Guangzhou Longyue Environmental Protection Machinery Equipment
Contact: Luo Manager
Address: No. 46, Hongmian Avenue, Huadu District, Guangzhou
Along with the promotion of the “One Belt and One Road” initiative, the environmental protection field has increasingly been subject to numerous investments and concerns, becoming a key area for enterprises to participate in international infrastructure construction in the future. Some Chinese environmental protection companies have gone out to participate in foreign investment projects.
"Based on the sustained growth of China's national strength and the financial crisis, the entire world economy has undergone tremendous changes. The vitality and excess capacity of Chinese companies need to be tapped in emerging markets."
Environmental protection companies actively "go to sea" optimistic about foreign markets
The reason for going abroad to invest on the one hand is that domestic competition is too intense. Although overseas markets have language barriers and unfamiliar circumstances, many private companies and central enterprises are willing to explore the future. On the other hand, along with the National Belt and Road Initiative, going global is not only a market activity but also a manifestation of the country’s strategic policy for serving the country. Its profound significance is very important.
There are many places worth studying abroad. Why did Chinese environmental protection companies go to Europe to buy and buy? Ke Yan emphasized German culture in particular. Beijing Enterprises spent EUR 1,438 million to acquire German companies specialized in waste incineration. It was precisely because of the German craftsman spirit and careful management. Secondly, Beikong also introduced German doubles. Yuan system of education.
Many people worry about foreign investment risks, but foreign investment opportunities and risks coexist. Different countries and regions also have different situations. It is not necessarily that the risk of foreign investment is necessarily greater than the risk of domestic investment.
Yunnan Water has achieved an operating scale of 2.48 billion from the current 1.22 billion in 2011, and overseas projects have covered many countries. At the time of “going out” in the same year, it first laid out the market in Southeast Asia, mainly based on the geographical advantages of Yunnan's radiation center for Southeast Asia. Southeast Asian countries and China, especially Yunnan, are close to each other, not far from each other, and have a large population and can develop environmental protection projects. Also a lot.
When we learned that Thailand's wastewater treatment rate was relatively low, there were about 3 million tons of sewage in Bangkok in 2013, and only about 900,000 tons were treated. Yunnan Water sees broad market prospects and gradually intervenes. Since 2013, it has started cooperation with Thailand's local environmental protection projects, and has conducted market arrangements in Singapore, Indonesia, Malaysia, and other Southeast Asian countries, and will further seize it in the future. The "One Belt and One Road" strategy has been implemented to continue to open up the global market.
China’s overall national strength has been continuously enhanced, and its international status and influence are no longer comparable. At present, the governments and political parties of Southeast Asian countries are generally friendly toward China and have a very good cooperation with China. They are actively responding to the "One Belt and One Road" strategy. Environmental protection projects such as water supply, sewage treatment, and solid waste disposal not only benefit the local people, but also have a certain degree of national foreign strategic significance.
The issues of air, oceans, and the unfair distribution of desertification, land, and water resources in ASEAN are very serious. Sustainable development is also the mainstream of the international environmental situation. Each government has paid special attention to environmental issues. Some Central Asian countries have strong environmental concepts, their acceptance of environmental issues, their degree of concern, and their urgency for change. They have long embraced it. The concept of green economy has vast investment opportunities in ASEAN and Central Asia.
The government "bridges" to help environmental protection companies "go out"
The "Guidance Opinions on Promoting the Construction of the Green Belt and Road Initiative" and the "One Belt and One Road Ecological Environment Protection Cooperation Plan" tell us the direction and objectives of the Green Belt and Road Initiative.
First, President Xi proposed to build a Belt and Road One Eco-environmental Big Data Sharing Service Platform at the Summit Forum to achieve eco-environmental information sharing and promote the cooperation of eco-friendly products and technologies on this platform. Second, the establishment of the “One Belt One Road” Green Development Alliance provides an interactive platform for companies to promote the greening of the Belt and Road.
The China-ASEAN Environmental Protection Cooperation Center, as a platform for South-South environmental cooperation, has established a capacity-building training class to carry out environmental protection technical training to help local countries improve their environmental management capabilities. At the same time, it has also built a cooperation demonstration base and established the One Belt One Road Technology Transfer Center to build a bridge between China's environmental protection enterprises and foreign governments to help environmental protection companies go out.
"Going out" to find the right time to select the area "cluster" or the best choice
The environmental protection industry faces various risks in going out, including geopolitical risks, local policies, legal risks and financing risks.
“Need to understand the local laws and regulations and attach importance to the timing of overseas investment opportunities.” Sun Minghua believes that at present, it is a solid waste hazardous waste market, competition in the water sector is already fierce, and the market is relatively saturated. Domestic proposals for the deployment of light asset projects, such as smart water, sponge city, smart meter, stormwater management, big data platform.
When China's environmental protection enterprises go out, it is best to cooperate with central enterprises and state-owned enterprises and “hug the group” to go to sea. The central enterprises have strong infrastructure construction capabilities, and they have the platform advantages and project experience of overseas markets. Environmental protection companies can use the advantages of professional technology and service levels to combine them perfectly. . The good or bad going out can not be generalized, but depends on the region and the country. For developed countries such as Singapore and Israel that lack technology and funds, it is appropriate to promote the research and development of smart water and energy-saving water technologies to help the government further improve its water-related fine management. Relatively developed countries that have funds but do not have R&D technology should pay attention, such as Saudi Arabia, UAE, and Qatar, which can give priority to industrial wastewater treatment, wastewater reuse, and desalination.
Most countries in Southeast Asia, South Asia, Central Asia, and Central and Eastern Europe along the Belt and Road should be the focus of China’s investment. They have a large market and politically stable relations with China. Most of them are in the rising period of economic development. The demand for environmental protection infrastructure has grown rapidly. The funding and technology gaps are large. On the other hand, its economic development also creates a certain profitable space and growth potential for companies, and therefore Chinese companies will face many investment opportunities in these countries.
For countries such as Iraq and Africa, which are underdeveloped and politically unstable, they still have to do commonweal-based work and earn money to help. Over the years, Suez has also provided a lot of support for the clean water supply in Laos, Cambodia, Myanmar, and other countries through public welfare organizations such as Aquassistance.
When going abroad to do projects, it is necessary to increase the correlation between PPP projects and the front-end and back-end consulting efforts, and advocate the "people-oriented" concept. We should do a solid overall planning, break the island of information, and make a PPP consultation to achieve real financial sustainability. Otherwise, it is easy to become an act of passing.
In countries where laws and regulations are stable and mature, Chinese enterprises’ investment and operation rights will be more secure. Problems encountered can be resolved by local legal channels. Investment projects can be negotiated for the implementation of Chinese standards in the red line of project land.