Rebirth of the Industrial Tycoon

Chapter 516 Industrial Transfer

Japanese economists put forward a theory of flying geese, which is actually revealing a process of shifting manufacturing on a global scale.

After entering the 1990s, low-end manufacturing and labor-intensive manufacturing began to shift to China and ASEAN countries.

These low-end manufacturing industries, as well as labor-intensive manufacturing industries, are precisely the first step in the development of manufacturing in developing countries.

The development of the manufacturing industry is gradual. A country's manufacturing industry cannot start at the mid-to-high end. All the major manufacturing countries in the world start from the low-end.

Even in the United States, clothes and shoes were produced in the 1950s. At that time, madeinUSA's shoes were all over the world, and even poor Africa was made of American-made textiles.

Starting from low-end manufacturing, gradually accumulating capital and technology, and then gradually moving towards mid-to-high-end manufacturing, this is the only way for every manufacturing powerhouse.

In the early 1990s, in addition to China, there were also Southeast Asian countries that embarked on this manufacturing road.

Japan has transferred low-end manufacturing and labor-intensive manufacturing to China and ASEAN, and because Thailand, Malaysia and other "Asian Tigers" countries have a higher degree of openness, the investment amount of Japan or Western countries in Southeast Asia is more It is also much higher than that of China.

According to the normal development trajectory, after the ASEAN countries have accumulated capital and technology, they will start to upgrade their industries and enter the mid-to-high-end manufacturing industry.

However, an Asian financial crisis has interrupted the progress of the manufacturing industry of ASEAN countries.

After the outbreak of the Asian financial crisis, the manufacturing industries of ASEAN countries began to shift to China. Without manufacturing, the so-called "Four Asian Tigers" will no longer be able to regain their former glory.

During the Asian financial crisis, the international financial giants were busy harvesting the wealth of Southeast Asia and made the first wave of money; while Western countries took advantage of the robbery by waving US dollars and bought a large number of assets from Southeast Asian countries at low prices, earning the second wave profit.

However, no one has noticed that the real cash cow of ASEAN countries is their manufacturing industry. The so-called "Asian Four Tigers" can achieve rapid economic growth and accumulate wealth in a short period of time because of their manufacturing industries.

As far as Southeast Asia is concerned, as long as the manufacturing industry is still there, even if it was severely damaged by the financial crisis, it will recover sooner or later.

But Southeast Asian countries did not realize this. During the Asian financial crisis, their response was mainly in the monetary and financial fields, while ignoring the protection of the manufacturing industry.

South Korea has done better in this regard. Although major Korean companies eventually became foreign-controlled companies, they still managed to keep their manufacturing industries.

The manufacturing industry is still there, and there is hope for a turnaround. It is these manufacturing industries that finally made South Korea step into the threshold of developed countries. If South Korea does not retain its manufacturing, it may be difficult to break out of the middle-income trap.

During the Asian financial crisis, monetary and financial looting, or buying assets while looting, are all means of short-term profit.

Taking away the manufacturing industry in Southeast Asia is the real big fish that has been caught with a long line.

Japan has spent more than ten years investing in Southeast Asia, and has finally established a manufacturing system. Although it is mainly based on low-end manufacturing and labor-intensive industries, its industrial scale is enough to lift 400 million people out of poverty and become prosperous. .

Compared with the industrial system that can provide living security for 400 million people, the 10 to 20 billion dollars earned by the international financial giants is really not worth mentioning.

Li Weidong is in the industry. He knows that the manufacturing industry is the foundation, so when the Asian financial crisis broke out, he began to plan and plan to snatch the manufacturing industry in Southeast Asia.

From the perspective of national development, Li Weidong's move is more ruthless than Soros!

Soros is at most a pig, who looted a fortune in the monetary and financial field, and only ate a few ginseng fruits.

Li Weidong's seizure of the manufacturing industry directly broke the foundation of the development of Southeast Asia. It is equivalent to Sun Wukong, who stole the ginseng fruit and uprooted other people's trees.

Without manufacturing, it will be difficult for Southeast Asia to accumulate wealth in the future.

Absorbing the manufacturing industry in Southeast Asia is also a process of ups and downs. You don't have the manufacturing industry, and I have the manufacturing industry. At that time, I can sell the products to you and make money from you.

Over time, I will get richer and richer, and you can only stay poor.

...

At the Puppy Electric headquarters, Wang Jiuyang looked at the new soymilk maker in front of him with an expression of admiration.

At the same time, Wang Jiuyang was still babbling: "Chairman, this new soymilk maker is a good thing. I have improved the original technology, not only to adjust the concentration of soymilk, but also to improve the materials.

The current soymilk maker is not easy to stick to the pot, and it is not easy to stick to the pot, and it is very easy to clear. Basically, it is clean when you rinse it with water! No longer do you have to take it together, you have to use a brush to brush it hard! "

Li Weidong sighed helplessly. He intends to train Wang Jiuyang to become the CEO of Puppy Electric, and will be fully responsible for the operation of Puppy Electric in the future.

However, Wang Jiuyang has always been keen on the research and development and production of soymilk machines. For other products, he is far less focused than soymilk machines.

There is no way, this guy Wang Jiuyang really loves soy milk!

Li Weidong had no choice but to say: "Jiuyang, put the soymilk maker aside first, let's talk about the price reduction of microwave ovens first."

"The price of microwave ovens is reduced? Will there be a price war again?" Wang Jiuyang asked subconsciously.

Li Weidong nodded: "Last time, we lowered the price of microwave ovens to less than 1,000 yuan. This time, I plan to make a 50% discount, and strive to reduce the price of microwave ovens to less than 500 yuan by the end of next year!"

"500 yuan? So cheap?" Wang Jiuyang was shocked, and then said, "In this case, the average working class can also afford a microwave oven!"

"Yeah, I strive to make every Chinese family use a microwave oven." Li Weidong said.

"If it drops to 500 yuan, will we still have a profit? Maybe we will lose money!" Wang Jiuyang said.

"With the advancement of technology and the improvement of productivity, the price of parts and components will gradually decrease. In recent years, the price of our purchased parts and components has been decreasing!"

Li Weidong paused, then said: "The more important thing is to expand the scale of production and reduce costs through large-scale production. And the larger the scale of production, the more voice you can have when purchasing parts and components. !

In this regard, I have asked the factory to come up with a plan. In the next two years, we will expand the microwave oven production line to an annual output of 10 million units. In other small household appliance industries, the production scale will also be doubled!

The price reduction will inevitably stimulate market demand. As you said, a microwave oven costing 500 yuan can be consumed by ordinary working families. There are hundreds of millions of working families in China, which means that we have hundreds of millions of microwave ovens. market.

And this market is still growing. In the future, the income of ordinary people in our country will increase, and the demand for microwave ovens will also increase, not only in cities, but also in rural areas.

This is just a microwave oven, other small appliances also have huge market potential. This cake is really too big, I don't expect to be able to eat it all, but at least I have to be the boss of the industry! "

...

Most of Thailand's industry is concentrated in the capital Bangkok.

Back in the 1960s, Thailand formulated an ambitious industrial development plan that would build an industrial zone centered on Bangkok.

It is a pity that this plan has not been realized. In a country full of illiterates, it is undoubtedly a dream to enter into industrialization.

If you want to take the road of industrialization, you must first start with education. Only when all citizens have received the most basic education can industrialization have the soil for growth.

Later, when the Vietnam War broke out, Thailand became an important rear base for the United States. At this time, Thailand seemed to see an opportunity.

In those days, Japan, as the rear of the United States during the Korean War, provided various materials for the United States, thus earning the first pot of gold, and quickly recovered to the economic scale before World War II, and later became the second largest in the world. large economy.

Thailand is also eager to replicate Japan's success, so the Thai government once again issued a decree, proposing the establishment of an industrial zone, hoping to realize the industrialization and modernization of Thailand.

However, Thailand's ideal of industrialization is too wishful thinking. They do not have the industrial base like Japan, and Southeast Asian countries do not have the discipline of Northeast Asia. It is no doubt that they want to replicate Japan's success.

With the end of the Vietnam War and the withdrawal of the United States, Thailand's industrialization failed again.

Until the 1990s, in order to attract foreign investment, Thailand opened a series of financial restrictions, and capital from Japan entered Thailand on a large scale, which made Thailand restart the road of industrialization.

It's just that Thailand lacked reasonable industrial planning at that time, so that most of the investment was concentrated near the capital Bangkok. By 1997, Bangkok was already crowded.

If you look at the development of Bangkok alone, anyone will feel that Thailand is a thriving land, with factories rising from the ground, as if a new industrial civilization is emerging.

However, in the process of rapid development of Thailand, it has not laid a solid economic foundation. The seemingly booming industry has not actually formed a complete industrial system.

At that time, Thailand's manufacturing industry was mainly based on the assembly and processing of products, and the upstream and downstream of the industrial system were not in Thailand's hands.

Most of the industrial raw materials and components required by Thailand's manufacturing industry depend on imports. Thailand's export-oriented economy also means that Thailand has no say in market pricing.

The outbreak of the Asian financial crisis has brought Thailand's manufacturing industry back to its original shape.

In July, the day the Thai baht gave up its fixed exchange rate, it depreciated by 17%. In the following two weeks, the value of the Thai baht depreciated by more than 30%.

The price of industrial raw materials and components imported by Thailand's manufacturing industry has risen by 30% in an instant, which is an unbearable burden for the entire Thai manufacturing industry.

...

At Hitachi Microwave's factory in Bangkok, workers sat cross-legged on the floor of the workshop, chatting and joking, but the production line not far away had already stopped.

The workers are on strike!

As for why the strike, of course, is to demand a wage increase.

The devaluation of the Thai baht brought about by the financial crisis has caused serious inflation in Thailand. Various industrial products are priced at one price a day. This has also led to a rise in the price of agricultural products, which has caused soaring prices throughout Thailand.

Since prices have risen, wages should follow suit, so the trade unions demanded that workers be given higher wages. The demand for a raise was then rejected, and the workers went on strike.

In the process of Thailand's development, the advantages of the West have not been learned much, but they have learned a lot in this regard. If you look at Thailand in later generations, you will know that people protest in the streets whenever they disagree, and Bangkok is paralyzed every three days.

Strikes like asking for a raise or improving the working environment are reasonable demands. But it's a bit too much to learn from Northern Europe and engage in some kind of meteorological strike.

The Nordic countries are the children of the landlord's family. The family has surplus food, and they can do nothing for a lifetime, and they can also have enough food and clothing. So when people are full, they find an excuse to go on strike when they have nothing to do, and take a two-day rest.

But Thailand is not as rich as the Nordic countries, and what kind of climate strike is it?

Japanese executive Ryota Yamamoto, although he has been in Thailand for five years, still can't understand the behavior of the Thais who are on strike every three days and two ends.

Japan implements a lifetime employment system. Workers will increase their wages or be promoted as their working years increase. Although this system cannot reflect distribution according to work, it is fair to everyone. So few people in Japanese companies go on strike.

On the contrary, when the enterprise encounters difficulties, the laborers will advance and retreat together with the enterprise, and even help the enterprise to tide over the difficulties even without salary.

The strikes in Japan are often industrial strikes, such as strikes in the railway industry and strikes in the medical industry. The strikes are aimed at the entire industry, not a single enterprise.

Although Yamamoto Ryota did not understand the Thai strike, but faced with the workers' strike, Yamamoto Ryota still had to deal with it, so he found Long Chai, the leader of the trade union organization, and started negotiations.

The trade union leader Long Chai looked arrogant and said, "Mr. Yamamoto, the price of goods in Bangkok has increased by 30% in the past month, and our wages are now beyond our means!

So our union demanded that starting next month, our salary should also be increased by 30%. And in the next year, a monthly salary increase of 3% will be required to cope with the rising prices in Bangkok! "

After listening to this request, Yamamoto Ryota shook his head: "Mr. Long Guess, you must know that rising prices will not only make you feel the pressure, our management also has cost pressure.

At present, the prices of parts we import from overseas have also been soaring. At the current price, every time our factory produces a microwave oven, we will lose money. If the baht cannot be kept stable, this factory may not be able to do it!

The closure of the factory is not good for all of us. For the sustainability of our factory and for everyone's jobs, I hope Mr. Longchai can persuade the workers to return to work, and let us work together to tide over this crisis! "

"Stop shutting down the factory to scare people!" Longchai curled his lips and continued, "If you can't meet the union's request for a raise, we won't start work!"

Yamamoto Ryota narrowed his eyes angrily: "Mr. Longchai, why can't you see the current economic situation! If the factory continues to maintain production, even if there is a slight loss, the Japanese headquarters may allow the business to continue.

If you don’t start work and continue to consume like this, then the factory will lose its value, and the Japanese headquarters will really shut down the factory. By then you will be out of work. "

"We can't starve to death without work! But this factory has to fulfill orders for tens of thousands of microwave ovens every month, right? If we don't start work, what will you use to deliver the orders!" Longchai threatened.

Yamamoto Ryo frowned fiercely. As Long Guai said, if the order cannot be delivered on time, it will still have an impact on Hitachi Electric. In addition to economic losses, it will also affect Hitachi's reputation.

After a long time, Yamamoto Ryota still said, "Well, regarding your demands, I need to ask the headquarters in Japan to give you an answer!"

"Okay, I'll wait here for you to ask your superiors!" Long Guai leaned on the sofa, raised Erlang's legs, took out a magazine from his pocket, and began to look through it, apparently doing a good job for a long time. Preparation for battle.

Yamamoto Ryota sighed helplessly, then went to another room and called the headquarters.

About an hour and a half later, Yamamoto Ryota returned to Longchai.

"Mr. Yamamoto, you have been gone for a long time!" Long Cai put down the magazine in his hand and said, "How is it? Has the Japanese headquarters agreed to our request?"

Yamamoto Ryota smiled slightly: "The headquarters rejected your request. The attitude of the headquarters is that since there is a strike by the workers and the normal production of the factory cannot be maintained, it will temporarily suspend work and resume production after the exchange rate of the Thai baht stabilizes! So Mr. Longchai, you can go back and tell the workers that from now on, the factory will be closed indefinitely!"

"What? Holiday? Don't you plan to complete the order! You don't plan to deliver to the buyer?" Longchai asked immediately.

"The order can be transferred, it can't be done here, there are other places to do it!" Ryota Yamamoto replied.

"Other places? Hehe, Mr. Yamamoto, you don't have to use this clumsy negotiation method at all! Don't I know that there are factories in Bangkok that can produce microwave ovens? To tell you the truth, other factories are also preparing to strike!" Long Guess said confidently.

"Who said that only your factory in Thailand can produce microwave ovens?" Yamamoto Ryo curled his lips in disdain, and continued: "The headquarters has contacted a Chinese company, and they will take over the production capacity here!"

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