Abstract
The overseas economic and trade cooperation zone is an important platform for China’s economic cooperation with other countries. It aims to improve the service management level of the cooperation zone and promote the operational efficiency of the park enterprises by drawing on the excellent experience of China’s Reform and Opening. Due to the increase in domestic production costs and the guidance of the government’s policy of encouraging enterprises to “go global”, the countries along the “Belt and Road” have gradually emerged as a boom in corporate investment cooperation zones. This paper analyzes the input and output of the case of Hongdou Group investing in Cambodia’s special economic zone, Sihanoukville, and finds that this kind way of investment is conducive to enterprises to use policy support to “get advantage and complement each other”. Integrating various resources, and gaining the core competitiveness of enterprises in the host country is also the main motivation for Chinese enterprises to invest abroad in the new era. The analysis believes that the initial stage of investment will bring some financial pressure, but in the middle and late stage will play an important economic role, bring good economic benefits, and will bring positive social benefits to the host country, which will benefit for the bargaining power of enterprises overseas.
Highlights
1.1 Research background In the past ten years, the net growth rate of China's foreign direct investment has maintained a high level of volatile growth
Combining the example of Hongdou Group's investment in Westport, this article attempts to study the motivation of the company's foreign investment from the perspective of resource-based theory, and analyzes whether the investment behavior can bring advantageous resources or competitive advantages to the enterprise and whether it is in line with the development strategy; An attempt will be made to use input-output theory to analyze the economic and social benefits of investment behavior
Based on the above analysis, this article believes that the motivation of Hongdou Group's investment in the Westport Special Economic Zone is to use its existing resource advantages to develop relatively inferior resources, including lower production costs and a broad international market, and use external resource advantages to create A new concept of foreign investment-drawing on China's experience in reform and opening up and economic transformation, integrating resources and reducing transaction costs. 3.2 Benefit Analysis of Hongdou Group's
Summary
1.1 Research background In the past ten years, the net growth rate of China's foreign direct investment has maintained a high level of volatile growth. There are two main ways for Chinese enterprises to make direct foreign investment. Cross-border mergers and acquisitions and greenfield investment Enterprises rely on their own strength and experience for overseas expansion. According to data from the Ministry of Commerce, as of 2018, Chinese enterprises have invested a total of 36.63 billion U.S dollars in 113 cooperation zones in 46 countries along the “Belt and Road” and 4,663 enterprises have entered the zone. By analyzing the motivation and benefits of its foreign investment behavior, it is hoped that it can provide reference opinions for China's textile manufacturing enterprises to conduct business upgrading and transformation, select channels for foreign direct investment, and quickly integrate into the economic environment of the host country
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