Research On Investment-driven Overseas Infrastructure Development Mode

Infrastructure has always been regarded as important engine for economic growth.All major economies are facing infrastructure developing problems,huge market demand,significant investment gap and serious delayed construction,makes global infrastructure market a great potential to go.Over the past decade Chinese enterprises had received remarkable achievements in the international infrastructure business by low-factor-cost;On the other hand,also faced related problems such as laggard development mode,insufficient margin,lost of core-competitiveness and etc.Quite the contrary,their conventional western competitors had basically dominated the high end of the industry chain due to advanced technology and management level.With the arising of China labor cost as well as the long term appreciation trends of renminbi,the conventional advantage of Chinese enterprises are disappearing,the managing risks are arising,neither the market share nor the profit are shrinking,the development bottlenecks are becoming obvious.Especially recent years,overseas operation deficit had frequently occurred among Chinese enterprises.Fact shows that conventional business mode can barely support the business to grow sustainably,almost all the current engaging companies had realized the necessity of changing development mode and setting up new way for growth.This thesis starts from the nature of infrastructure industry,restoring the rules and trends of the market,and makes deep analyze by sorting out the dilemma in front of Chinese enterprises,concluded that the conventional business mode which based on project contracting could not meet the market demand,the enterprises shall rebuild alternative competitiveness by restructuring their business mode.This thesis presents an alternative development mode for the international infrastructure industry which driven by investments and highlighted the feasibility and realization conditions for the new mode.The thesis also studied on the risk identification and risk management aspects which particularly for the new development mode.Based on all above,the thesis makes suggestions for the future overseas infrastructure business.