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Sichuan Earthquake "Earthquake" Does Not Collapse, East Shoes Shift Westward Confidence

2008/6/5 0:00:00 10314

Earthquake

June 4th, Chongzhou industrial area.

Zhejiang Chuan industry's shoe enterprise base construction is proceeding in an orderly way. The construction of 350 Mu plant has been completed more than half, attracting thirty or forty coastal shoe enterprises to enter.

"After the earthquake, we are still full of confidence in investing in Sichuan," said Yu Rongyue, chairman of Zhejiang Chuan industry and Wenzhou businessman. In the long run, Chengdu's unmatched advantages and cost advantages will not change as a city of women's shoes.

Yu Rongyue's view is quite representative among investors.

Sichuan, as an important province in the Midwest of China to undertake coastal industrial pfer, has not changed its attraction to eastern enterprises.

Economic experts believe that policy advantages and labor advantages after disasters will bring new opportunities for investors.

Sichuan will take the advantage of the big industry chain and continue to take advantage of the footwear industry after the earthquake. Whether Sichuan will postpone the pace of undertaking the gradient pfer of the eastern industry or become passive in its acceptance has become one of the focus topics of investors.

"The earthquake is only a temporary factor, rather than a long-term factor. Sichuan's advantage in undertaking the gradient pfer of eastern industry is still obvious."

Questioned by some of the industry's concerns, Peng Jun, general manager of shoes city in Western Sichuan, said that the earthquake did bring some impact on shoe enterprises, resulting in a shutdown of some enterprises for about a week, and the pfer of orders was also reduced compared with the same period.

But now 80% of the above enterprises have resumed work.

The impact of the earthquake on Sichuan's undertaking industrial pfer will only be limited to a very short period of time, which may postpone the industrial pfer plan, but it will not cause long-term and fundamental impact on the local economy.

According to Peng Jun, after years of development, Sichuan has a perfect industrial chain, and only Guangdong can match it among all provinces in the country.

The number of shoemaking workers in Sichuan has reached about 300000, accounting for 7% of the country's total.

Compared with the provinces of Jiangxi, Hunan and Anhui, which are closer to the coastal textile and garment industry base, Sichuan's biggest advantage is its own market capacity and effective radiation to the western market.

The main purpose of many textile and clothing and shoemaking enterprises to build factories in Sichuan is not to look at their production capacity, but to sell locally to reduce circulation costs.

For example, two star group, half of its revenue from shoes and clothing industry comes from its sales contribution to Chengdu centered southwest market.

"For us, there is no wavering in confidence in investing in the west," Liu said at the shoe market in Guangzhou. Last year, they decided to open a 200 million branch plant in Sichuan. At the stage of pre construction, it is expected to be put into operation next year.

After the earthquake or usher in preferential policies for reconstruction, new opportunities were brought forward. "We just sent away a group of Taiwan shoe companies who came to inspect in June 2nd, and signed a cooperation order with a coastal enterprise on the 3 day."

Li Yao, director of the two section of the Chongzhou Industrial Zone merchants Bureau, who is vigorously undertaking the gradient shift of the eastern footwear industry, told reporters that the park enterprises were not damaged during the earthquake.

Investment enterprises do not have doubts about investment prospects. On the contrary, there are still a large number of enterprises coming to investigate after the earthquake.

After 5 / 12, the industrial area has signed contracts with six or seven eastern coastal enterprises.

"Sichuan's prospects for undertaking industrial pfer are very promising," said Yang Ji Ji, deputy party secretary and professor of Southwestern University of Finance and Economics. "Sichuan has many advantages to undertake industrial pfer, such as Chengdu is the famous production base for women's shoes in China, and abundant raw materials and relatively low price labor supply.

At the same time, according to past experience, there will be big construction after disaster, and investment and market breadth will develop.

Policies to rebuild areas are often based on the rapid resumption of local economic development, and may introduce policies that are more conducive to undertaking industrial pfer, including taxation, which will further boost the confidence of western enterprises in the service industry.

"It is worth mentioning that the shoemaking industry is a labor-intensive industry, which is especially suitable for the disaster stricken people to resettlement. If they are vigorously developed, they will surely bring a win-win situation to the investors and the people in the disaster area."

Professor Yang said.

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