The Closure And Rebirth Of Dongguan Garment Enterprises

By the end of 2007, a town in Humen, Dongguan, Guangdong had left 200 enterprises.

In 2008, a large number of foreign workers were evacuated, and factories that did not leave were empty shells.

Dongguan Humen town is famous for its clothing industry, and there are more than 1400 foreign-funded enterprises.

"Overseas buyers such as the US and Europe will not accept new quotations after rising costs."

Local industry insiders in Dongguan say that taking orders again means losses.

Enterprises in the Pearl River Delta are facing an increasingly tight network.

"International environment

The slump, energy price, raw material price increase, labor cost increase and RMB appreciation "have been called the four economic ropes for prying the Pearl River Delta enterprises' throat.

"Fundamentally speaking, the core problem of Dongguan's export oriented enterprises is the contradiction between falling demand and increasing competition, that is, the global demand has declined sharply, especially the US subprime mortgage crisis has triggered an economic recession. At the same time, manufacturing industries in Southeast Asia and other emerging countries are developing rapidly, competing with" Dongguan manufacturing ", while" Dongguan manufacturing "has led to a significant increase in cost and weakened competitive advantage due to factors such as RMB appreciation.

He, who served as the chairman of the Dongguan Taiwan Businessmen Association, analyzed the situation of "Dongguan manufacturing".

However, this result may have been foreseen by the government.

"Do not worry too much about ten homes every day," said Luo Ziqiang, deputy director of the labor employment service management center of Dongguan Labor Bureau.