More than 20 years ago, the mainland's Delta area became the first choice for Taiwanese businessmen to develop on the mainland with its location advantage.

But in recent years, Taiwanese funded enterprises are facing unprecedented pressure of pformation.

The pressure of the pformation and upgrading of land, manpower and industry is coming in, making the traditional manufacturing enterprises labelling the "agent" is facing a historical turning point.

　　轉(zhuǎn)型在夾縫中生存

Recently, the suicide of Foxconn, which is known as the "king of foundry", has once again highlighted that the mode of foundry industry operated by Taiwanese businessmen may go into a blind alley.

Analysts say the Foxconn incident has sounded the historical alarm bell for the pformation of Taiwan's foundry production mode. "Industrial pformation and upgrading have entered the turning point of history."

The Taiwan business community believes that in recent years, due to the financial tsunami and the lack of jobs, the Pearl River Delta has set off a wave of bankruptcies.

The so-called "lean management", explained by Lingyu Yu, director of the investment department of the Ministry of economic affairs of Taiwan, "it is the production line that takes two hours to know which side is too crowded and which side is less", and then knows how to save. In the Pearl River Delta, the Foxconn is the first big business to promote "lean management", because the average gross profit margin of the foundry industry is very low, so we must try to reduce the cost to survive.

An expert from "China Productivity Center" analyzed that "lean management is the ten person's work for five people, and the cost of saving five people in the middle can be pferred to employee benefits".

In fact, for most Taiwanese businessmen in small and medium-sized enterprises, facing the gradual loss of the advantage of low labor cost, they want to survive, only to promote lean management. The experts said that Taiwanese businessmen used to earn "opportunity money", and now they have a high operating cost to earn "management wealth".

On the other hand, pformation and upgrading are almost all the issues facing Taiwanese businessmen.

Liao Wanlong, President of Chun Bao tungsten steel group, who is known as the king of tungsten steel, told the first Financial Daily reporters that the company's products are trying every possible way to integrate with the international market.

While the price of international nonferrous metals rose sharply, Chun Bao tungsten steel was profitable.

However, the financial crisis has forced it to actively seek the pformation and upgrading of the international industrial alliance.

"Now that the situation is different, traditional enterprises have no future to produce low value-added products by manpower cost advantage. Transformation is not necessary without brand situation. Only by increasing the added value of products can we survive in the cracks. Whether Taiwan businessmen or enterprises across the Taiwan Strait should pay attention to this problem."

Liao Wanlong said.

The cost of manpower in coastal areas represented by delta areas is gradually narrowing with the central and western regions, and coastal areas are increasingly losing the advantage of labor absorption.

Guangdong used to be 25% higher than the Midwest, and now there is little difference.

Han Jun, Minister of rural development of the State Council Development Research Center, revealed that last year, the number of migrant workers in the central region increased by 6 million 170 thousand, while that in the western region increased by 6 million 670 thousand, while that in the eastern region decreased by 8 million 800 thousand.

The tide of pformation that Taiwan funded enterprises are facing is attracting great attention from the Taiwan Affairs Office.

Two months ago, the Taiwan Affairs Office issued a document to the local Taiwan Affairs Office and asked all localities to conduct a special investigation on Taiwan capital pformation, trying to seek first-hand information for the decision-making departments.

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　　臺(tái)資企業(yè)轉(zhuǎn)型分化

Labor shortage will be a difficult problem for many Taiwanese enterprises.

In order to seek sustainable development, many traditional Taiwanese funded enterprises have begun to move towards new industries.

Longfeng food, known for its production of glutinous rice balls, went back to Taiwan to develop LED industry.

As the biggest pastry baking enterprise in mainland China, Christina, who has an annual revenue of 2 billion yuan, is actively preparing to return to Taiwan and is seeking to pform into a new type of healthy functional food manufacturer, including biotechnology.

Similarly, Huang Wenguang, a Taiwanese businessman who grew up with mushrooms, has successfully pformed into tourism.

In the Nanjing area of Fujian, with the help of local characteristics of the "earthen culture", Huang Wenguang invested 35 million yuan to create the only Cafe Tian Green Coffee Culture Sightseeing Park in Fujian Province.

Next, Huang Wenguang plans to develop Lavender farms on the basis of coffee grounds.

Transformation and pformation have become the two legs of traditional manufacturing Taiwanese enterprises.

The migration position is also the only way for many Taiwan funded enterprises to survive.

At present, many Taiwanese enterprises are pferring to the mainland and Southeast Asia.

However, there will be great changes in the human resources and infrastructure and the market of the new plant, which will make it difficult for the Taiwan funded enterprises to pfer in a collective way.

Research shows that Taiwan funded enterprises do not appear to shift from coastal to inland.

Some Taiwanese enterprises that pfer to Southeast Asia also have little thunder and rain, but Foxconn's capital investment, which is investing in Vietnam, is not fully in place.

"We can not find enough skilled workers and supporting infrastructure, and perfect industrial chains, which have restricted their pformation."

Analysts said.

Analysts also stressed that: at present, Guangdong and Hongkong have priority in the development of advanced manufacturing and modern service industries, and the newly approved Yangtze River Delta regional plan clearly defines the region as an important international gateway in the Asia Pacific region, an important global modern service industry and an advanced manufacturing industry, all of which will give greater pressure to the pformation of Taiwan funded enterprises on the road of pformation.

The recent survey of Taiwan funded enterprises research center of Taiwan Research Institute of Tsinghua University shows that there is differentiation in the pformation of Taiwan funded enterprises.

The pformation pressure of Taiwan funded enterprises dominated by electronic IT industry is relatively small. Kunshan's electronic industry, Taiwan funded enterprises do not even show signs of reduction in production and pformation.

"However, their R & D investment is increasing, and now many Taiwanese invested enterprises in mainland China have reached 5:5 with their parent companies in Taiwan, which is not in the past."

Li Baoming, director of the Taiwan funded enterprise research center of the Taiwan Research Institute of Tsinghua University, said many Taiwanese electronics companies are also moving towards high-end products.

Compared with the electronic Taiwan funded enterprises in the high-tech industry, the traditional Taiwanese small and medium-sized manufacturing enterprises, which have been in the low end, are facing a life or death situation.

"A number of small and medium-sized Taiwan funded enterprises in our research show that many of them are difficult to sustain, and they want to pform them, but there is no financial strength, because turning to new industries requires a lot of investment," he said.

Li Baoming said.