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Low End Manufacturing Capacity Gradually Outflow "World Factory" Advantage Is Still In

2012/11/2 12:56:00 28

TextileLabor-IntensiveMade In China

 

Labor-intensive industries represented by light industry and textiles have been the main force of China's foreign trade export.

And from

The 112nd Canton Fair

All the signs revealed that the middle and low end capacity of these industries is facing more and more prominent orders reduction and capacity shifting challenges.

Experts pointed out that while the old industry is fading away, the replacement of new industries, new products and new production capacity will be a new test for the change of China's industrial structure.


Low end manufacturing capacity gradually outflows


"

Vietnam?

The workers are 600 yuan a month, and our domestic workers' wages cost 20%~30% of the cost.

Mr. Lu, the manager of Guangdong Xiong Ying Group Co., Ltd., gave the reporter an account.

Besides the wages of workers, the cost of land in Southeast Asian countries is relatively low.


Cultural proximity is also an important reason for the smooth pfer of factories to Southeast Asia.

"There are many ceramic factories in Chaozhou, which are pferred to Thailand, Vietnam, Philippines and Kampuchea. Besides the low cost, Chaozhou people have been doing business in Southeast Asia for hundreds of years, and basically communicate with Thailand in Chaozhou," Lu said.

Some Taiwanese businessmen have begun to turn their investment to Southeast Asia.


According to the survey of China Light Industry Arts and crafts import and Export Chamber of Commerce, China's light industry has shifted outwards, especially in some low-end manufacturing sectors.

"In 2008, the light industry maintained a high growth rate throughout the year, but the growth of some industries has begun to slow down.

There was a sharp reduction in 2009. "

Li Wenfeng, vice president of China Light Industry Crafts Import and Export Chamber of Commerce, said.


Guangdong's foreign trade and Economic Cooperation Department's survey data show that there are 41 investment projects pferred from Guangdong to China this year, of which 15 and 13 have been pferred to Malaysia and Vietnam, with textiles, clothing and

Shoes and Hats

And so on.

In recent years, some big international companies such as Nike have also moved part of the OEM business from China to Southeast Asia.

Some enterprises in China also take the initiative to shift part of their production capacity to maintain international competitiveness.


The advantages of "world factory" are still in existence.


"At present, the demographic dividend window tends to be closed, and the difficulty of employment and the increasing employment cost are gradually weakening.

Deng Yujun, a professor at the school of economics and management of South China Normal University, said that at the same time, the RMB exchange rate and target market have also become an important factor in the relocation of factories.


In the opinion of experts, the low end manufacturing capacity that China is losing will indeed have a certain impact.

tradition

manufacturing industry

It is our traditional advantage, and it is also the motive force to maintain the growth of foreign trade, and also plays a great role in stabilizing employment.

"Compared with the electronics industry, product characteristics such as shoes, hats, clothing, furniture and other labor-intensive industries determine that these industries require very high marine pportation and are unlikely to pfer costs to the mainland to reduce costs. The gradient pfer of these industries in the global coastal area is the mature path of international industrial adjustment."

Deng Yujun said.


Information from Shenzhen's Yantian Port confirms this.

According to the person in charge, since the first half of this year, one of the indicators of the decline in pport volume in Dongguan is the sharp decline in furniture exports in both the two places of the city of Shenzhen, and the demand for ocean pportation is also decreasing.


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However, the industry believes that the high-end production capacity of China's labor-intensive industries is still stable, even if the low-end capacity outflow will not be too fast, mainly because China continues to maintain the "world factory" advantage.

"Setting up factories in Southeast Asia is a major defect that the industry chain is not matched.

You have ceramic soil, no matching refineries, and digging out is useless. "

Cai Zhentong, vice chairman of Guangdong four way group, said that in addition, the quality of workers is also a major obstacle.

Although the cost of labor in Southeast Asia is low, but the mobility of workers is great. The weekly wage settlement also affects the liquidity of enterprises, which is also a test for the management capacity of enterprises.


In Cai Zhentong's view, China still has its advantages in terms of investment environment, production of cost-effective products and diversity of products.


Where should we lose it?


With the continuous export of low-end manufacturing capacity, China's foreign trade structure is shifting from quantity pulling to price pulling.

"From this year's foreign trade figures, the growth of light industrial products is mainly driven by price.

Jewelry grew by 70% in 1~8 months, but its average unit price rose by 60%.

1~9 furniture rose 30%, of which prices rose by 21.5%.

Li Wenfeng said.


Li Wenfeng believes that China's foreign trade needs to face up to the fact that the comparative advantage in the past is disappearing, and the new advantages need to be nurtured.

From the perspective of price pull mode, although some well run enterprises gain the advantage of increasing bargaining power by developing new products, most of them are driven by cost.


Then, after the low cost advantage is fading away, where should China's manufacturing industry lose its capacity?


Experts believe that China's manufacturing needs to cultivate new growth points for foreign trade.

The significance of pformation and upgrading lies in advancing the high-end industry chain and bringing China's industrial sector to the advanced level in the world.

Deng Yujun said that the solution of individual enterprises is to improve independent innovation and cultivate their own brands, replace low-end production capacity, and upgrade product grades. This will eventually lead to the formation of a mature technology capability and a complete development system for the whole industry.

"It is also important to tap new hot spots in the new economic environment."

Li Wenfeng said that from the perspective of light industrial products, although facing the global economic downturn, basic demand and new consumption hot spots are still there.

For example, people are more willing to beautify the courtyard when they are in poor condition, usually having a higher demand for bamboo products and outdoor products.

Many Chinese enterprises have worked hard in this field, which has become a new highlight of light industrial products export this year.

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