Dongguan Foreign Economy and Trade Bureau Economic Bureau recently released the ‘bulletin of Dongguan’s Foreign Economy and Trade operating situation’ for the first half of 2009. The bulletin clearly shows a stabilizing and recovering foreign trade for Dongguan. This period witnessed 342 foreign-invested enterprises closing down or moving out of Dongguan. This figure has decreased by 18.57% when compared to the same period of last year.
"The situation will be even better in the second half of this year. Enterprises who have survived in the first half have shown a better counter-risk capability,” said Fan Shengjie the president of Blue Mountain Food Corporation.
Data shows that there were 714 enterprises closed or moved out of Dongguan during the first 10 months of 2008, the registered capital of which were mostly under US$ 1 million. 689 of the closed-down enterprises are traditional labor-intensive enterprises.
Absorption of foreign capital
In the first half, the city has absorbed US $1.32 billion yuan, a year-on-year increase of 7.71%, higher than that of the provincial level by 7.52% and the national level by 25.61%. Compared with neighboring cities, the increase is higher than that of Shenzhen by 2.59%, and of Foshan by 16.24%.
The quality of absorbed registered foreign capital has also improved as that of the tertiary industry is taking an increasingly bigger portion. In the first half, the city had signed 51 tertiary industry projects with a registered capital of US $ 11.3 million, dropping by 35.85%. Its rate of decrease is lower than that of the manufacturing industry by as much as 22.51%. The portion of foreign capital absorbed in the tertiary industry has been increased from 11.79% in 2008 to 20.26 in the first half of 2009.
The self-innovation capability of enterprises has also been improved. In the first half of 2009, a total of 10 research and development institutions had been set up in the city, twice of that introduced last year.
(By Tan Jing)