Operation And Management Problems Of China-Lao Joint Venture Enterprises

Laos is becoming more and more attractive to investors.After the reformation of the economic policy,there are almost 30 countries,which have invested in Laos with a high number of projects accounted 656 projects with 6.7 billion US dollars,mostly from Chinese entrepreneurs.In 1989,Chinese investors began to trade with and invest in cooperation in Laos with the average amount of $20 million.As a result,Laos and China have tight politic and socioeconomic relationship that enable the rapid growth of Chinese investment in Laos.Laos and China is a neighbor with similar in humanities,culture and other environment.Furthermore,China and Laos has a good relationship and the bilateral trade between China and Laos has been growing rapidly in recent years.Due to the accelerating growth of cooperation in economics and trade between the two countries,there are a lot of Chinese enterprise across the region.A huge amount of investment from Chinese investors create a huge amount of local revenue,and a lot of employment and job opportunities for the local people.This also makes the technology been greatly improved,which is conducive to the domestic economy to transfer to the international economy.Hence,the international businesses in different nations are operated within the context of varied national requirements and cultural expectations.The aim of this study is to investigate how these differences affect the management of China – Lao joint venture enterprise.This paper analyzed the internal problems that are specific to China – Laos joint venture enterprise operating in Laos.The researcher collected data from in-depth interview and materials on the operation of Enterprise X,as case study.The results show that there are significant problems that occur to be inevitable due to differences in working environment,cultures,the objectives and motives of those involved.In the last part of this study,the corresponding countermeasures and suggestions are proposed to improve the management of China – Lao joint venture enterprise and further strengthen and expansion.The main contents of this paper include:(1)Analysis on the current situation of Chinese entrepreneur investment in Laos followed by PEST and SWOT analysis on the current situation of Chinese enterprise environment analysis,also analysis on the strength,weakness,opportunity and threat of Chinese enterprise operating in Laos.(2)Research on the current situation of China-Lao joint venture enterprise management.Based on a case study,a China – Lao joint venture enterprise was selected to be investigated and analyzed in details.Some typical problems are discovered in enterprise management and the possible reasons are discussed as well.(3)Some reasonable suggestions are put forward to improve of China – Lao joint venture enterprise management.This research is helpful to promote the management and operation of China – Lao joint venture enterprise in Laos,and also help for others joint enterprises in Laos.