On April 4, Xinwen Lianbo of Central China Television broadcast the news “Rise to challenges to transform crisis into opportunity, steadily advance resumption of work and production”. The news briefed on work and production resumption of enterprises and major projects across the country and specially introduced Dongguan’s growth of trade orders amid the averse circumstances. According to the news, instead of a decline, trade orders of some manufacturing enterprises in Dongguan have been on the rise. They are now collaborating with enterprises at both upper and lower reaches of the industrial chain to accelerate work and production resumption and defy the odds to seize opportunities amid the crisis.
Multiple trade-oriented enterprises in Dongguan realized growth amid averse circumstances
Xinwen Lianbo captured footage of the busy and orderly production line of Dongguan Jingfu Knitting Co., Ltd. (hereinafter referred to as Jingfu Company). It is learned that during the pandemic, the manufacturing enterprise located in Liaobu town has experienced certain growth in its trade orders compared with last year. Its production line is now running at full capacity and is planning to add a new production line.
This is not an individual case. Since the outbreak of COVID-19, many trade-oriented enterprises, in the face of the complex trade environment, have been searching for opportunities amid crisis. They have blazed a path of growth against the odds through such measures as innovating products, changing operation and improving themselves.
Dongguan Somacis Graphic PCB Co., Ltd. mainly manufactures high-grade, precision and advanced circuit boards. Its clients include prominent giants such as the Boeing Company, Honeywell and AMD. The company’s order in the first quarter is up by nearly 20% year on year. According to Yang Zhijian, the person in charge of the company, the company enjoys a relatively high level of automation and deals with the high-end products that cannot be easily replaced in the market. Therefore, the company is less affected by marketturbulence.
Dongguan NVT Technology Co., Ltd. is a battery manufacturer located inDongkeng town. Its shipment in February and March is estimated to grow by nearly 50% compared to last year and the annual growth this year is predicted to be about 30%. Wu Hongbo, a veteran manager of the company expressed that the company has a good command of supply chain. Many counterparts in the industry lagged behind in work resumption because of supply chain, which led to transfer of orders to NVT Technology.
Cross-border export B2C business features a pillar business ofDongguan Tongxin Industry Investment Co., Ltd. who sells athleisure clothing on Amazon platform. From January to mid-March this year, the company’s the number of orders is ten times of the same period in last year. Since mid-March, hit by acute COVID-19 outbreak overseas, the company’s number of orders is still twice of the same period in last year.
Dedication (Dongguan) Printing & Packaging Factoryin Humen town has its products sold in Europe, America, Japan and Korea. In February this year, the company generated an output value worth of over 170 million RMB, up by 18% year on year. The estimated output value of March stands at 300 million RMB, up by 20.6% year on year.
Providing policy support for trade-oriented enterprises
Foreign trade constitutes a pivotal part of Dongguan. Along with the growth of trade-oriented enterprises under the adverse circumstances, Dongguan has been launching a series of supportive measures, creating a sound environment for their development and providing policy support for work and production resumption of enterprises.
It can be said thatDongguan has provided substantial policy support to help trade-oriented enterprises explore market. For instance, its subsidy for export credit insurance has been raised from 20% to 50%. Enterprises are entitled to a maximum annual subsidy of one million RMB.
The journalist learned from China Export & Credit Insurance Corporation Dongguan Office that the office has served over 4,700 enterprises in January and February this year, up by 20% year on year. The office has guaranteed export worth of 2.06 billion US dollars, up by 40% year on year and totally redeemed loss of domestic and overseas bad loans of about 63 million RMB.
Dongguan has also offered a specific trajectory in exploring new market. Exhibition and cross-border e-commerce are two popular aspects drawing wide attention from enterprises. Dongguan released a new “recommended catalogue of domestic and overseas trade fairs”, expanding the scope of exhibition by over 30%.
Many trade-oriented enterprises also encounter a common problem after work resumption with regard to dispensing of salary during the pandemic. To address this problem, the Bureau of Commerce of Dongguan City has worked with relevant departments and professional institutions to establish a legal service platform for enterprises with overseas businesses, providing them with free consulting services in legal issues.
To enhance convenience of goods import, customs departments have provided comprehensive support for trade-oriented enterprises in their work resumption ranging from declaration, warehouse logistics and capital turnover. With the congestion points being removed, the supply chain is picking up speed.
Source: timedg.com
