Joint Venture Management Model Of Myanmar Diesel Engine Project

With the economic globalization, corresponding domestic market environment become more competitive. Under the temptation of overseas markets, manufacturing enterprises in our country rushed into overseas EPC project contracting market basing on the support of national policy. Especially after our country put forward the development strategy of "the Belt and Road Initiative" and has set up the Asian infrastructure investment bank and fund of the silk road, which provides lots of opportunities for Chinese equipment manufacturing enterprises. But they met various difficulties due to insufficiency knowledge to the international market, weak comprehensive strength, lack of actual experience and so on. So how China equipment manufacturing enterprises "going out" has become the urgent need of research topic, which is the meaning of this research.Based on the Myanmar Diesel Engine Project constructed by XJ Group, an electric power equipment manufacturing enterprise, this paper analyzes its Joint-venture cooperation mode. Firstly, this paper introduces the concept of joint-venture, evaluation index and general principle of establishing a joint-venture, choosing method and the type of joint-venture, which supplies theoretical foundation for the following concrete analysis. Then analyzes the selection basis of the above mentioned project by using SWOT analysis method, introduces the characteristics of different types of joint-venture by using the comparison method, analyses the rationality, illustrates the organization mode of joint-venture and the relationship between the members of the partner by using a chart. According to the project financing needs and the characteristics of the project joint-venture mode, the paper analyses the project financing mode. After that this paper analyzes the reasons of adopting differentiation way of bidding procurement according to the way of international procurement bidding and bidding organization form, and put forwards the main potential risks in the process of purchasing, such as quality risk, schedule risk, cost control risk and supplied preventive measures for each risk. Finally it is concluded that nowadays the "joint-venture cooperation mode" is very suitable for Chinese enterprises going out, and the establishing mode is flexible, and various modes can be even utilized in the same project. Although highlighted win-win effect, it hides a lot of risks, the parties should take corresponding preventive measures.This paper explores the rationality and feasibility of stepping into international project contracting market by utilizing "Joint Venture" mode to the domestic equipment manufacturing enterprises, whether seeking or ongoing engineering construction project in overseas contracting market. Hope can provide them some practical guidance.