粵港企業整合區域業務策略
Global supply chain transfer and industrial development in Guangdong and Hong Kong (6)
Guangdong Province and Hong Kong enterprises based on a series of factors, on the one hand a positive transformation and upgrading, enhance competitiveness, at the same time with the development of the Mainland and global supply chain trends, re-development of appropriate production and procurement business strategy. In order to understand the specific situation, the Hong Kong Trade Development Council, in cooperation with the Guangdong Provincial Department of Commerce, visited some of the Guangdong enterprises engaged in manufacturing and trading in the second quarter of 2017 to understand the specific factors that they considered when planning their business strategy. At the same time, The Board also visited some enterprises in Hong Kong. The following is a summary of the respondents in the business layout of the specific considerations:
Guangdong Province and Hong Kong enterprises to actively upgrade and upgrade (a).
Guangdong Province and Hong Kong enterprises to actively upgrade and upgrade (b).
- Towards the development of automated production
China has a mature supply chain system, coupled with efficient logistics services and other advantages, many overseas areas is difficult to compare. Facing the challenges of upgrading wages and costs, upgrading the plant and introducing automated production equipment can alleviate some of the problems. In particular, for technology-intensive manufacturing operations, non-skilled labor wages account for only a very low cost ratio, but require experienced technician support, but the transfer of production to low-cost areas in Asia to face the shortage of technicians.
- Give priority to business orientation
Accurate market positioning and business sustainability are key considerations in planning future business development. For high-tech or high-end consumer goods business, market competition is not the use of low-cost promotions to grab the market at low prices. Most of the enterprise development strategy focused on the development of the brand, improve product quality and technical content, increase product value and achieve the purpose of transformation and upgrading.
- The use of Southeast Asia to support the Mainland high-end production activities
However, the transfer of part of the low value-added production activities to overseas is one of the options to cope with rising costs, in addition to simple light industrial products, some companies are also considering the transfer of some parts or industrial materials production, and arrange to return these industrial materials Support the Mainland's high-tech production activities. In view of the fact that some Asian regions such as the Philippines and Cambodia have only relatively basic production conditions, the transfer of production mainly concentrated labor-intensive and acceptable long delivery period, the product life cycle of light industrial products and spare parts.
- Consider the overall cost-effectiveness
In addition, overseas direct investment must also take into account the cost of transportation, logistics, material supply and management, and measure the overall market efficiency, rather than only consider part of the direct production costs. On the one hand, most of the low-cost areas lack the mature supply chain, the need to import most of the raw materials from the field to support local production, in addition to increasing the cost of transport logistics, the longer the production cycle may not be able to help investors grasp the ever-changing international market opportunities.
- Market demand directs direct investment
Regional production layout to take into account the final market demand in order to provide customers with strategic production services. For example, to go to some Asian countries and " along the way " to invest in the country set up factories, the production of products sold locally can avoid import tariffs, even if the arrangements did not meet the minimum cost, but the development of local or neighboring markets may have strategic advantages. Some companies will choose to set up production lines in advanced countries, in addition to lower import tariffs, but also in the local market to provide better sales and after-sales service, help to enhance the brand image and related business value.
- Foreign trade measures affect production layout
In addition to overseas production to avoid trade barriers, including anti-dumping measures against the Mainland products, foreign trade in some developing countries, tariff concessions, can also be involved in the region to invest in production or procurement incentives. But the selected production site must have a certain degree of development of the supply chain, or have a more convenient transportation network, so that enterprises from China or other places to transport key components to support the local production business
For example, the United States is currently developing in Burma and other relatively backward countries (Least Developed Beneficiary Developing Countries, LDBDCs ) about 5,000 kinds of products (since July 2016 include travel goods), from Cambodia, the United States GSP under (GSP) To give preferential treatment of preferential treatment [1]. In the new EU preferential tax system (effective January 1, 2014), from some Asian countries such as Indonesia, Vietnam and other beneficiary countries about 66% of the EU tariff items can enjoy tariff concessions; and Cambodia, Myanmar And Laos are listed as "Everything But Arms" beneficiary countries, that is, the EU for all products derived from these countries in addition to weapons, are exempt from import duties.
Details of the specific cases of some of the companies surveyed are listed below.
To play the synergistic effect of regional production: visit Luen Thai Holdings Limited
Market Benefit Navigation Investment Strategy: Visit Guangdong Keda Jieneng Co., Ltd
Increased Product Value: Visit Mendel Precision Oral Medical Devices Ltd
Strategic global production layout: Visit the US group
For more information, see:
Global production pattern changes to promote growth in the Asian supply chain
The transformation of the Asian textile and garment industry supply chain
Asian electronics industry supply chain rapid growth
"Made in China" role transformation
The Relationship between Global Supply Chain Transfer and Industrial Development in Guangdong and Hong Kong (Summary and Suggestions)
[1] The measures do not include a variety of textiles, clothing, shoes, watches and other products.
Data provided 
