Export Volume Drops To More Than Half Of Pearl River Delta, Shoe Enterprises Give Up Exports

The export volume of Guangdong shoes in February dropped by more than 30%. Under the influence of "internal and external troubles", foreign orders of shoe enterprises were halved, with the adjustment of tax rebate rate and the subprime mortgage crisis in the United States, the footwear industry, as one of the main export industries in Guangdong, is quietly retreating.

In the first two months of this year, the export of footwear industry in Guangdong decreased by 20% compared with the same period last year, while the enterprises in the Pearl River Delta region participated in the export footwear industry to 1512, less than half of the same period last year.

The export tax rebate rate reduction is one of the main reasons for the US subprime mortgage crisis.

Recently, Chen Hao, owner of Moby Bay shoe factory in Shijing, Guangzhou, said in an interview with reporters that in July last year, the state reduced the export tax rebate rate of footwear products by 2 percentage points, which undoubtedly increased the operating pressure of shoe-making enterprises whose profit margins were not high.

Hou Yujia, head of Guangzhou customs, confirmed Chen Hao's remarks with the data: "after the export tax rebate rate has been lowered, the export of Guangdong shoe enterprises is obviously affected.

Since September 2007, the monthly export volume of footwear products in Guangdong has continued to decline, of which only 18.5% in November compared to the same period last year, the largest decline in export volume last year.

After entering the 2008, the situation seems to be more severe.

The monthly export volume of footwear products continued to decline in Guangdong. In January, 290 million pairs of exports were exported, down 20.3% from the same period last year, and 200 million pairs in February, down 35.7% from the same period last year.

At the same time, affected by the subprime crisis in the US, the export of Guangdong footwear enterprises to the United States has also slowed down.

In the first two months of this year, Guangdong exported 190 million pairs of shoes to the United States, down 12%.

Besides, the number of export shoe enterprises has decreased by 1855. Besides, the introduction of the domestic labor contract law has further increased the operating cost of shoe enterprises.

With the aggravation of tax burden of foreign-funded enterprises and the constantly strengthened RMB exchange rate, the labour intensive enterprises in the Pearl River Delta region are gradually trapped in soaring costs and increasingly strict supervision, and the profit margins have been seriously squeezed.

It is understood that in the 1~2 month of this year, only 1512 enterprises in the Pearl River Delta region participated in export shoes, 1855 less than the same period last year.

Among them, the number of private enterprises decreased by 1484 compared with the same period last year, the number of foreign-invested enterprises decreased by 92, and the number of state-owned enterprises decreased by 23.

In addition, foreign trade and other anti dumping barriers are also one of the factors affecting export decline.

Jiang Dan Dan, head of Guangzhou customs and Excise Department, told reporters that under the influence of anti-dumping sanctions imposed by the European Union, 1~2 pairs of leather shoes were exported to Guangdong in the year of this year, and 13 million 300 thousand pairs of exports were exported, down 17.5% from the same period last year.

At the same time, Pakistan, Peru, Venezuela, Canada and other countries have also taken anti-dumping measures on China's footwear products.

Under the pressure inside and outside, the cost has increased dramatically.

According to Yang Junsheng, chairman of Guangzhou Shengji footwear industry, this year, with women's boots as an example, the cost of labor alone is 30 yuan per pair, an increase of more than 50% over 5 years ago.

"We have tried to minimize the number of foreign orders, and this year's foreign orders have been reduced by 50%."

In the first two months, the export volume of Guangdong shoes export destinations decreased by 12% compared with that of the US 190 million, and the EU 88 million 270 thousand double increased by 32.6%. Hongkong 47 million 30 thousand pairs decreased by 76.6%. This year 1~2 months Guangdong exported shoes 490 million 490 million, down by 27.5% over the same period last year.