to one subsidy" to the "three capital" enterprises, some of which are not operating.

At the same time, last year, more than 700 enterprises entered Dongguan, of which more than 200 were Taiwan enterprises. The number of contract enterprises and the number of new enterprises was basically balanced.

Shoemaking industry has formed a complete industrial chain. Luo Bin, deputy director of Dongguan economic and Trade Bureau, said that in recent years, with the gradual increase of labor costs, recruitment gradually became difficult. With the increase of international trade friction, appreciation of RMB, export tax rebate and adjustment of processing trade policy, small and medium-sized enterprises were gradually under pressure.

According to Zhang Huarong, President of Huajian group, China's largest exporter of women's shoes and chairman of the footwear association of Asia, in 2007, the group raised its order price by 3%, but its profit dropped by 5%.

Wang Lie, executive secretary of Dongguan famous furniture club, said that in May 2006, the price of plates began to rise, and in August of that year, the cumulative increase reached 50%.

In contrast, the Southeast Asian countries such as the mainland and Vietnam have the advantage of low land and labor costs.

In the latest issue of the Asian footwear industry, Ganzhou, Jiangxi, has done a lot of advertising to find customer resources at lower factory prices and labor costs.

According to the introduction, the labor cost in Ganzhou is 10% lower than that in Dongguan. The average wage of Ganzhou Huajian employees is less than that of Dongguan Huajian employees, which is about 200 yuan.

When a shoe factory in Dongguan moved to Chenzhou, Hunan, the average wage of workers was 50 to 100 yuan lower than that of Dongguan, and the local rental level of factory buildings was only 1/3 of that of Dongguan.

But Li Peng firmly believes that Dongguan's shoe enterprises, especially the big shoe companies, will not migrate, for example, Huajian.

Huajian is a large shoe factory with tens of thousands of employees. In January 2002, Huajian established Huajian international shoe city Co., Ltd. in Ganzhou, Jiangxi, with a total investment of nearly 100 million dollars.

Two years later, Huajian set up two shoe making lines in Vietnam, where labor force is cheaper.

In recent years, rumors about Huajian's relocation have not subsided, but Xie Yonghong, director of recruitment at Huajian shoe company, said it was impossible.

On the morning of February 20th, Xie Yonghong sat in front of the recruitment market of the Backstreet labor market.

He said that the company will open Dalong branch in Nancheng city in the near future, and need to recruit 3000 workers, and now has recruited more than 1000 people.

Zhang Huarong said that although the average labor cost in Vietnam is only 3/5 of China, its industrial matching is inconvenient, and the raw materials and accessories needed by the Huajian Vietnamese factory must be shipped from Dongguan.

Zhang Huarong's words resonated.

In Li Peng's view, after 20 years of development, the footwear industry in Dongguan has formed a complete industrial chain, and the upstream and downstream matching facilities are very convenient. This is Dongguan's greatest strength.

A shoe factory in Dongguan can complete the preparation of equipment, raw materials and workers in less than a week. 100% of the low-end raw materials can be purchased on thick street.

In recent years, the footwear industry in Vietnam, India, Indonesia and other countries and regions has developed rapidly, and the labor cost there may be lower than that in China at present, but the comprehensive cost will not be much lower.

According to Huang Chunming, at present, Dongguan leather shoes Association has more than 100 member units, including Huajian group Huabao Shoes Co., Ltd., and Dongguan Cross Day Footwear Group Co., Ltd., and many other famous enterprises, although there are many places to "make a fool of them",