Dongguan Manufacturing Industrial Park Signed In North America

Recently, from

A group of entrepreneurs was formally signed with the US state of Arkansas. A 60 thousand square meter Dongguan manufacturing industrial park is expected to be settled in North America.

After entering Southeast Asia, Africa and other places, this time Dongguan enterprises stepped onto the Americas.

In recent years, in order to reduce the cost of enterprises, direct docking terminal customers and other reasons, the Pearl River Delta enterprises "go out" phenomenon, from Southeast Asia, Africa to the Americas.

After around the world, bosses from Dongguan began to focus on local security, business environment and legal protection. This is why Dongguan bosses chose to build factories in the United States at spared no expense.

On the one hand, the selection criteria of Dongguan's owners are changing, and on the other hand, the gravitational attraction brought by the "revitalization of manufacturing" in developed countries, including the United States.

Professor Chen Guanghan, director of the Hong Kong, Macao and Pearl River Delta Research Center of Zhongshan University, said that good market conditions and business environment sometimes attract more investors than cheap labor force.

The path of "made in Dongguan" is the embodiment of pformation and upgrading of manufacturing industry in Dongguan and even in China.

However, it is worth noting that if the enterprises going out can not get good development, they will become hollow in Dongguan or the PRD.

Amazing world

As early as ten years ago, many enterprises in the Pearl River Delta locked their eyes on Southeast Asia.

In 2004, the United States imposed anti-dumping duties on China, including traditional furniture manufacturing, clothing and footwear industries. Some enterprises either moved entirely or chose to set up factories in Southeast Asia.

Ceng Runkang entered Vietnam this year. "At that time, the idea was very simple, that is, to avoid the" anti-dumping "of the United States, Vietnam did not belong to the goal of the United States.

Ceng Runkang is a Sichuan native. After more than 30 years of fighting in Dongguan, he was colored in Dongguan mahogany furniture factory in Dalang.

Now, in Vietnam's Pingyang Province, its fine arts Furniture Co., Ltd. has two branches, "the old factory has more than 7000 square meters, the new factory has 25000 square meters, a total of four hundred or five hundred employees, the scale is generally in Chinese enterprises".

Unlike the location of mahogany furniture factory in China, Vietnam mainly manufactory furniture in Europe and America, all exported to the United States, Europe and other countries.

Today, Vietnam's factory has an export volume of 300-500 US dollars per month, which is equivalent to the annual sales of domestic factories.

"In the United States anti-dumping duties on China, up to 198% of tariffs, but no restrictions on Vietnam, this is our huge advantage of setting up factories in Vietnam."

Ceng Runkang's first factory in Vietnam was officially launched in 2005.

"When the language was blocked, we asked the local people to manage the factory."

Ceng Runkang recalled that when he arrived in Vietnam, all the workers who had come back were "lazy", most of them had the habit of "eating and sluggish", so they had to spend a lot of money to hire local experienced professional managers.

Today, the Vietnamese factory has exceeded its domestic factories in terms of output value or profit.

"As far as profitability is concerned, Vietnamese factories are more than three times more than domestic factories."

Ceng Runkang made an analysis of the reporter: first, on the labor cost, the average wage of Vietnamese workers is about 300 dollars, equivalent to 1800 yuan, including food and accommodation.

Wages for domestic workers, plus social security and so on, averaged 4000 yuan per month, two times that of Vietnam. Secondly, in terms of management and operation costs, including site rents, taxes and salaries, management staff salaries were much lower than those in China.

Take field rentals as an example. In the provincial capital of Vietnam, the rent of the best area is 1.8 dollars per square meter, while in Dongguan, even in the relatively remote location of Dongcheng Niu Shan, the rent will not be less than 25 yuan per square meter.

The most important thing is that Vietnam is much lower than the mainland in terms of the cost of raw materials procurement.

"For our furniture industry, at one time, Southeast Asian countries restricted the export of some mahogany raw materials, and only allowed the export of semi-finished products. If we returned to China in accordance with semi finished products, the cost would be much higher."

In addition to this, Vietnam has already established a fixed supplier of raw materials for the procurement of raw materials, and the price is relatively low. "Rubber wood is an example. The domestic price is about 3000 yuan per ton, while Vietnam only needs 1/3 of that price."

"How many types of enterprises have gone out and what types do we have? We do not make relevant statistics."

A person in charge of Dongguan Business Bureau admitted that this is indeed a missing link.

However, reporters at the Dongguan City Council for trade promotion have learned that Dongguan's "going out" enterprises are mainly traditional processing small and medium-sized enterprises. Even if there are large enterprises in the peripheral plants, the two ends of the "Smiling Curve" remain in Dongguan.

Take shoe enterprises as an example. According to incomplete statistics, the foundry shoemaking enterprises from Dongguan to Southeast Asia are mainly Taiwanese investors, and the destinations are mostly Vietnam, Kampuchea and other countries.

Before 2008, there were about more than 3000 Taiwan funded shoe enterprises in the Pearl River Delta. Due to shutting down and shifting, there are more than 1000 Taiwan funded shoe enterprises in the Pearl River Delta region, with a decrease of 1/3, most of them moving to Southeast Asia.

reshoring

Since the 2008 financial crisis, the Pearl River Delta

"Going out", in addition to the business behavior of the enterprise itself, is also promoted by the government.

Cao Yunhua, director of the Institute of Southeast Asian Studies, Jinan University, believes that in developing the ASEAN market, Dongguan can invest a lot of surplus capital in ASEAN countries to seek investment opportunities. On the other hand, it can make good use of ASEAN market to improve its own industrial structure adjustment and use geopolitical advantages to pfer a labor-intensive industry.

However, due to the continuous rising of labor costs in Vietnam and other places in recent years, the advantage of "low wage" in Southeast Asian countries is losing.

Wang Xinghua, director of Taiwan Footwear Association, said that the cost of labor in Southeast Asia has reached 1/2 in China today, and even some countries are close to the cost of the mainland.

Due to cultural differences, how to communicate effectively with local workers has become a problem that many enterprises have to face. In addition, the political instability of Southeast Asian countries has brought management trouble.

Chen Yaohua, former chairman of the Dongguan textile and garment industry association, bluntly pointed out that apart from the advantages of land and labor cost, Kampuchea and other Southeast Asian countries have several problems worthy of "Dongguan manufacturing" concern.

The first consideration is the political environment of the country.

Because stable climates are most important, strike and armed conflicts happen at any time, which seriously affect the production of factories.

The second is the employment problem. The local labor union has great influence on the rush hour and rush to catch up.

Third, the cost of water and electricity is relatively high, and local power supply is far from developed domestically.

Finally, the industrial chain of Southeast Asia is far less complete than Dongguan, and the quality of workers is relatively low.

Ceng Runkang also said Vietnam's business environment was poor, mainly from corruption in the government sector.

"Including fire, public security and other departments, often come to the door, brazenly asking for red packets, but since investing locally, they must also follow their rules of the game."

In addition, infrastructures, pportation and industrial support are all intimidating to some Dongguan bosses.

A shoe factory in Dongguan once wanted to move the factory to Vietnam to provide supporting services for the shoe enterprises to move out. However, after some investigation, the company official found that some of the resodied OEM shoemaking enterprises were relocated to Dongguan due to the lack of industrial support and the limited local market.

"Compared with the highly developed Chinese shoe industry chain, the upstream and downstream industry chain of Southeast Asian countries is still very imperfect. Some shoe factories have moved away, but many raw materials and accessories are still being purchased from Dongguan, which will undoubtedly increase the pportation cost of enterprises".

Wan Zhuopei, Secretary of Dongguan Houjie Town Committee, said in an interview before the media that whether it is self innovation or expanding the market, it can find a good allocation in Houjie, so these advantages make the original manufacturing enterprise (shoe industry) originally pferred out, and finally choose to return to Houjie.

Fight Africa

The move is not the mainstream, and more Guan enterprises will enlarge their horizons again.

Africa has become the second stop for Dongguan bosses to fight.

In April this year, Xu Jianhua, Secretary of the Dongguan municipal Party committee, went to Africa to carry out economic and trade exchanges with African delegations and business delegations. The African market has become the focus of attention of Dongguan entrepreneurs.

Before that, the Dongguan shoe giant Huajian company closed its factories in Southeast Asia and turned to Ethiopia.

In May 18th this year, under the guidance of Xie Yuzhen, Secretary General of the Chenzhou chamber of Commerce in Hunan, Dongguan, the delegation of seven or eight small and medium-sized entrepreneurs in Dongguan arrived in Tanzania.

Xie Yuzhen is the owner of a paper mill in Dongguan. He bluntly said that the cost of domestic labor is rising, and manufacturing enterprises are considering shifting. "Southeast Asian cost is too high. Can we gather some small and medium-sized enterprises together to open factories in Africa?

If we can take the upstream and downstream manufacturers over, most of the raw materials do not need to be imported from China.

This is the intention of this trip to Africa.

Before they arrived in Africa, Huajian, a local shoe giant in Dongguan, had long gone ahead.

"Huajian has invested tens of billions of dollars in Africa, and our small and medium-sized enterprises will not be able to do that."

In addition to the vigorous construction of the city, all the "made in China" sold on the streets of Tanzania excited the members of the delegation.

In the biggest shopping mall and the most busy trading area, India Pakistan street, the members of the inspection group found that the consumer goods here depend on imports, and the prices are several times that of China.

For example, a roll of paper sold in China is sold for more than ten or twenty pieces, and it costs 60 yuan here.

"Building factories in the local area has substantially cut tariffs."

Xie Yuzhen said this is why he wants to open a paper towel factory in Africa.

Peng Suhua is the owner of another injection molding machine manufacturer in Dongguan. His machine can produce various kinds of plastic products, such as beverage bottles and PVC pipes.

This trip to Africa almost made him lose confidence at the beginning: "the plastic industry in Tanzania has not yet started, and the downstream manufacturers have not yet developed. Who will I sell the machine to?"

But after three days of careful observation, he found business opportunities.

"There are lots of mineral water bottles in Tanzania, which are burned out directly after being used, and in the country, we all know that they can be sold for money."

Peng Suhua said that processing these plastic bottles into plastic granules can sell thousands to 10000 yuan per ton.

Factory rental is cheap, and Africa's labor cost is low, the monthly salary is only 100 dollars, but it has created several times of domestic profits.

"In fact, selling machines is not as good as producing these plastic products." in Xie Yuzhen's view, because of the underdeveloped African industry, the market for consumer goods made in Africa is growing fast.

So, from the end of last year, he sent processing equipment to Africa.

Production has not yet been fully launched, and the sales team has been established.

He collaborated with another Fujian businessman, Guo Dongjian, who had already "sneaked into Africa", to create a new paper towel brand Shwari, which was first shipped from Dongguan's factory.

In the past six months, the sales volume of Shwari has been the first in the locality.

Fatal injury

Costs are decreasing and profits are rising, but personal safety is the biggest risk.

Guo Dongjian, Deputy Secretary General of Tanzania General Chamber of Commerce, admitted that he had been robbed two times.

"Just opened a restaurant in 2005, invited a problematic security company. As a result, security guards came out of the joint with 8 people in 7 guns.

The chef downstairs was watching TV and was pushed to the ground.

Two guns were on top of my stomach and carried the safe away directly. "Guo Dongjian saved the first pot of gold so he was taken away.

The other time was in the office of the motorcycle shop, and a group of people came up with guns.

Fortunately, the large amount of cash has been deposited in the bank.

Therefore, in the larger Chinese factories in Africa, local security guards must be invited to apply for guns in Tanzania.

Language barriers are another major bottleneck for Dongguan enterprises in Africa.

"All instructions can only be used in sign language, and in the country, the workers will understand and teach here five or six times."

In Xie Yuzhen's African factory, there are now 3 Chinese resident, including director, general manager and factory supervisor.

At present, Xie Yuzhen stays in Dongguan most of the time, and most of the company's affairs are communicated through WeChat.

Because of language barrier, it is difficult to integrate into the local life. When it comes to the beginning, all kinds of discomfort will affect team morale.

Xiao Huo, who is responsible for marketing, has lived in Tanzania for two or three years. He speaks local Swahili dialect and can blend with locals.

But the other two Chinese executives, local languages and English do not speak.

Even now, Xie Yuzhen decided to re organize an investigation team and went to Africa in November this year.

"There are forty or fifty enterprises (enterprises), but we can only bring more than 30 of them in the past, and the products of these enterprises can not coincide, so we must match up, not vicious competition."

Professor Chen Guanghan, director of the Hong Kong, Macao and Pearl River Delta Research Center of Zhongshan University, believes that enterprises should not only strictly abide by local laws, regulations and cultural practices, but also strengthen exchanges and cooperation with local government departments, enterprises and people.

Jiang Lin, director of the Department of Finance and taxation of South of the Five Ridges College of Zhongshan University, further suggests that enterprises with "going out" should have a detailed understanding of local business, law, policy environment and public security environment.

For example, the labor law of the local government and the provisions of the insurance law should be understood in advance.

Secondly, the local tax law and tax system must be proficient in learning and prepared for everything.

Landing in the United States

Taking the Dongguan boss in Africa seems not satisfactory.

"Labor costs will definitely continue to rise, and Africa will become the next Southeast Asian, plus business environment and social security, we do not care about this."

The chairman of the China Association for the development of Cross Straits economic development, Jiabao, chief executive of Dongguan toy, and his team have been looking for a place where both fish and bear's paw can be shared. For this reason, he has gone all over the world but has finally chosen the United States.

"The enterprises that are going to Arkansas are mainly suppliers of WAL-MART, and Arkansas is also the headquarters of WAL-MART," said LAN Junxiong.

In Dongguan, many enterprises are WAL-MART's foundries. At present, the United States government advocates the revitalization of the United States to create, implement the country's priority procurement plan and provide the corresponding tax relief. WAL-MART, as a well-known large American enterprise, will focus on implementing the relevant policies to revitalize "made in the United States".

"So we are considering setting up factories in the United States and directly producing products in the United States. Is this" made in the United States "?

What Lan Junxiong means is that this can reasonably avoid trade barriers.

Wu Yongxue, vice president of the CPC Central Committee, also told reporters that there were more than ten enterprises participating in the United States project, and had talked with WAL-MART, a major customer, for 20 million times.

Bao Zan shoes, located in the houting community of Houjie, is one of the members of the "tyrant delegation" to the US. Mr. Cheng, director of the plant, said that in recent years, enterprises have visited Kampuchea and other countries for several times, but they do not believe that Southeast Asian countries are good foothold.

Mr. Zheng believes that in the past two years, the supporting and industrial chains of Southeast Asian countries are getting better and better, but labor costs are rising steadily, and the growth rate is faster than that in China.

Mr. Cheng said that after several thoughts, they chose the United States which has policy support, customers are more familiar with and the economic environment is more stable.

Dongguan bosses visited Arkansas this time, and found that the local land price was not high, even cheaper than that of Dongguan Houjie.

"We chose a factory building with a floor area of 60000 square meters as a processing base."

According to statistics, at present, three enterprises have decided to enter the processing base for children's products, toys, electrical appliances, and seven or eight enterprises.

"Last year, US domestic procurement policy in the US government policy amounted to US $25 billion, and the policy will continue for several years."

Lan Junxiong said that this opportunity gave the "local tyrants" a reassurance.

"Risk can not be denied. This is only the first attempt. If it works well, I believe there will be many successors."

cost reduction

For Arkansas, its economic situation is not good. Chinese enterprises will not only help increase their fiscal and tax revenues, but also increase their employment rate.

"According to the agreement, we need to recruit American workers."

Lan Junxiong said that the base will use at least 200 employees.

This has already belonged to large and medium-sized enterprises in the locality.

"The monthly salary of the state's general workers is more than 2000 dollars, and the conversion to RMB is more than 12000 yuan."

In Wu Yongxue's view, the high cost of production in the United States can be reduced by "technology".

"For example, the main body of our production enterprise is still in China, but only the semi-finished products are produced, and then the semi-finished products are exported to the processing centers in the United States to complete the final stage of production, and the production and processing step by step to eliminate the high cost."

Wu Yongxue uses a saucepan to invest in the advantages made by the United States: with a plain saucepan with a handle, it can be packed and a container can hold about ten thousand.

But if you remove the handle, the same container can hold more than ten thousand.

"For production enterprises, local production saves us a lot of pportation costs, and as our co buyer, we save warehousing costs."

Chen Guanghan, director of the research center of the Hong Kong and Macao Research Institute, believes that the investment environment of the United States has two very significant advantages. First, the market is relatively large, and has advantageous geographical advantages for the export of domestic products; two, the sound legal system, stable political situation and good business investment environment.

Compared with Africa, Southeast Asia and many other parts of the country, the most significant disadvantage of the United States is the relatively high labor cost. "But at present, the cost of labor in many Southeast Asian countries is also rising."

In Chen Guanghan's view, good market conditions and business environment are sometimes more attractive than cheap labor.

Eyeball.