The Grim Situation Of Foreign Trade &Nbsp; The Difficult Way For Wenzhou Enterprises To Survive.

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When enterprises face

Worries in economic difficulties

"At present, the enterprises in our city, especially small businesses, are faced with the following problems: excessive operating pressure, rising costs, tight money, and difficulties in production and operation. The appreciation of the renminbi makes foreign trade orders difficult. The drop in profits brings the focus from the real economy to the asset domain, the lack of foreign capital, the difficulty of financing" going out "enterprises, and the weakness of the outsourcing base.

Wenzhou City Commerce Bureau official told reporters anxiously.

A few days ago, the Wenzhou Municipal Bureau of Commerce investigated the three representative industries of footwear, spectacles and auto parts in Wenzhou. The data showed that the operating cost of the enterprises was high, the cost of footwear materials increased by 15%, the average monthly wage of employees was 2500 yuan, an increase of 20% compared with the same period last year, the cost of eye materials increased by 15%, the average monthly wage of employees was 2200 yuan, an increase of 10% over the same period last year, and that of auto parts materials increased by 10%, and the average monthly wage of employees was 3000 yuan, an increase of 20% over the same period last year.

As a result, enterprises have increased the export price of products to ensure the profitability of enterprises.

In September, the survey results of 196 enterprises in Zhejiang showed that 55% of the enterprises' main export prices increased over the same period last year.

"We increase the price and labor costs by 20%, and we can only rely on raising the export prices of certain products to maintain the operation of enterprises and ensure profits."

Pan Jianzhong, general manager of giant one group Co., Ltd., told reporters.

Giant one group Limited is a non regional enterprise group which integrates shoes, real estate, foreign trade, venture capital, entertainment and network technology.

In 2010, footwear exports exceeded US $100 million, an increase of 32.77% over the same period, and over 50 million yuan in taxes.

It has 16 advanced shoe making lines and 18 million pairs of annual production capacity. The products are exported to Germany, France, the United States, Spain, Eastern Europe and other countries and regions and inland China.

"Because of the economic weakness, we have relatively reduced orders since the beginning of this year, so as to ensure that enterprises can develop in a leisurely manner."

Pan Jianzhong sighed.

In the course of the interview, reporters found that while the export price increased, profits did not keep pace.

"In our survey, 47% of the total profits this year decreased compared with the same period last year.

Because the price of products can only be raised to a certain extent to ensure the export volume of enterprises, so that the increase of product prices will not offset the increase of production costs.

Wenzhou City Commerce Bureau official said.

In response, Pan Jianzhong responded to reporters, "this problem does exist.

We also raised some product prices this year. By August, the sales volume of our enterprises has increased by 16%. But if we consider the increase of production costs, we will have a discount on net profit compared with the same period last year. "

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And in the export market, Wenzhou is also faced with the difficult external environment of "going out".

"When enterprises invest abroad, the financing threshold of policy banks is too high and the financing products of commercial banks are scarce, and the financing channels of private enterprises are narrow and the guarantee system is not perfect. The assets formed outside the enterprise can not be mortgaged for domestic enterprise loans."

When it comes to the current financing difficulties of domestic enterprises, the director of Wenzhou Commerce Bureau said so.

Take many measures to adjust the strategy

According to the data of Wenzhou Municipal Bureau of Commerce, by August this year, the total import and export volume of the city reached 14 billion 160 million US dollars, an increase of 30.7% over the same period last year, of which 12 billion 50 million US dollars exported, an increase of 30.4% compared to the same period last year, and imports of US $2 billion 110 million, up 32.3% over the same period last year.

The number of newly approved foreign-invested enterprises was 13, a year-on-year decrease of 31.6%, 103 million 500 thousand yuan in contractual foreign capital, 58 million 510 thousand in real foreign investment, 60.6% in the same period last year, 6 projects with a total investment of more than 10 million US dollars, three 10 projects, accounting for 77% of the total number of projects in the city.

In the past, Wenzhou's Xintai group, one of the largest manufacturers of spectacles in Wenzhou, has been shutting down production (resumed production) and has not significantly affected the overall export business of the city.

"The main reason for the collapse of Xintai is the listing of enterprises and the blind investment outside the industry. Although there is a loss to the current export of Wenzhou's glasses, it has a limited impact on exports. After all, Xintai has a very small proportion. Other Wenzhou glasses manufacturers will be able to fill their market vacancies."

When asked whether Xintai would affect the overall export volume of Wenzhou, the responsible person of Wenzhou Commerce Bureau said.

In July, customs data showed that as one of the footwear enterprises affecting the export volume of Wenzhou, the giant group increased by 14.89% compared with last year.

Pan Jianzhong believes that the growth of the export of enterprises is related to the gradual improvement of the foreign trade situation of enterprises and Wenzhou as a whole.

It is reported that over the years, Wenzhou's foreign trade shoes are mainly exported to ASEAN and Europe, but many products have low price and low quality requirements.

"Now the EU's regulations on the sale and use of dangerous substances and preparations are the most comprehensive and stringent in the world, and we are facing the EU's strict" pick up "on Chinese shoes.

As early as 2001, we began to do business in the European Union and took the initiative to accept various tests.

Many shoes and raw materials are taken to Hongkong and abroad for testing. They cost a lot of manpower and money.

After this difficult period, the big one not only reached the EU standards, but also led a large number of raw materials suppliers to make progress together and achieve win-win results.

At the same time, we have increased the market share of the ASEAN region and achieved remarkable results.

Pan Jianzhong told reporters confidently that giant one will continue to grasp policy control and make full use of resources in the future development.

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Government to increase guidance

The head of the Wenzhou Business Bureau told reporters that in the first half of the year, the government accelerated the pformation of the mode of foreign trade development, promoted the balanced development of foreign trade, promoted the declaration and approval of export bases in an orderly way, and actively guided enterprises to promote sales. In the first half of the year, it organized enterprises to participate in the key international exhibitions such as Canton Fair, China trade fair, Kunming rendezvous, and overseas exhibitions and trade promotion docking activities such as Brazil and Australia, so as to further enhance the ability of enterprises to develop the international market.

At the same time, the government continues to strengthen the construction of early-warning points for foreign trade, and actively does a good job of eliminating a series of trade barriers outside the border.

"In the second half of this year, we will continue to carry out structural optimization to promote pformation and upgrading of enterprises."

He said.

In addition, the reporter learned that in the first three quarters of this year, Wenzhou imported 1 billion 143 million dollars from Asia, an increase of 51.7% over the same period last year.

In the same period, Wenzhou imported $413 million and US $262 million from the EU and the US respectively, up 25.8% and 40.6% respectively over the same period.

During the Canton Fair, in October 20th, the latest statistics of Wenzhou customs showed that the total value of foreign trade and import and export in Wenzhou in the first three quarters of this year was US $16 billion 252 million, an increase of 30.64% over the same period last year.

A few days ago, Jin Xiangrong, vice president of the school of economics and director of the Department of economics of Zhejiang University, expressed concern about the blind expansion of China's exports. He said: "at present, China's foreign trade situation is very grim. Given the weak recovery of the US, Europe and Japan, the situation in the next quarter will be even more severe."

Professor Jin Xiangrong believes that although foreign trade exports can increase employment, at present, the export environment in China is deteriorating, so we can not simply grasp foreign trade. Now our economic direction should be changed from looking at foreign trade export volume and expanding foreign trade market to paying attention to foreign trade export and paying attention to expanding domestic demand and expanding domestic market share.