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Report of Foreign Trade of Small and Micro Enterprises of Ningbo
- Details
- Category: Ningbo Business
- Published: Tuesday, 27 December 2011 19:58
By October this year, Ningbo has 7,147 small and micro export-oriented enterprises, accounting for 72% of the total number (9,930) of the performing export enterprises. The following is a report of their present situation.
Entrusted by the Research and Development of the State Council, Ningbo Foreign Economic Cooperation Bureau released “Investigation Report of the Foreign Trade” of the small and micro export-oriented enterprises whose annual export is bellow 3 million US dollars in 2010.
The report shows that the small and micro enterprises are mainly engaged in the labour intensive industries like home appliances, light industrial products, metal products and textile products and that the export of high-tech products by these enterprises is obviously bellow the average of the city. Statistics show that from January to August this year, the export of mechanical and electrical products by the small and micro enterprises increased by 49.7% over the precious year, covering 58.5% of the total export of the city, 3.5 points higher than the average (55%) of the city. The export of hi-tech products by these enterprises increased by 41.9% above the same period of the previous year, covering 3.3% of the total export of the city, 5 points lower than the average (8.3%) of the city.
With respect to the source of funds for the enterprises, the report shows that a majority of the small and micro enterprises rely on their own funds. The enterprises investigated generally complain that the threshold for loans of banks is too high for the small and micro enterprises that banks do not have financial products that are fit for the small and micro enterprises and that they usually have to rely on their own funds or private loans to solve their financial problems, which are often high-cost.
The report concludes that the present situation is far from being satisfactory for the small and micro export-oriented enterprises of Ningbo.
From January to August this year, the export to the EU and the US by the small and micro enterprises of Ningbo has a rapid increase and the increase rate is relatively bigger than the increase of export to emerging markets. In the same period, the export by the small and micro enterprises to Africa, Latin America and ASEAN increased by 32.5%, 64.6% and 42.9% respectively, with the growth rates respectively 1.6, 1.9 and 1.3 times those of the average of the city.
The report shows that of the 7 difficulties listed on the questionnaire, 91% of the enterprises investigated believe the principal difficulty for them is the decrease of profit caused by the too fast appreciation of the yuan. 89.5% of the investigated enterprises believe the drastic increase of production cost and little rise of export price is one of their major difficulties. 59% of the enterprises investigated complain they have the problems of shortage of workers and the sluggish market demand
