With the deepening of global economic integration, China's comprehensive national strength is constantly improving. While the state encourages international engineering cooperation, China's foreign engineering business has developed rapidly, its scale has been expanding day by day, and its international competitiveness has been significantly improved. According to the statistics of the Ministry of Commerce, from June 5438+0 to June 5438+0 1 in 2007, the turnover of China's foreign contracted projects was US$ 33.2 billion, up by 34.6% year-on-year, and the newly signed contracts were US$ 62.2 billion, up by 13% year-on-year, and it is expected to exceed US$ 70 billion in the whole year. In other words, in 2006, China successively signed billions of international projects, which made the amount of new contracts signed in that year increase abnormally. In 2007, China's foreign contracted projects still maintained a rapid growth rate, which also marked that China's foreign contracted projects entered a period of steady and rapid development. With the rapid expansion of the overall business and scale, the scale and grade of China's foreign contracted projects are also constantly improving, which is the overall development trend.

Development prospect of foreign contracted engineering market

The overall development trend of foreign contracted engineering market is that opportunities outweigh challenges, and the market potential is great, but there are also many problems. The rapid development of foreign contracted projects in China in recent years is undoubtedly inseparable from two factors. First, the state pays more and more attention to the development of foreign projects, the support policies and related measures are constantly improved, and the financial, financial and diplomatic support is constantly increasing. The second factor is the rapid development of the international project contracting market itself, which provides a rare development opportunity for China enterprises to vigorously carry out international project contracting business. The next decade or so is not only an important strategic opportunity period for China's economic development, but also an important strategic opportunity period for China's international engineering contracting industry. At present, our government is signing cooperation framework agreements on infrastructure construction and a package of economic cooperation agreements with some foreign governments. At the same time, our government is also making five-year infrastructure plans with neighboring countries and other countries, so the international market has great potential, which also provides good development opportunities for Chinese enterprises.

From the perspective of the global market, the process of economic globalization and regional economic integration has been further accelerated, the economic ties between countries and regions in the world have become closer and closer, and the industrial transfer and division of labor have been continuously strengthened, effectively stimulating the demand for infrastructure construction in various countries. After nearly 25 years of stagnation, developed countries have a new trend of rebuilding and expanding subways and generating electricity, while emerging countries that benefit from globalization and rising energy prices have risen one after another. The proportion of these emerging countries in global GDP rose from 39.7% in 1990 to 48% in 2006, and their status was significantly improved. Emerging countries invest more in infrastructure, with an annual growth rate of around 20%, while the United States only has 5%-6%. According to analysis, the investment in infrastructure construction in emerging countries is about 1 trillion dollars, and that in developed countries is about 500 billion dollars. Because the construction of large-scale infrastructure such as roads, ports and airports usually takes 15 to 20 years, it is foreseeable that in the future, this is our analysis based on the information released by some authoritative organizations in the world. From the perspective of regional distribution and development, Asian and African markets are still our main markets and traditional markets. These countries are experiencing extraordinary development, and the scale of the construction market is constantly expanding, far higher than the average growth level of the world economy. Whether it is the BRIC countries-Brazil, Russian Federation, Indian and China, or the five countries-Vietnam, Indonesia, South Africa, Turkey and Argentina, the relevant economies are growing strongly.

Overall development characteristics of foreign contracted projects in China

First, the scale continues to expand.

In the past five years, China's international engineering contracting business volume is equivalent to the sum of the previous 20 years. Judging from the development speed, the overall scale is growing at a rate of 30% every year, the speed is accelerating, and the grade is constantly improving. In the past, most of the projects we contracted overseas were low-end projects focusing on construction and civil engineering, which meant that foreign companies were unwilling to do it. We contracted difficult projects in China Company and earned hard money. Now engaged in the business of contracting overseas projects, the grade has been greatly improved. One of them reflects the strong technical strength of China Company, and the management level of enterprises in China and other aspects has also been greatly improved. In the past, we contracted. Now hundreds of millions of projects are not surprising in the whole business statistics. From the perspective of development, we used to have a single construction. Now, in addition to building construction and road traffic, it has developed into petrochemical industry, industrial production, power engineering, mine construction, electronic communication, environmental protection, aerospace, nuclear energy, medical and health care, consulting services and other fields. In the process of our development, the scale is expanding, the speed is accelerating and the grade is improving.

Second, the way of project contracting is undergoing major changes.

Chinese enterprises gradually realize that contracting with capital and obtaining construction projects through investment are the main modes of contracting international projects at present, so they actively explore the combination of engineering and investment, and promote the high-end development of foreign engineering contracting business through cooperation with overseas, real estate development and resource cooperation development. More and more China enterprises pay more attention to planning, exploration, design, consulting and other fields, and further expand their foreign project contracting business by developing high-end business. According to preliminary statistics, at present, general contracting projects have accounted for 52.6% of the total number of foreign bidding projects in China, and more than half of the projects are carried out by enterprises in the form of general contracting, especially the substantial increase in general contracting projects, which has greatly promoted the export of domestic equipment in China. BOT and other financing projects have begun to achieve certain results. In the past two years, China's foreign contracted project management enterprises have started to enter the high-end business field of foreign contracted projects by combining the development of mineral resources with the development and construction of residential quarters, and have achieved certain results. For example, the Dagang Power Station in Indonesia is a startup project of China National Chemical Corporation. After Dagang power station project entered the operation stage, the benefits were very good. More and more enterprises see that high-end projects and high-end markets can bring huge profits to enterprises, and everyone is actively exploring.

Third, the global market is expanding.

At present, the development of China's foreign contracted engineering business has spread all over the world in nearly 200 countries and regions. In other words, it has spread all over the world, even in some countries without diplomatic relations. In addition to the traditional markets such as Asia and Africa, which still maintain a stable dominant position (Asia and Africa account for 80% of our newly signed contracts), China's overseas contracting business has also shown a rapid growth trend in Latin America, Europe and North America, with the market developing in a more diversified direction and the market structure further optimized. With China enterprises signing large-scale projects in Africa, the number of new contracts signed in the African market has an obvious growth trend. In 2006, the African market surpassed the Asian market for the first time, and the new contracts reached 28.74 billion US dollars. New contracts signed in Latin America surpassed Europe for the first time, reaching $4.25 billion. According to preliminary statistics, the African market is still the market with the best development prospects. Judging from the characteristics of market distribution, Asian market and African market are still the main markets for China's foreign contracted engineering business. Over the years, with the convening of the China-Africa Forum and the continuous expansion of economic cooperation between China and African countries. In particular, many countries are at war all the year round. Now, after the armistice, the market demand for infrastructure construction is huge and the market potential is huge. In addition, these countries also have some oil resources, mineral resources and other resources. We have carried out economic cooperation and infrastructure construction cooperation, and the two sides are highly complementary. They have project needs and resources but lack funds and construction strength. We have the construction strength and funds, but we lack resources. In this case,

Fourth, the number of foreign contracted engineering enterprises continues to expand.

After decades of development, it has basically formed a team composed of many industries, which can compete with foreign big contractors. In 2007, 49 enterprises in China entered the ranks of the 225 largest international contractors in the world. In 2006, the turnover of foreign contracted projects of these 49 enterprises was US$ 65.438+0.629 billion, up by 66.5438+0.8% year-on-year, accounting for 54% of the total overseas turnover of foreign contracted enterprises in China. The concentration of engineering contracting industry has been further strengthened, and the competitiveness of large enterprises has been further improved. At present, the competitive advantages of enterprises in China are not only reflected in labor cost and price, but also in technology, complete sets of equipment, resource integration, project management and so on, which has been widely recognized worldwide. In particular, China enterprises have undertaken a large number of infrastructure projects in some developing countries, which have met the urgent needs of local development and people's lives, won the support of the local government and people, and also had a good impact. Since 2006, more and more countries, including the governments of developed countries, have expressed their desire to cooperate with China companies and invited China companies to participate in infrastructure construction in these countries. Therefore, our current development situation is a very good situation and a very rare development opportunity.

Introduction of several major regional markets

In Africa, the sustained high prices of oil, minerals and other energy sources have led to rapid economic development. The GDP growth rate of some African countries has reached more than 40%, which provides favorable conditions for vigorously developing infrastructure, such as Algeria, Nigeria, Equatorial Guinea, Angola and other markets. Contracted projects have developed rapidly, mainly in infrastructure fields such as roads, houses and water and electricity. For example, the Nigerian railway project with a contract value exceeding10 billion US dollars was finally won by China Turkey. Algeria's $6.7 billion highway project was also won by a joint venture between CITIC and China Railway. In Africa, the most important feature of cooperation is the economic cooperation package agreement, which is not only a resource exchange project cooperation, but also an investment model negotiated by the two governments. This kind of business in Africa has surpassed other countries.

In the Asian market, it is also experiencing a stage of rapid development, such as India, Vietnam, Pakistan, the Philippines and other countries, with huge investment in infrastructure construction. For example, in India, the annual investment in electric fields, airports and other infrastructure will reach 3.5% of GDP in the next few years. It is estimated that in the next few years, the investment in infrastructure such as transportation, urbanization, housing, roads, ports and airports will reach 500 billion US dollars, so more planning will be made in the future investment process. According to analysis, the actual growth rate of Vietnam in 2007 can reach 8%. The main problem now is that infrastructure construction is lagging behind, and the investment centered on infrastructure construction is expanding. This is the characteristic of the Vietnamese market. In order to achieve the goal of becoming a modern industrial country by 2020, more than $10 billion is invested in industrial projects and infrastructure construction every year. According to our preliminary statistics, in 2007, China enterprises' bidding projects in Asia accounted for 36% of the total bidding projects.

The Middle East market is another important regional market for international contracted projects. With the soaring oil prices, these countries are implementing active development plans. According to the forecast of the International Monetary Fund, the investment plans of the six Gulf countries will reach 700 billion US dollars from 2006 to 20 10. According to Gulf news reports, the total value of the construction projects planned by the Gulf Cooperation Council, Iran and Iraq is about 1 trillion US dollars. Among them, the United Arab Emirates accounts for one-third of the market, about 294 billion US dollars, and Kuwait and Saudi Arabia are the second and third respectively. The total value of planned construction projects is $2 1 1 billion and $21billion respectively, and the demand for construction projects in the whole region is huge. At present, in the Middle East, including countries like Iraq, many companies are paying close attention. Meanwhile, many projects have been carried out in the United Arab Emirates, Saudi Arabia and Kuwait. They signed a government framework agreement with Saudi Arabia and provided a list of business leaders engaged in infrastructure construction, covering railways, highways, housing construction, electricity, chemical industry and other fields, with great market potential.

Looking at Europe again, from the perspective of Eastern Europe, the growth rate of buildings in many countries in Eastern Europe is above 7%, and it will continue to grow in the next few years. After Poland, Hungary, Romania and other countries joined the European Union, they received a lot of financial assistance from the European Union, and their investment in infrastructure construction increased greatly. Therefore, large-scale projects urgently need to introduce new builders. With the development of Russian economy, there is a huge demand in the fields of residential construction, non-residential construction and infrastructure construction, while domestic construction enterprises are far from meeting the demand for infrastructure construction, which provides huge business opportunities for China enterprises.

In addition, in South America, Latin America, Brazil, Argentina, Chile and other countries, the demand for infrastructure construction has increased. For example, Brazil is carrying out infrastructure construction with great fanfare. Many of our companies have participated in some projects in Brazil, and some have started construction. When we visited Venezuela, the government organized a forum between Venezuelan enterprises and our China enterprises, and the desire for cooperation was very strong. Venezuela is rich in oil resources and has many projects, but it lacks builders, which is also a good opportunity for China enterprises.

Problems and challenges faced

Faced with unprecedented development opportunities, China's foreign projects have made great achievements and progress, but there are also some problems, and some outstanding problems should be highly valued.

First, the overall quality of business development is not high.

At present, the growth mode of China's foreign contracted engineering industry is still extensive, and the growth of turnover mainly depends on the increase of the number of projects, but the improvement of business quality is not obvious. Some enterprises have low management level and poor profitability, and there is a phenomenon of blindly pursuing the improvement of the number of projects and ignoring the benefits of projects. The comprehensive service ability, financing ability and financial product management ability of enterprises are not strong. According to the bidding statistics in 2007, enterprises mainly rely on cash projects with traditional funds. According to statistics, China enterprises bid for projects of international financial institutions, accounting for 12.4%, and projects financed by owners and local governments account for 65.9%. Together, they account for 78.3% of all our bidding projects, and the proportion of contracted projects with capital is relatively low, which is 65% compared with international projects. In addition, most enterprises are concentrated in the low-end and low-profit construction field in the industrial chain, and basically rely on cost and price for international competition, which is a difficult problem and a challenge in developed countries and regions. Of course, this situation is gradually changing, and the Chamber of Commerce has been promoting the development of enterprises to high-end markets and high-end businesses, but there is still a big gap in the general contracting method led by design consulting.

Second, the business order of enterprises needs to be standardized.

At present, the system of division of labor and cooperation and the system of honesty and self-discipline of international contractors in China have not yet been fully formed. With the strengthening of the overall strength of China Company, the speed of all kinds of enterprises going out is obviously accelerated. China enterprises compete in almost every market and every field in the world. Homogeneous competition, excessive competition and even vicious low-price competition are still outstanding, and the corresponding problems such as construction period and quality have also begun to appear. Due to unfair competition, national interests, industry interests and company interests have suffered serious losses. This is the problem of market operation order. Don't underestimate this problem. Therefore, our chamber of commerce strives to urge member enterprises to move from competition to common competition and cooperate with each other. Through practice, enterprises gradually realize that cooperation is more profitable than competition. For example, the Sultan Lowe Dam project with a contract value of US$ 600 million was jointly undertaken by China Hydropower Construction Company and China Hydropower Foreign Company. The two sides avoided the competition between domestic enterprises by forming a consortium and won the project at a satisfactory price. This shows the importance of cooperation. There are many such cases.

The third problem is that security cannot be ignored.

With more and more enterprises going abroad and covering more and more fields, overseas personnel and institutions are facing more and more new situations, and the overall security situation is not optimistic. At present, the security forms are complex and there are many hidden dangers, such as terrorist attacks, social security problems and conflicts with local interest groups. Apart from our own safety measures, I'm afraid the deeper problem is that China enterprises should handle all aspects well and fulfill their social responsibilities. Many of our enterprises have consciously or unconsciously clashed with local interest groups because they don't pay much attention to this issue. For example, in Gwadar, Pakistan, our company built a project there, which caused some local vested interests to suffer losses, resulting in contradictions. At present, many enterprises should pay attention to this situation when doing business, especially in Africa, where the employment rate is very low and many people can't find jobs, so the employment of local employees is a problem to be solved. At the same time, China enterprises should pay attention to the relationship with the project location. For example, some practices of China Company in Africa are very good, such as building a school, drilling a well and building a road for the local area, benefiting people nearby and getting along well, paving the way for China enterprises to successfully carry out projects in the local area.

Another reason is the need to pay attention to political and financial risks. At present, China's foreign contracted projects are mainly concentrated in developing countries such as Asia and Africa. The political and economic situation in some countries is unstable, and there are problems such as irregular management and corruption, and the industry risks are great. In addition, as the RMB may continue to appreciate against the US dollar, the project implementation will be adversely affected.

Suggestions on developing international engineering cooperation

Seize the development opportunity and further expand the business scale. At present, with the strong support of national policies and the favorable situation of a new round of rapid development of the international engineering market, China's foreign contracted engineering enterprises must seize market opportunities, seize market opportunities, continue to expand market share, and reach a new level in business scale.

Promote the transformation of growth mode and realize business upgrade. At present, the growth rate of global infrastructure investment is maintained at around 4%~5%. In 2007, the global infrastructure investment was $5 trillion. This is a huge market, but if we only do low-end construction business, the profit rate is very low, which has been widely recognized by the industry. Therefore, the majority of foreign contracted enterprises should strive to change the growth mode, further optimize the industrial structure, and extend from the low-end business chain to the high-end business chain. Powerful enterprises should vigorously promote the project general contracting business according to their own conditions, try to undertake BOT/PPP projects, improve their engineering consulting and service capabilities, and strive to participate in the early operation of the project to create favorable conditions for contracting projects.

Find your own position and realize differentiated development. Different companies determine their position in the international market according to their own actual conditions, and explore the international contracted engineering market in an all-round and multi-level way. While developing general contracting, we will vigorously develop professional subcontracting business and form a division of labor and cooperation system with reasonable structure, clear division of labor, risk sharing and mutual promotion.

Multi-faceted and multi-level training of talent teams. In the process of going abroad, we should make good preparations for talents, strengthen personnel training, and focus on cultivating their business negotiation ability, risk control ability and coordination ability.

Strengthen localized operation and improve corporate social responsibility awareness. Actively cooperate with local enterprises, improve the localization management level of our enterprises, further strengthen the awareness of social responsibility, promote enterprises to handle the relationship with local society, actively assume social responsibility in terms of safety, environmental protection and social return, and establish the concept of sustainable development.

For reference only, please learn by yourself.

I hope it helps you.