The strategy of "going out" is an important measure for China to expand its opening to the outside world. Since the implementation of the "going out" strategy, Chinese enterprises stationed abroad have been growing steadily, and the pace of "going out" has been accelerating rapidly. Chinese enterprises in Thailand are an important force in the development of Sino-Thai economic and trade business. To do a good job in the guidance, coordination, management and service of Chinese-funded enterprises in Thailand is extremely important for promoting the development of Chinese-funded enterprises.
I. Development and Operating Characteristics of Chinese-funded Enterprises in Thailand
(I) Continuous development of Chinese-funded enterprises in Thailand.
In the early days of the establishment of diplomatic relations between China and Thailand, there were Sino-Thai joint companies or joint companies. After China's reform and opening up, Chinese-funded enterprises in Thailand developed rapidly, with the number increasing and the scale gradually expanding. Chinese-funded enterprises in Thailand have entered a period of rapid development. According to incomplete statistics, the number of enterprises invested and operated in Thailand has grown to 278, including 17 wholly owned enterprises, accounting for 6.12% of the total number of enterprises, 261 joint ventures, accounting for 93.88% of the total number of enterprises, and the total amount of Chinese contractual investment. 3. With the continuous development of economic and trade relations between China and Thailand, more and more Chinese enterprises are interested in carrying out economic and trade cooperation in Thailand. After years of hard work, some enterprises have gained a firm foothold in Thailand and achieved good social and economic benefits, such as Huayuan, Zhongjian, Gangwan, Huawei, Nonferrous Mining, Sinotrans, China Shipping Company and so on.
(2) The volume of import and export trade grew rapidly.
In the early days of the establishment of diplomatic relations between China and Thailand, the trade volume between the two countries was only 21 million US dollars. In 2004, it increased to 17.34 billion US dollars, and in 2005, it reached 218. In the 30 years since the establishment of diplomatic relations between China and Thailand, the bilateral trade volume has increased by more than 1,000 times. In the import and export trade, Chinese enterprises in Thailand have played an important role.
(III) Key construction projects of contracted projects have produced great social influence.
After long-term efforts, our contracted engineering enterprises have emerged in the construction market competition in Bangkok and other places, and a large number of key construction projects such as hotels, buildings, apartments, hospitals, office buildings, highways, railways, bridges, ports, wharfs, waterways, dams, water plants and housing projects have had a greater impact. In particular, key projects such as the Rama Eighth Bridge and the New Office Building of the Bangkok Municipal Government (Phase I) undertaken by China Construction Corporation, the Eighth Emperor Bridge and the Bangkok South Outer Ring Viaduct Bridge undertaken by the Harbour Company, and the "Benevolence House" undertaken by Zhongda Company and Huafeng Company have produced symbolic social influence.
(4) Strengthen the awareness of transnational operation and speed up the process of localization of management.
Transnational operation is one of the important development strategies of transnational corporations. Strengthening the consciousness of transnational management and speeding up the process of localization of management are important measures for the successful operation of transnational corporations. Over the past few years, Huayuan Group has attached great importance to transnational operation, constantly strengthened managers'awareness of transnational operation, and required managers to think and solve problems from the perspective of transnational operation. At the same time, Huayuan Group also pays special attention to the localization of management, constantly explores effective methods and measures to promote localization, makes full use of the advantages of local human resources, and timely integrates into local social culture, creates a good business environment, ensures the effective communication of enterprise management and the implementation of management measures, and further speeds up the process of localization of management.
(5) Survive with quality and compete with strength.
CSCEC (Thailand) Co., Ltd. is one of the largest Chinese-funded enterprises in Thailand's construction industry. For a long time, the company has survived by quality and participated in competition by strength, and has undertaken a large number of influential large-scale infrastructure construction projects in Bangkok and other places, which has been well received by the same industry and society in Thailand. In recent years, the turnover of the company has increased significantly: 6.46 million US dollars in 2001, 11.64 million US dollars in 2003 and 39.59 million US dollars in 2005.
(VI) Strengthen business management and improve work efficiency.
In order to strengthen the operation management and improve the work efficiency, the Bangkok Business Department of Air China Co., Ltd. has established the manager's office meeting system, compiled the Management Manual, continuously improved the operation management measures, further enhanced the production interaction ability, significantly improved the operation efficiency, and continuously increased the turnover. In 2005, the passenger transport volume was 76989 person/time, the freight transport volume was 1575.66 tons, and the turnover reached 9970.
(7) On the basis of honest service, we will continue to expand the shipping business.
China Shipping is the sixth largest liner company in the world, with more than 140 container ships, a total of more than 400,000 TEUS (20 feet equivalent), and more than 60 routes. China Shipping has won praise from customers for its rich shipping experience, advanced management level, excellent talent team and good service reputation. China Shipping (Bangkok) Co., Ltd. with the head office as the backing, relying on the Gulf of Thailand, and based on honest service, is constantly expanding its shipping business. In 2005, the total volume of import and export containers was 74876 TEUS (20 feet equivalent), an increase of 81 over 2004.
(VIII) Pay close attention to technological upgrading and transformation, and constantly expand the use of renewable resources.
Thai-China Nonferrous Metals International Co., Ltd. is a nonferrous metal renewable resources production entity. Main products: refined lead, lead-calcium alloy, lead-antimony alloy. In order to survive and develop, the company attaches great importance to the internal technological upgrading and transformation of the enterprise, transforming the design scale with an annual production capacity of only 8000 tons at the initial stage of the establishment into a production scale with an annual production capacity of 20000 tons with advanced production technology and technology, so that the enterprise can turn losses into profits and embark on the road of sound development. At present, the company has a good reputation and has become the only enterprise in Thailand's secondary lead industry that can produce refined lead and lead-calcium alloy.
In recent years, the Thai government has put forward higher environmental protection standards for secondary lead production. According to the national conditions of Thailand, the company has formulated a new technological transformation plan around the re-upgrading of technology. After the completion of this technical transformation scheme, it is more in line with the requirements of environmental protection. In order to achieve the goal of high-standard environmental protection requirements and harmonious development, the company will continue to implement technological upgrading and transformation, further improve the production environment, expand production scale and product market share, strive to create good economic benefits, and make greater contributions to Sino-Thai economic and technological cooperation.
(9) Operate according to law and pay taxes according to law.
According to the requirements of the Notice on Conducting Business Activities in Thailand in Accordance with the Law issued by the Economic and Commercial Counsellor's Office of the Embassy in Thailand, Thai-China Fragrance Industry Co., Ltd. insists on submitting a Report on Conducting Business Activities in Thailand in Accordance with the Law every six months. The products sold by the company in Thailand can pay the value-added sales tax on time according to the requirements of the Thai government. All exported products and imported raw materials have been inspected by the Thai Customs and handled with customs duties and other formalities. According to the company's profitability in 2005, the company has paid more than 3.2 million baht of business income tax to the Thai government in accordance with the law. The company operates in accordance with the laws of the Thai government from registration, plant construction, declaration of equipment use to employment, production and sales, and there is no illegal operation. On August 2, 1999, Princess Shi Lin Tong inspected the production and operation of the factory and gave her affirmation and encouragement.
II. Work of the Chamber of Commerce for Chinese Enterprises in Thailand
Since its establishment on July 28, 2001, the Chamber of Commerce for Chinese Enterprises in Thailand has carried out a series of lively and effective activities around the purpose of the Chamber of Commerce. The main activities are as follows:
(1) Members of the organization participated in important diplomatic activities such as welcoming General Secretary Hu Jintao, Premier Wen Jiabao, and Vice Premier Wu Yi's visit to Thailand and welcoming and seeing off our naval fleet to Thailand;
(2) Focusing on the hot issues of various periods, special lectures were held on "China's accession to the WTO", "Thailand's current economic situation and investment policy", "Thailand's economic situation outlook, Thai baht value trend and future investment trends and opportunities in Thailand", "Thailand's legal knowledge", "Thailand's market economy". Held symposiums on the themes of "Thai-Chinese Business Opposing Taiwan's Referendum Legislation", "Banking and Financial Business", "Thai BOI Investment Policy", "Issues Related to Chinese Enterprises'Business Activities in Thailand", "Problems Encountered by Chinese Enterprises' Investment in Thailand", "Chamber of Commerce and Thai BOI Related Business";
(III) Donated equipment and cash with a total amount of 74.25 million baht to the tsunami-stricken areas in Thailand, reflecting the deep friendship of "China and Thailand are one family";
(IV) Published the Practical Laws on Investment and Operation in Thailand, the Register of Members of the Chamber of Commerce of Chinese Enterprises in Thailand, and the Handbook of Sino-Thai Economic and Trade;
(5) Every year, the Chamber of Commerce publishes a special issue to celebrate the National Day in Chinese, English and Thai newspapers and magazines. In May 2004, he published two statements in Chinese newspapers, firmly supporting the Chinese government's "May 17" statement and refuting Chen Shui-bian's "May 17" statement, and participated in the photo exhibition "Opposing Cults and Safeguarding Human Rights" held by the Embassy at the Munna Branch of Yisancang University. In 2005, the website of the Chamber of Commerce was officially opened. The website address is: WWW. CHINESE-THAI.
III. Existing problems
(1) Language barriers.
Thai is the official first language of Thailand, and some enterprise expatriates are not familiar with the Thai language, so it is very inconvenient to work. For example, most of the bidding documents in Thailand are in Thai, and there are language barriers in the bidding work.
(2) Modern enterprise management and financial knowledge need to be improved.
The ability of modern enterprise management and financial operation is the level condition that every modern enterprise manager must possess. However, most of the enterprise managers I sent abroad are busy with their work and have no chance to participate in training and improvement, which has a great impact on the modern management of enterprises and the formulation of development strategies.
(3) Investment environment.
In terms of investment environment, there are still policy constraints and environmental constraints. In terms of policy constraints, for example, the construction industry belongs to the industry that Thailand restricts foreign companies to operate. Foreign companies can only contract public facilities construction projects with a minimum investment capital of more than 500 million Thai yuan invested by foreigners, and are not allowed to participate in the construction of various projects within the budget of the Thai government. Therefore, I have greater restrictions on contracting construction projects. In terms of environmental constraints, for example, the railway project in Thailand has difficulties such as long project cycle and many operational links. In addition, in Thailand's construction contracting market, local companies have strong strength and monopolize the contracting market.
(4) Issues concerning contracted projects.
With the rise of the economic index, the Thai market has launched some major projects one after another, but on the whole, there are still too many monks and too few porridge, and the competition is very fierce. It is mainly manifested in the competition for relations and strength. Thailand's policy of protecting local companies is relatively perfect, and the entry point of foreign companies is mainly in projects with high technology content, which local companies can not complete alone. At the same time, in the fierce market competition, it also shows that our enterprise itself is small in scale and weak in strength.
(5) Financing and exchange rate issues.
According to the Thai market, the company needs to develop locally. Some of the Chinese-funded enterprises in Thailand have small investment and insufficient liquidity.Because of the small amount of investment and fixed assets, it is difficult to finance in local banks. In addition, Thailand has many sources of funds for export credit projects, and Japan and Germany are willing to give 0. Therefore, financing is limited. The Thai currency has a floating exchange rate against major international currencies, and the strength of the US dollar exchange rate directly affects the exchange rate of the Thai currency, often resulting in uncertain profits and losses in each transaction, which is difficult to grasp.
IV. Countermeasures and Suggestions for the Development of Chinese-funded Enterprises in Thailand
In view of the actual situation of Thailand's import and export trade, processing trade of industrial and agricultural products, service trade market and contracting market, many Chinese-funded enterprises have adopted corresponding countermeasures and measures to continuously develop and strengthen their strength. And good results have been achieved. According to the survey, in order to promote the continuous development of Chinese-funded enterprises in Thailand, the following countermeasures and suggestions are put forward:
(1) Strengthen the concept of transnational operation and enhance the awareness of development strategy.
1. Observe and think strategically. At present, the trend of economic globalization and regional economic integration is irreversible. Under such circumstances, the relevant departments of the Chinese government have formulated a series of policies and measures in the establishment of overseas enterprises, the management of overseas investment, overseas processing and assembly, foreign contracted projects, and foreign labor cooperation, which have given great policy support to the development of overseas enterprises. Chinese-funded enterprises in Thailand are located in the environment of regional economic integration of China-ASEAN Free Trade Area. The managers of each enterprise should observe, analyze and think about problems from the perspective of the development strategy of regional economic integration, constantly strengthen the concept of transnational management, enhance the awareness of development strategy, and strive to remain invincible in the strong competition. Only in this way can we seek survival and development.
2. Enterprises should implement the brand strategy, adhere to the development path of combining "invigorating trade through science and technology" with "winning by quality", give full play to the existing brand effect, and strive to create high-tech enterprises. In terms of financing channels, the first is to continue to strive for more capital or credit support from the domestic headquarters; the second is to actively negotiate with banks to lock in the exchange rate for each transaction as much as possible; the third is to actively seek multi-channel low-interest loans; the fourth is to organize enterprises to establish long-term convenient cooperative relations with strong banks led by the Chamber of Commerce of Chinese Enterprises in Thailand, and to request banks to give preferential financing policies.
(2) Strengthen the training of personnel of enterprises stationed abroad and improve the level of modern management of enterprises.
1. Intensive training on Thai language for personnel of enterprises stationed in Thailand. In order to facilitate work and improve work efficiency, it is suggested that the personnel sent to Thailand by domestic enterprises in the future should be selected through the following channels: First, select talents from graduates of Thai majors in colleges and universities, and send them to Thailand after special training in relevant industries; The second is to select professional talents from enterprises to colleges and universities with Thai majors for key training, and then send them to Thailand. In order to develop, enterprises must pay great attention to the training of talents.
2. Conduct training on modern enterprise management and financial operation knowledge. Most of the enterprise managers I sent abroad are busy with their work and have not had the opportunity to participate in training for many years, which is very unfavorable for enterprises to carry out modern management and formulate development strategies. The key to the development of a modern enterprise lies in whether the decision-making of modern enterprise managers is correct and whether the management measures are appropriate. Therefore, it is necessary to train enterprise managers who have been stationed abroad for many years to update their knowledge. It is suggested that the headquarters of domestic enterprises should timely train the heads of enterprises stationed in Thailand in modern enterprise management and financial operation knowledge.
(III) Strengthen the research and application of Thai laws and regulations.
In-depth study and effective use of relevant Thai laws and regulations to promote the development of enterprises and protect their own interests is essential. The Board of Investment Promotion (BOI) is the authority in charge of investment promotion and management in Thailand. In order to maintain the fiscal and financial status of the Thai government and adapt to the development of the economic and investment situation, the Thai Investment Promotion Committee has issued a series of announcements on investment promotion. These announcements are very beneficial to the promotion of enterprise investment and development. It is suggested that Chinese-funded enterprises in Thailand should strengthen their contacts and exchanges with the Thai Investment Promotion Commission while studying Thai laws and regulations in depth, and make good use of relevant preferential policies in accordance with their respective realities.
(4) Improve the scientific and technological content of construction projects, and coordinate the negotiation and bidding of construction projects.
As the investment environment is restricted by policy factors and environmental factors, I am greatly limited in contracting construction projects. In order to enhance the strength of our construction contracting enterprises in Thailand, it is suggested that all construction contracting enterprises should attach great importance to and continuously improve the scientific and technological content of construction projects, actively adopt advanced construction technology and advanced construction technology, pay close attention to project quality, strengthen construction site management, avoid the occurrence of project quality accidents, and ensure the safe production of enterprises. It is suggested that the Chamber of Commerce of Chinese-funded Enterprises in Thailand coordinate and organize construction contracting enterprises to jointly study the issues of participation, bidding and subcontracting. In this way, we can improve the winning rate, avoid the high service fees charged by middlemen and avoid the phenomenon of "internal friction" among the same industry.
(5) China and Thailand are rich in agricultural product resources, and there is great potential for the development of fine processing of agricultural products. With the acceleration of China's industrial restructuring and the further implementation of the Agreement on Accelerating the Cancellation of Tariffs under the "Early Harvest" Program of the Framework Agreement on Comprehensive Economic Cooperation between China and ASEAN, it is suggested that Chinese-funded enterprises in the industrial sector should increase their investigation and research on the processing market of agricultural products between China and Thailand, and select large market demand. This will get twice the result with half the effort.
(VI) Strengthen the work of the Chamber of Commerce and promote the development of Chinese-funded enterprises in Thailand.
The first, second and third councils of the Chamber of Commerce for Chinese-funded Enterprises in Thailand have done a lot of fruitful work in order to promote exchanges among Chinese-funded enterprises in Thailand, promote business development of enterprises, safeguard the legitimate rights and interests of members, and promote the development of economic and trade cooperation between China and Thailand. In the future, in order to make the work of the Chamber of Commerce more impressive, it is suggested that the Council of the Chamber of Commerce further standardize and coordinate the operation order of Chinese-funded enterprises in Thailand, strengthen cooperation and exchanges among enterprises, continue to hold various types of special lectures and industry training courses, constantly update knowledge and improve management level. At the same time, we should run the Chamber of Commerce website well, provide members with a good online publicity and business platform, effectively promote the continuous development of Chinese-funded enterprises in Thailand, and make the Chamber of Commerce more cohesive and combat effective.
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