Shoemaking industry is undoubtly one of the mainstay industry in Wenzhou city that creates 70 billion yuan of annual output value and accounts for one third of local GDP. However many shoemakers in Wenzhou decided to transform outside or chose to quit as production costs and land costs increasing in a great extent, said a report released recently by Wenzhou municipal government.
Wenzhou once had 6,000 shoemakers but nowadays 2,000 are left. A recent survey on 15,521 SMEs conducted by Wenzhou Economic and Trade Commission shows the 8.1 of them are in suspended and half suspended production or bankruptcy, one third of them are shoemakers, in other word 420 of shoemakers ran into close, or half close.
In addition the shoe giants like Aokang, Kangnai, Belle and Dongyi have moved their production outside even to overseas. They believe that moving production to western areas from costal is trend of the industrial development.
The government report also shows the investment in shoemaking sector dropped 45.8% in the first three quarters in 2009, the industry only accounts for 1.4% of the total city s fixed assets investment that are much lower than the proportion of output value. CITATION http://www.chinaleather.org/eng/show.php?itemid=5909
Wenzhou once had 6,000 shoemakers but nowadays 2,000 are left. A recent survey on 15,521 SMEs conducted by Wenzhou Economic and Trade Commission shows the 8.1 of them are in suspended and half suspended production or bankruptcy, one third of them are shoemakers, in other word 420 of shoemakers ran into close, or half close.
In addition the shoe giants like Aokang, Kangnai, Belle and Dongyi have moved their production outside even to overseas. They believe that moving production to western areas from costal is trend of the industrial development.
The government report also shows the investment in shoemaking sector dropped 45.8% in the first three quarters in 2009, the industry only accounts for 1.4% of the total city s fixed assets investment that are much lower than the proportion of output value. CITATION http://www.chinaleather.org/eng/show.php?itemid=5909
