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Economic Structure

Gradual Optimization of Industrial Structure: There are eight mainstay industries which have very apparent market leading status. Dongguan is now home to advantageous mainstay industries including electronics and IT industry, electro-mechanics, special mainstay industries such as the industries of textile and clothes, furniture, toys, paper manufacturing, paper products, food and drink, and new mainstay industries like chemical product industry, and it has formed a comparatively complete industrial system with full categories.

In 2007, the eight mainstay industries realized an added value of 93, 929 million yuan, or increased at 15.93% and accounted for 66.4% of the gross industrial output of the enterprises above the designated size throughout the city. Development approach to proper heavy industries is steady. The output of light industries was 248, 373 million yuan, or a growth rate of 15.5%, while the output of heavy industries was 333, 925 million yuan, or a growth rate of 16.6%, and the proportion of output of light industries to heavy ones was 42.7 to 57.3. Self-innovation achieved great progress. The gross value of high and new technological industries in this year was 219 billion yuan, 18.2% higher than that of the previous year. The amount of newly-found high and new technology enterprises was 71, resulting in a total of 369.

Developed Manufacturing Industries: “Made in Dongguan” is well-known in and out of China. Manufacturing industries have a tremendous strength and have formed a complete manufacturing system with full categories, perfect supporting facilities and advanced technologies, involving more than 30 industries and 60,000 products. The eight mainstay industries, such as electronics and IT manufacturing industry, electronic-mechanics manufacturing industry, textile and clothes manufacturing industry, furniture manufacturing industry, toy manufacturing industry, paper manufacturing industry, paper product industry, food and drink industry, and chemical product industry, have an obvious sustaining effect.

Dongguan’s manufacturing industries have perfect supporting industry system among the upstream and downstream products in the same industry and different industries. Dongguan’s IT industry has a significant status in the globe, and it is a vital production base of computer-related products in the world. Outputs and sales of more than 10 products such as computer magnetic heads and computer scanners account for 20% to 40% of the world market share. The matching rate of computer parts is up to 95%. Dongguan has been evaluated as National Electronics and IT Industry Base, and the Electronics and IT industry clusters of the Shilong town manifests this so well that it has been given the name of “Industrial Cluster Upgrade Demonstration Area of Guangdong Province.” Dongguan’s products of shoes, toys, furniture, textiles, and clothes have an important status in the domestic and abroad markets. For example, toys made in Dongguan have a share of 30% in the world market and that of shoes is higher than 10%.

Steady Development of Private Economy: In 2007, the private economy amount increased by 100.603 billion yuan, a growth of 19.3% over that of the previous year and accounted for 31.9% of the GDP of Dongguan Municipality. The total amount of tax revenue from the private economy section amounted to 18.26 billion yuan and accounted for 38.8% of the total tax revenue of Dongguan Municipal Government. The private economy section has been progressing towards technicalization, export-orientation, conglomeration, and brand establishment. By the end of 2007, the number of private enterprises in Dongguan reached 447.8 thousand with a registered capital amount of 82,591 million yuan. The numbers of provincial-level and municipality-level hi-tech private enterprises have reached 413 and 1500 respectively. More than 30 private enterprises are preparing for listing, among them nine are determined as the “Key Enterprises of Listing Guidance” in Dongguan and one has already been listed in Singapore. Most of the China Well-Known Trademarks, the Famous Trademarks of Guangdong Province, China Name Brand Products, and Famous-Brand Products of Guangdong Province are owned by private enterprises.

Substantive Advancement of Industry Technologies: Great efforts have been made by the government to implement the program of Scientific Dongguan. Since 2006, the Dongguan Municipal Finance Bureau has and will continue to invest one billion yuan each year in science and technology innovation for five consecutive years. Since the establishment of the Special Funds of Industry Technology Advancement in 2003, by the end of 2007, 394 key technical improving and innovative programs have been sponsored with 340.11 million yuan by various national, provincial, and municipal special funds. As for innovation platforms construction, technically innovative public platforms such as Guangdong Electronics Industry Institute, Dongguan Electronic and Information Institute of University of Electronic Science and Technology of China (UESTC), the National Key Moulding Technology Laboratories Dongguan Experimental Center of Central China University of Science and Technology, and others have been established. The establishment of the Dongguan National Spallation Neutron Sources Laboratory is being prepared and eight provincial-level professional township innovative platforms will be built. At present, there are 58 enterprise engineering program R&D centers in Dongguan. Dongguan is in the first batch of the provincial model city of combination among enterprises,universities and research institutes. Enterprises’ technical innovative system construction has been promoted and the first batch of 15 municipality-level Enterprise Technology Centers were determined. Sponsorship of 15 million yuan had been allocated to them by the end of 2007. With eight provincial-level enterprise technology centers and 369 new and hi-tech enterprises in the city, the independent innovation ability of enterprises is advancing constantly.

Great Achievements Result from the Economic Developing Strategy Driven by Famous Brands: The system of financial award to famous brands and trademarks has been established, with the top award for national-level famous brand/trademark being 1 million yuan. The number of famous brands has been growing consistently and there are 400 famous brands and trademarks of all kinds, of which 18 belong to China’s Famous Brand Names, 9 China Well-Known Trademarks, 76 national free-inspection brands, 2 national free-inspection export brands, one key famous export brands to be fostered and developed by the Ministry of Commerce of the PRC, 117 Famous Brands of Guangdong Province, 130 Famous Trademarks of Guangdong Province, 21 Harmless Agricultural Product brands, 22 Green Food brands, and four Organic Product brands.

Flourishing Commercial Circulation: Along with the proceeding of the Trading Dongguan Program, the commodity circulation in Dongguan presents good trends featuring prosperous consumption markets, consummation of trade facilities, expansion of new industries, and speedy development of emerging industries.

1. The operation of chain stores has been developing vigorously with the emergence of a series of domestic famous local chain stores such as Zhongyu Telecom, Meiyijia Convenience Store, Jiarong Shopping, Kung Fu Catering, as well as other chain stores. In 2007, Kung Fu established its 200th store in Shanghai to finish its distribution in major cities in China. The retail stores of Meiyijia Convenience Stores, Tenfu Tea Shops, and Xinglinchun Herbal Tea have been expanded to each city in the Pear River Delta. The number of retail stores of Meiyijia Convenience Stores reached 1500 and it was determined as participator of the National Project of Thousands of Villages and Townships;

2. The professional wholesale markets possess strong radiation effects and wide industry distributions, involving more than 20 industries. The major and professional wholesale markets including Senox International Agricultural Center, Jiangnan Agricultural Wholesale Center, Humen Fumin Fashion Market, Zhangmutou Grain Wholesale Market, and so on have been developed into the major distribution center of relative commodities. Besides Dongguan, they also serve surrounding cities and the entire South China area;

3. The community commerce is prosperous. The Dongtai Community in Dongcheng District, the Jinxia Community in Chang’an Town and the Wanjiang New Town have been determined as the National Community Commerce Demonstration Community. Twelve enterprises have won themselves the reputation of National Restaurant and Hotel, among which there are ten national special-class restaurants and hotels (five diamonds) and two national first class restaurants and hotels (four diamonds);

4. The modern logistics industry is proceeding steadily. With the Humen Port and the Changping Grand Beijing-Kowloon logistics base as key projects, several international famous logistics such as DHL, Mxller-Maersk, Ever Gain and others have settled down in Dongguan. Also, a series of local logistics enterprises such as Nanxin Logistics, Time-express Logistics, Huali Transportation and so on have enjoyed rapid development. Shatian Town, Machong Town, Changping Town and Zhangmutou Town have obtained the reputation of “the China Key Port Logistics Town”, “the China Modern Key Port Logistics Town”, “The Best Famous Logistics Town in China”, and “the Key Town of Plastics Trade in China” respectively.