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Pearl River Delta Shoe Factory To Consider Shifting Outward

2008/6/16 0:00:00 74

Under the pressure of RMB appreciation, nearly 2000 shoe manufacturers in the Pearl River Delta have given up export trade in order to protect themselves.

Some shoe companies are saying, "if the US dollar rises to 6.2 to 6.5 yuan against the central parity of RMB, it will consider changing or moving out."


The Shanghai Securities Journal reported that the appreciation of the renminbi has become a worry and worry for the traditional export industry footwear industry.


The renminbi has appreciated sharply this year. The cumulative appreciation in the first quarter has exceeded 4%. On the 12 day of this month, the central parity of the US dollar against the RMB has risen by 6.91, setting a new high since the reform.

With the momentum of RMB appreciation and the continuation of the appreciation expectation, the traditional labor intensive production and export industry represented by the footwear industry is most seriously affected.

Guangdong provincial foreign trade and Economic Cooperation Department officials believe that the foreign trade situation is extremely optimistic, "this year is the most difficult year in history".


Guangzhou customs statistics show that from 1 to February this year, 1512 enterprises in the Pearl River Delta region participated in export shoes, representing a decrease of 1855 over the same period last year.

Among them, the number of private enterprises decreased by 1484 compared with the same period last year, the number of foreign-invested enterprises decreased by 92, and the number of state-owned enterprises decreased by 23.


According to the survey of the footwear association of Asia, there were more than 1000 shoe factories and related enterprises in Dongguan, Huizhou and other places in Guangdong last year. Some of them went out of business or went bankrupt, or were sealed up by the courts or even moved to other areas.


Fujian Fu Wei import and export company said that there were 5% gross profit before.

Today, the appreciation of the renminbi, the current export profits may not be able to maintain 2% to 3%, and sometimes even lose money.


It is understood that as a sports shoes production base in Jinjiang, there are 20% to 30% small shoe factories closed down.

The uncertainty of the exchange rate makes it difficult for many export oriented shoe enterprises or foreign trade enterprises to determine export prices, resulting in some shoe companies who dare not take or do not want to pick up, or even take the initiative to break the contract after receiving the order.


Footwear industry employees say many Dongguan shoe companies have moved to Chengdu or Jiangxi, and trading companies have moved to Vietnam.

But Liang Shaosheng, the shoe department of Guangdong's external business development companies, believes that the information is blocked in the mainland, although the labor force is low, but other jobs may increase, such as logistics costs, and so on.


In the 60s of last century, the world shoe center was pferred to Japan and South Korea in Italy in 70s, pferred to Taiwan in 80s, and pferred to Guangdong Dongguan and Zhejiang Wenzhou in 90s.

Nowadays, shoe industry center has signs of moving to the interior of the mainland.


An interview with a Taiwanese businessman said, "the difficulties encountered in Dongguan today are the same as those that were withdrawn from Taiwan a few years ago".


Liu Guokang, deputy director of the Coordination Office of Dongguan's private economic development, reminded that "industrial upgrading" may be the ultimate choice of traditional labor intensive industries, such as shoe companies.

He believed that traditional industries should be pformed into brands, and export and domestic sales should be combined.

"I have seen so many enterprises, if I do not have such a pformation, I can only move."


       
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