The proximity of Zhongshan to Hong Kong and Macau is an advantage to its economic development, especially on the manufacturing industries.
In the 1980s, Zhongshan had a relatively developed State-Owned Enterprises (SOE) sector that was used to stimulate Township and Village Enterprises(TVE) development in the countryside. Currently, the SOE sector is much weaker and the economy is dominated by foreign investment and TVEs, and also by various specialized manufacturing towns. Each of these towns is specialized in making a particular product. Most of the towns are so successful that they earn a reputation as a leading manufacturer in their own pillar industries. Indeed, "One Industry in One Town" has become a unique economic feature in Zhongshan.
Industries include furniture manufacture, domestic appliances, lighting products, food production, apparel, security products and electronic audio products. Currently, the city is trying to re-organize the fragmented industrialization. Meanwhile, the light and labour intensive industry characteristic of Zhongshan's economy imposes problem on shortage of land in Zhongshan.