Ninety Percent Of Hong Kong Enterprises Will Not Move Out Of The Pearl River Delta

According to the authoritative news from the Hong Kong Industry Association, 90% of the 70000 Hong Kong enterprises in the Pearl River Delta are unwilling to leave the Pearl River Delta. What makes Hong Kong enterprises so fond of the Pearl River Delta? Where is their way out? Recently, the 7th Hong Kong Pearl River Delta Industry and Commerce Joint Evening Party in 2008 was held. 1000 Hong Kong business elites and celebrities gathered in Jiangmen to discuss the future development of Hong Kong enterprises and the prospects of Guangdong Hong Kong cooperation.

Chen Zhenren, chairman of the Hong Kong Federation of Industry, pointed out in a recent interview: "At present, there are about 70000 Hong Kong enterprises in the Pearl River Delta region, with about 10 million employees. Affected by the financial tsunami, some of the manufacturers' low technology and low-grade products have been greatly impacted, such as footwear industry , textile and other consumer products. " Chen Zhenren said that according to the investigation of the Hong Kong Industry Association, since the financial tsunami, Hong Kong businessmen have not received orders from enterprises in the Pearl River Delta, accounting for an average of 30%. If the economy continues to be depressed, it is expected that in the next year, they may consider temporarily stopping production and continue to operate until the economy improves.

"In a recent survey by the Hong Kong Federation of Industries, as many as 90% of the companies interviewed said that they would not consider relocating their production activities in the Pearl River Delta." Chen Zhenren said that the biggest problem of the transfer is the rise in transportation costs. In addition, whether skilled workers can meet the needs is also a concern of manufacturers. He said that it is unlikely that Hong Kong enterprises in the Pearl River Delta will transfer to provinces and cities outside Guangdong, which has been talked about all the time.

Another important factor that affects the relocation of enterprises as well as capital is the complete industrial chain in the Pearl River Delta. "Compared with the mainland provinces, the same product produced in the Pearl River Delta costs only 100 yuan in the Pearl River Delta, but in the mainland provinces, the cost may reach 400 yuan." Chen Zhenren said that the Hong Kong Federation of Industry has also organized entrepreneurs to visit Hunan and other places, but it is not ideal. The lack of logistics supporting industries in the Pearl River Delta has directly affected the idea of enterprises moving abroad.

Song Zhaolin, vice president of Hong Kong Productivity Council, believes that SMEs in the Pearl River Delta should upgrade and transform in strengthening technological innovation when encountering the "cold current".

Chen Zhenren believes that there are only two ways out for manufacturers in the Pearl River Delta,

First, transformation and upgrading, from the previous processing mode of supplied materials to the production of high-tech, high value-added and innovative products with independent brands;

The second is the transfer of production base, which continues the production mode of relying on cheap labor and land in the past. However, according to a survey of Hong Kong businessmen conducted by the Hong Kong Federation of Industry, most of the interviewed Hong Kong businessmen said that transformation and upgrading is the fundamental way out in the long run.

Editor in charge: vivi