Profits Of Foreign Trade Enterprises Have Shrunk By &Nbsp; Some Enterprises In Yiwu Have Considered Moving Inland.

Affected by the rising cost of manpower and raw materials, and the appreciation of the renminbi against the US dollar,

Visit Zhejiang in recent days

Wang Hao (a pseudonym) and his wife run a crystal ornament factory for many years, in the small commodity city also has its own shop, products are mostly exported to Europe and the United States.

"Wages have been rising steadily over the past two years, and prices of raw materials and freight are also rising, and the exchange rate of the renminbi against the US dollar is also rising."

Wang Hao told the daily economic news reporter that he had to raise the price for the first time in 7 years after thinking twice, but the customer accepted the new price also needed a process, which also resulted in a sharp shrinkage in export profits.

A recent survey by Ningbo Municipal Foreign Trade and Economic Cooperation Bureau shows that the profits of foreign trade enterprises in Ningbo have shrunk this year. The total profit of nearly 40% enterprises surveyed has declined year-on-year.

Wenzhou economic and Trade Commission monitoring data also showed that in the first 3 months of this year, the sales value of 35 export oriented enterprises in the city decreased by 7% compared with the same period last year, and the profit dropped 30% compared to the same period last year.

Although export profits of Yiwu's foreign trade enterprises have shrunk sharply, statistics show that exports in the first quarter of this year still increased by 19.67% over the same period last year.

Many bosses of enterprises in Yiwu say that this is because businessmen sacrifice their profits to maintain the situation of continued export growth.

According to the "information special issue" published by Limited by Share Ltd of Zhejiang China Commodity City Group in May 12th, the pressure of raw material prices, labor costs, rising financing costs and RMB appreciation has pushed the export cost of enterprises to 10%~20%. The sharp rise in raw material prices has reduced the profit margins of products. Because of the limited bargaining power of businesses, the risk of rising raw materials can not be completely pferred by raising the prices of products.

Some enterprises consider moving inland.

Electricity shortage has also become a major obstacle to the development of SMEs in Yiwu.

Ge manager, a crystal export enterprise in Yiwu, told reporters that in the face of high rents and sharp increase in costs, enterprises have been losing money this year. In addition, they are also troubled by the shortage of electricity. Enterprises are struggling. Many enterprises stop to rest, others simply shut down.

An official in Yiwu said that the cost of enterprises is rising. Some enterprises will cope with the predicament through changing the structure of products and increasing productivity. Some enterprises will solve the dilemma by upgrading the industry through the way of going abroad.

Of course, a small number of enterprises are forced to close down or go bankrupt because they can not meet the needs of the market.

When reporters visited many small and medium-sized enterprises in Yiwu, some business executives also said that in order to reduce the cost of manpower and other costs, they have begun to consider moving the factory to Anhui, Hubei, Hunan and other places.