Pearl River Delta Business Environment 60% Hong Kong Businessmen Pessimism

According to the Hongkong economic daily, a survey shows that more than 6 of Hong Kong businessmen are pessimistic or even pessimistic about the future business environment of the PRD.

In the middle of 3 months, the China Federation of manufacturers conducted an investigation on the business environment of the Hong Kong businessmen in the Pearl River Delta, and sent over 3700 questionnaires to its members. A total of 230 valid questionnaires were collected.

Fear of more than ten thousand mainland Chinese enterprises going bankrupt

Yin Desheng, chairman of the association, said at a press conference yesterday that Hong Kong businessmen in the Pearl River Delta faced severe challenges in recent years, and citing the findings of the survey, pointing out that the most serious impact is mainly related to costs, including rising labor costs, rising prices of raw materials caused by inflation, and appreciation of the renminbi. The second is the impact of labor contract law and water and electricity supply.

Yin Desheng added that rising costs are the main causes of the grim business environment, so low-grade production and labour intensive industries have become "the hardest hit areas".

The cost is more than half expected to move to factory.

On the same occasion, Li Xiuheng, vice chairman of the association, added that nearly half of the respondents said that the overall production cost rose by 10% to 20%, and that more than half of the surveyed enterprises expected that the production cost will continue to rise 10% to 20% in the next two years.

Li Xiuheng mentioned that the new labor contract law led to a sharp rise in the cost of production, and the most important factor was the economic compensation and the non fixed term contract.

In the face of numerous difficulties, Li Xiuheng cited the findings of the survey as saying that more than half of the respondents believed that they could challenge the challenge through upgrading equipment and technology, or developing high value-added brands and moving factories.

Manufacturers will call on special agencies to help.

Although the central government has encouraged Guangdong manufacturers to move to the Midwest, more than half of those considering relocation have moved to less developed areas in Guangdong, and only about 2 of them are ready to move to the Midwest.

Pharmaceutical and other industries enjoy CEPA profit reflux

Li Xiuheng said that although most of the main industries were unable to move back to Hong Kong due to lack of skilled workers and other factors, individual industries such as pharmaceuticals would be exempted from the mainland by the CEPA.