Overseas economic and trade cooperation zones pave the way for Chinese enterprises to go to sea together

The COVID-19 epidemic is still spreading around the world, the world economy is in a deep recession, international trade and investment are contracting sharply, and the global industrial and supply chains are facing unprecedented shocks. Chinese companies face great uncertainty when they go global. Insiders pointed out that in this context, the overseas economic and trade cooperation zone may become a "safe haven" for enterprises going abroad to reduce the risk of overseas investment for these enterprises.

The preferred channel for enterprises to go to sea

All kinds of overseas economic and trade cooperation zones established by Chinese investment entities are important carriers for promoting the construction of "One Belt And One Road" and international production capacity cooperation. They are also new platforms for Chinese enterprises to go to sea together and innovate cooperation modes for foreign investors. Starting from 2006, "One Belt And One Road" initiative is raised, the foreign economic and trade cooperation zone construction fast development, the scale expands unceasingly, promote the development of our country and host country economic open inclusive, promote the international cooperation capacity between our country and related countries, accelerate the industrialization advancement of relevant countries and achieve common development, become a deepening bilateral economic and trade relations "business card".

Industry insiders pointed out that overseas economic and trade cooperation zones are usually located in places with convenient transportation, close to airports or ports, or at the junction of two or more countries, to ensure a vast hinterland of the market, such as china-Belarus Industrial Park in Belarus and Rayong Industrial park in Thailand. At the same time, the infrastructure conditions are complete, including not only the traditional infrastructure, such as water, electricity, road and gas, which can meet the basic needs of enterprises in the area, but also the new infrastructure, such as communication and Internet, which are more technical, and even the supporting facilities, such as education and medical care.

Since the OUTBREAK of COVID-19, the overseas economic and trade cooperation zone has become an effective platform for Chinese enterprises to "go out to sea together", and more and more Chinese enterprises regard it as the preferred channel to go out. By ccpit deputy minister of trade and investment promotion YuHaiYan industrial park outside China enterprise go out training and seminar on special (asean), said to help Chinese enterprises to expand foreign investment cooperation, smooth and orderly walk out, ccpit is willing to give full play to their strengths, help enterprises to understand the foreign investment policy and the environment, guard against operational risks, dissolve the investment and trade disputes, for the enterprise of foreign trade and economic cooperation platform to build more and better.

The park model is popular in ASEAN

Relying on the geographical location and cultural affinity with China, ASEAN countries have always been the hot investment destinations for Chinese enterprises to go abroad. The park model has become a "super springboard" for china-asean enterprises to invest in each other, and is also expected to become a new engine for deepening China-Asean economic and trade cooperation.

Vietnam is located in the center of Southeast Asia, with stable society, abundant labor force, stable power supply, developed shipping and convenient transportation. Longjiang Industrial Park in Vietnam, for example, is located in Sinphu County, Qianjiang Province, southwest Of Vietnam. It is close to Zhongliang Expressway and 50 kilometers away from ho Chi Minh City center, Shinsan International Airport and Saigon Port International Container Terminal. It has convenient transportation and low logistics cost. Ho Chi Minh City, on which the park is based, is a traditional port city for international cargo transportation, which is accessible to the whole world by sea. Ho Chi Minh City is also the 2-hour china-asean economic Zone air transport center.

According to the director of The Longjiang Industrial Park in Vietnam, Vietnam supports the longjiang industrial Park project in policy. One square metre of land in the Longjiang Industrial Park can be rented for only $1 for 50 years. Enterprises entering the park can enjoy the Vietnamese government's preferential policy of tax reduction and exemption for foreign investment. The equipment constituting the fixed assets of the enterprise is exempt from import duty, and the products are exempt from export duty. The import of raw materials, materials and spare parts for production is exempted from import duty for 5 years from the date when the enterprise starts production. The income tax rate during the preferential period of 15 years is 10%, including tax exemption for 4 years from the profit-making year, halved by 9 years (5%), and income tax rate after the preferential period is 28%. In terms of foreign exchange policy, foreign investors who have earned legitimate income from their direct investment activities may purchase foreign exchange and transfer money abroad within 30 days after the purchase.

Vietnam also enjoys many international trade policies, such as the Free Trade Agreement (FTA) of the South Vietnamese Union, the Trans-Pacific Partnership (TPP), the Association of Southeast Asian Nations (ASEAN), and the Asia-pacific Economic Cooperation (APEC). Enterprises in the park can enjoy relevant tariffs and reduce tariff costs. Since the establishment of the park, enterprises in the park have imported parts and semi-finished products from China and exported them to Europe and America after further processing in Vietnam, which has indeed avoided the trade barriers of Europe and America, reduced operating costs and achieved multi-win.

Song Qingrun, an associate professor at The School of Asia at Beijing Foreign Studies University, said that Chinese companies have unlimited business opportunities to invest in Southeast Asia, but they should also do a good job in relevant work. We should carefully study the industrial development policies of the target country and identify industries that encourage the introduction of foreign investment. At the same time, try to avoid competition with local counterparts, pay attention to find local enterprises to cooperate, which is convenient for investment and operation, but also achieve win-win situation.