Thousands Of Shoe Companies Are Leaving Guangdong For Nothing.

For a long time, there are four rumors about the "withdrawal tide" of foreign capital in Guangdong.

In particular, recently, the news reports of thousands of Guangdong shoe enterprises have closed down, which aggravated people's worries about the future development of the processing trade and the suspicion of social and economic stability in the Pearl River Delta region.

Is the actual situation as serious as some media reveal?

Reporters recently conducted a survey on the relocation of foreign-funded enterprises in Guangdong.

Recently, thousands of shoe enterprises evacuated Guangdong's news, has aroused widespread concern in the community, but also affects the top nerves of Guangdong province.

Under the special instructions of the leading leaders of the Guangdong provincial Party committee and the provincial government, the Guangdong provincial foreign trade and Economic Cooperation Department has set up a special research group recently. The leaders of the five departments are divided into five roads. The relocation of the foreign-invested enterprises in the province (including the "three to one patch") has been investigated, and the five cities of Shenzhen, Dongguan, Guangzhou, Foshan, Zhongshan and Huizhou, which are relatively concentrated by foreign-funded enterprises, have been verified.

The head of the Guangdong provincial foreign trade and Economic Cooperation Bureau told the newspaper reporter: "some media reports are not objective, and they do not know the status quo of foreign invested enterprises in Guangdong province."

According to the survey data, only 244 foreign-invested enterprises actually moved in Guangdong in 2007, and 28 planned relocation, involving sales of 1 billion 214 million yuan and 13814 employees.

In the case of Dongguan, which is highlighted by the media, there are more than 15000 foreign-invested enterprises in the city, 909 of which are cancelled and revoked in 2007, involving 1 billion dollars in foreign investment, 114 in pformation enterprises, 94 in foreign-invested enterprises, 20 in private enterprises, 40 in relocation enterprises, and only 2 in footwear enterprises.

In 2007, there were more than 700 new foreign-invested enterprises in the city, with a contractual foreign capital of US $6 billion.

The person in charge stressed that although the number of cancellations and revoked enterprises in Dongguan was larger than that in the new enterprises, the contractual foreign capital involved in the new enterprises was much larger than those in the cancelled and revoked enterprises, and the quality of the enterprises was better.

"Overall, there has been no large-scale closure and relocation of foreign-funded enterprises in Guangdong, and the closure and relocation of foreign-funded enterprises are generally at a healthy level of development."

The official pointed out that in fact, every year, a batch of foreign-funded enterprises will be closed off in the industrial and commercial sector in Guangdong.

According to statistics, in the 28 years of ~2007 in 1979, the average number of foreign-funded enterprises was closed 2531 per year.

Among them, in 2005 ~2007, the number of foreign-funded enterprises written off in the province was 668, 747 and 813, and the number of revoked was 3475, 3543 and 3118. In the same period, the newly approved foreign direct investment enterprises in the province were 8384, 8452 and 9506 respectively.

The total number of foreign-funded enterprises in Guangdong has maintained steady growth after the increase or decrease.

The person in charge said.

"The relocation of enterprises has shown several characteristics."

The official analysis pointed out: first, the relocation of small and medium-sized enterprises.

Of the 40 enterprises relocated in Dongguan in 2007, there were 29 enterprises with less than 1 million foreign capital contracts, accounting for 72.50% of the total number of relocation enterprises, and 8 of the contracted foreign capital of 1 million ~300 million, accounting for 20% of the total number of enterprises shutting down.

There are two additivity contracts, and the relocation enterprises with foreign capital below 3 million dollars amount to 37, accounting for 92.50% of the total number of relocation enterprises.

Secondly, the relocation enterprises are mainly labor-intensive traditional manufacturing industries, mainly distributed in hardware, toys, clothing, shoes, plastics and other industries.

Dongguan relocation enterprises belong to the above 27 industries, accounting for 67.5% of the total relocation, involving 4422 employees, accounting for 67.30% of the number of relocation enterprises (most of the relocation enterprises can do the staff relocation with the factory, properly resettled, did not cause social fluctuations).

Among them, there are 6 plastic products, 5 textile and garment industries, 3 paper making and sports goods manufacturing, 3 furniture industry, 3 hardware products, 3 waste resource and waste materials recycling processing industry, 2 shoe making and shoe products industry.

Thirdly, the relocation enterprises are mainly based on Hong Kong and Taiwan, which correspond to the structure of Guangdong's absorption of foreign investment.

Hong Kong funded Taiwanese enterprises accounted for more than 90% of the total number of relocation enterprises, and the proportion of enterprises in developed countries such as Europe, America and Japan was relatively small.

Fourth, relocation enterprises are mainly concentrated in the Pearl River Delta region, and the relocation destinations are mainly in the province.

The largest number of relocation enterprises are Dongguan and Shenzhen.

In 2003, ~2007 moved out of Shenzhen and registered 180 enterprises in the industrial and commercial sector. 85% of them moved to Dongguan, Huizhou and Zhongshan. 82.5% of Dongguan's relocation enterprises moved to Huizhou, Heyuan and other provinces.

In addition, a small number of enterprises go to the Yangtze River Delta region and other countries.

Finally, the relocation of some enterprises and the rapid growth of foreign direct investment coexist.

Despite the relocation of some enterprises in recent years, Guangdong's absorption of foreign capital is steadily increasing, and the quality and level of foreign capital are also improving.

In 2007, 9506 new foreign direct investment projects were approved in Guangdong, and the contracted foreign capital amounted to US $33 billion 938 million. The actual absorption of foreign capital was US $17 billion 126 million, up 12.47%, 38.14% and 18.02%, respectively, the highest in recent years.

In 2005 ~2007, the number of foreign-funded enterprises registered in Guangdong was 58762, 61999 and 66789, with an average annual growth of 6.62%, maintaining a steady growth trend.

The responsible person believes that the market competition is inferior to the fittest, and some enterprises lacking competitiveness are eliminated or relocated as a normal market phenomenon.

In order to promote industrial pfer, Guangdong needs the low value-added and labour intensive enterprises to pfer outwards, so as to make room for high-end manufacturing and modern service industries to upgrade the level of industrial structure.