Reborn Industrial Tycoon

Chapter 517 Industrial Transfer (please vote)

Japanese economists have proposed a flying geese theory, which actually reveals a global transfer process of manufacturing.

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

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

The development of manufacturing industry is gradual. It is impossible for a country's manufacturing industry to be mid-to-high-end from the beginning. All major manufacturing countries in the world start from the low-end.

Even the United States was producing clothes and shoes in the 1950s. At that time, shoes made in USA were sold all over the world, and even in poor Africa, textiles were made in the United States.

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 power to pass.

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

Japan has transferred low-end manufacturing and labor-intensive manufacturing to China and ASEAN. Since Thailand, Malaysia and other "Four Asian Tigers" countries are more open, the amount of investment in Southeast Asia from Japan or Western countries is

It is also much higher than China.

According to the normal development trajectory, after ASEAN countries accumulate capital and technology, they will begin industrial upgrading and move towards mid-to-high-end manufacturing.

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

After the outbreak of the Asian financial crisis, the manufacturing industries of ASEAN countries began to shift to China. Without the manufacturing industry, it will be difficult for the so-called "Four Asian Tigers" to regain their former glory.

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

profit.

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

For Southeast Asia, as long as the manufacturing industry is still there, even if it is severely damaged by the financial crisis, it will be able to recover sooner or later.

However, 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 South Korea's large companies eventually became foreign-controlled, they still managed to maintain their manufacturing industry.

As long as the manufacturing industry is still there, there is hope for a comeback. It is these manufacturing industries that finally allowed South Korea to cross the threshold of developed countries. If South Korea does not maintain its manufacturing industry, it may be difficult to break out of the middle-income trap.

During the Asian financial crisis, monetary and financial looting or taking advantage of the situation to purchase assets were all means of short-term profit.

Taking away the manufacturing industry in Southeast Asia is the real long-term way to catch the big fish.

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

.

Compared with an industrial system that can provide living security for a population of 400 million, the tens of billions of dollars earned by international financial giants are really not worth mentioning.

Li Weidong is an industrialist, and he knows that manufacturing is the foundation, so when the Asian financial crisis broke out, he began to make plans to seize the manufacturing industry in Southeast Asia.

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

Soros is at best a pig. He looted a fortune in the monetary and financial fields and only ate a few ginseng fruits.

Li Weidong's grab for the manufacturing industry has directly cut off the foundation of Southeast Asia's development. He is equivalent to the Monkey King 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 from Southeast Asia is also a process of ebb and flow. You no longer have the manufacturing industry, but I have the manufacturing industry. When the time comes, I can sell products to you and make money from you.

Over time, I will become richer and richer, but you will only remain poor.

…

At the Puppy Electric Headquarters, Wang Jiuyang looked at the new soymilk machine in front of him with an expression that he couldn't put it down.

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

The current soymilk machine is not easy to stick to the pot, nor is it easy to get smeared in the pot, and it is very easy to clean. Basically, just rinse it with water and it will be clean! You no longer have to hold it together like that, you have to use a brush to brush hard!"

Li Weidong sighed helplessly. He planned to train Wang Jiuyang to become the CEO of Puppy Electric, and would 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. He is far less concerned about other products 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 aside the soymilk machine first, let's talk about the price reduction of microwave ovens first."

"Reducing the price of microwave ovens? Are we going to start a price war again?" Wang Jiuyang asked subconsciously.

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

"500 yuan? So cheap?" Wang Jiuyang was startled, and then said: "In this case, ordinary working-class people can also afford a microwave oven!"

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

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

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

Li Weidong paused and 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 say 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. The production scale of other small household appliance industries will also be doubled!

Lower prices will inevitably stimulate market demand. As you said, ordinary working-class families can afford a microwave oven that costs 500 yuan. There are hundreds of millions of working-class families in China, which means we have hundreds of millions of them.

market.

Moreover, this market is still growing. In the future, the income of people in our country will increase, and the demand for microwave ovens will also increase. Not only in cities, but also in rural areas, such products will be needed.

This is just a microwave oven, other small household 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 leader in the industry!"

…

Most of Thailand's industries are concentrated in the capital, Bangkok.

As early as the 1960s, Thailand formulated an ambitious industrial development plan to build an industrial zone centered on Bangkok.

It is a pity that this plan did not come true. For a country full of illiterate people to industrialize, it is undoubtedly a foolish dream.

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

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.

During the Korean War, Japan, as the rear of the United States, provided various supplies to the United States, thus earning its first pot of gold. It quickly returned to its pre-World War II economic scale, and later became the second largest economy in the world.

large economy.

Thailand is also eager to copy Japan's success, so the Thai government once again issued an order proposing the establishment of industrial zones in the hope of realizing Thailand's industrialization and modernization.

However, Thailand's industrialization ideal is too wishful thinking. They do not have the industrial foundation of Japan, and Southeast Asian countries do not have the discipline of Northeast Asia. It is undoubtedly a foolish dream 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, Thailand opened a series of financial restrictions in order to attract foreign investment. Capital from Japan entered Thailand on a large scale, restarting Thailand's industrialization path.

However, Thailand lacked reasonable planning for industry at that time, so most of the investment was concentrated near the capital Bangkok. By 1997, the area around Bangkok was already overcrowded.

If you look at the development of Bangkok alone, anyone will feel that Thailand is a prosperous place, with factories rising from the ground one after another, as if a new industrial civilization is rising.

However, in the process of Thailand's rapid development, 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 focused on product assembly and processing. The upstream and downstream aspects of the industrial system were not in Thailand's hands.

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

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

In July, the day the Thai baht gave up its fixed exchange rate, it devalued by 17%. In the following half month, the baht depreciated by more than 30%.

The prices of industrial raw materials and parts imported by Thailand's manufacturing industry have increased by 30% in an instant, which is an unbearable burden for the entire Thai manufacturing industry.

…

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

Workers are on strike!

As for the reason for the strike, it is naturally to demand a wage increase.

The financial crisis brought about the depreciation of the Thai baht, causing serious inflation in Thailand. The price of various industrial products increased every day, which also caused the price of agricultural products to rise accordingly, causing prices to skyrocket throughout Thailand.

Since prices have increased, wages should also increase, so the union demanded a wage increase for workers. Subsequently, the request for a wage increase was rejected, and the workers went on strike.

In the process of Thailand's development, it did not learn many of the advantages of the West, but it learned a lot about noisy. If you look at Thailand in later generations, you will know that people took to the streets to protest when they disagreed, and Bangkok was paralyzed every three days.

Strikes such as asking for a raise in wages or improving working conditions are reasonable demands. However, it is a bit excessive to follow the example of Northern Europe and hold a weather strike.

In the Nordic countries, children of landlords have enough food at home, and they can live without doing anything in their lives and still have enough food and clothing. So when people have enough to eat and have nothing to do, they can find an excuse to go on strike and take a couple of days off.

But Thailand is not as wealthy as the Nordic countries, so why is it holding a climate strike because it thinks it will starve to death?

Even though Ryota Yamamoto, a Japanese executive, has been traveling to Thailand for five years, he still can't understand the Thai people's behavior of going on strike every three days.

Japan implements a lifelong employment system. Workers will increase their wages or receive promotions as their seniority increases. Although this system does not reflect distribution according to work, it is fair to everyone. Therefore, few people in Japanese companies go on strike.

.

On the contrary, when the company encounters difficulties, the workers will advance and retreat together with the company, and even help the company tide over the difficulties without any salary.

Strikes in Japan are often industrial strikes, such as strikes in the railway industry and strikes in the medical industry. The strikes target the entire industry rather than a specific company.

Although Ryota Yamamoto didn't understand the Thai strike, he still had to deal with the workers' strike, so he called Longchai, the leader of the trade union organization, and started negotiations.

Longchai, the leader of the union, looked arrogant and said: "Mr. Yamamoto, prices in Bangkok have increased by 30% in the past month, and our current wages cannot make ends meet!

Therefore, our union demands that starting from next month, our salary will also be increased by 30%. In the next year, we will increase our salary by 3% every month to cope with the increase in Bangkok grain prices!"

After hearing this request, Ryota Yamamoto shook his head: "Mr. Ryuchai, you have to know that rising prices will not only put you under pressure, but we, the employer, also have cost pressures.

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

Got it!

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

"

"Stop scaring people by closing the factory!" Long Chai curled his lips and continued: "If you can't meet the union's demand for a wage increase, we won't start work!"

Yamamoto Ryota narrowed his eyes in anger: "Mr. Ryuchai, why can't you see clearly the current economic situation! If the factory continues to produce, even if there is a slight loss, the Japanese headquarters may allow it to continue operating here.

If you don't start work and continue to consume like this, then the value of this factory will be lost, and the Japanese headquarters will really shut down the factory. Then you will have no jobs."

"We can't starve to death without jobs! But this factory has to complete orders for tens of thousands of microwave ovens every month, right? If we don't start work, let's see what you do to deliver the orders!" Long Chai threatened.

Yamamoto Ryouta frowned fiercely. As Ryuugai 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, Ryota Yamamoto finally said, "Well, regarding your appeal, I need to ask the Japanese headquarters for instructions before I can give you an answer!"

"Okay, I'll just wait here for you to ask your superiors for instructions!" Long Cai leaned on the sofa, crossed his legs, took out a magazine from his pocket, and started to read it. It was obvious that he had prepared a long-term plan.

Preparation for battle.

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

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

"Mr. Yamamoto, you have been gone for a long time!" Long Chai 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 headquarters' attitude is that since there is a workers' strike and the factory cannot maintain normal production, it will temporarily suspend production and resume production after the Thai baht exchange rate stabilizes!

So Mr. Longchai, you can go back and tell the workers that from now on, the factory will be on holiday indefinitely!"

"What? A holiday? Don't you plan to complete the order? Don't you plan to deliver the goods to the buyer?" Long Cai asked immediately.

"Orders can be transferred. We can't do it here. There are other places where we can do it!" Ryota Yamamoto replied.

"Other places? Haha, Mr. Yamamoto, you don't have to use this clumsy negotiation method! Don't I know 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?" Ryota Yamamoto curled his lips disdainfully, and then said: "The headquarters has contacted a Chinese company, and they will take over all the production capacity here!"

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