Outlook brightens for small Delta exporters

Pakistani businessman Hroon (L) talks with Chinese businessman Li Huaqian at the Small Commodity City of China in Yiwu, East China's Zhejiang province, Sept 23, 2014. Xinhua

Business will continue to improve for small and medium-sized exporters in the Pearl River Delta in the months ahead on the strength of increased seasonal demand from overseas buyers, an industry report said on Tuesday.

Export orders for Delta companies increased "significantly" in September, according to Shenzhen Onetouch Business Service Co, a subsidiary of Alibaba Group Holding Ltd. The report was based on a survey of 2,000 exporters.

As a result, exporters' confidence improved, with the trade climate index reaching 105.42, the highest level this year.

"The index was based on increased overseas orders, a smaller impact from fluctuating currency rates and improved profitability," said Xiao Feng, deputy general manager of Shenzhen Onetouch.

Increased orders meant that companies had to spend more to turn out their goods, and labor and production costs rose 9.85 percent and 0.26, respectively, in September, the report said.

"As the external market continued to improve due to the approaching Christmas holiday, which is usually a peak time for orders, business for Chinese exporters in the Delta region will continue to improve in the months ahead," said Xiao.

The nation's exports surged 15.3 percent year-on-year in September, the highest in the past 19 months, according to customs data.

"The nation's overall trade growth, especially since August, sends a positive signal for Chinese exporters as external demand for Chinese goods has steadily recovered," said Xiao.

Trade conditions were grim in the first half of the year, with total national trade decreasing 0.9 percent to 12.4 trillion yuan ($2.02 trillion), according to the General Administration of Customs. During that period, Pearl River Delta exporters' confidence fell, according to Shenzhen Onetouch.

Government trade-boosting incentives proved effective, according to Xiao. "Particularly, new business models such as cross-border e-commerce and comprehensive foreign trade services have helped exporters gain more orders and increase trade efficiency," Xiao said.

Exporters in the Delta region took steps of their own to boost business.

Chen Yiting, deputy sales general manager of Eagle Company Ltd, a kitchen-knife manufacturer in Yangjiang, Guangdong province, said the company's diversified products were able to meet demand in different markets.

"We started to produce different varieties of knives in the first half of the year, and they were in demand," said Chen.

According to Chen, sales will remain stable this year as the company has developed regular customers from the United States and Europe.

"Business recovered a lot since July. We are also making efforts to develop more clients in the emerging markets and start developing sales channels in the domestic market," Chen said.