Study On The Foreign Financing And Investment Of Forestry Enterprise In Northeast Stated-owned Forest Areas

With the rapid development of economic globalization and severe competition on resources between international and domestic markets,it turns to be a must for the forestry enterprises of state-owned forest region to seek for further development opportunities and supports internationally.Therefore,it is necessary and urgent to find out solutions on finding new foreign investment and financing channels,conducting the foreign investment and financing program by using market mechanism,creating positive environment for foreign investment and financing activities,attracting more social and financial capitals investing on forestry enterprises and establishing multi-channel of investment and financing for forestry enterprises of state-owned forest regions.In the time of Planned Economic System,forestry enterprises of state-owned forest region in Northeast of China had produced plenty of timbers and forest products to meet the requirement of constructing national economy and for life necessities.While the management and construction concept of these enterprises were chronically focusing on producing timbers in a way of emphasizing Low Input High Output and pursuing blindly for higher production index which cause the forest resources decreased sharply,and cause the enterprise run into difficulties in operation due to lack of capital for business development at the current stage. Capital problem at these enterprises is now a big concern.With the facts that China joining WTO and the competition on international markets are fierce,the problem that management of state-owned forestry enterprises is not in tune with development of market economy becomes outstanding.These enterprises are lack of competition and profitability,and contribute less to the society as well.Therefore,establishment of a new market-oriented foreign investment and financing system by using foreign forest resources and international capital to develop national forest industry for these state-owned forestry enterprises come to the priority.This paper analyzes the historical and current investment and financing situation of stateowned forestry enterprises in Northeast China to disclose the existing problems these enterprise encountered on investment and financing and to discuss the possible effective ways for these enterprises to attract foreign investment and financing so as to broaden a multifinancing channel for these enterprises.The development of foreign investment and financing in these enterprises is limited by some traditional policy and management system during the progress under new situation.Furthermore,their activity of international investment and financing is of high risk due to poor management system and lower competition power.How to actively seek for possible solutions for the above mentioned problems and risks after evaluating them properly is one of the key arguments discussed here on this paper,in which investment and financing concepts and modules like PPP,BOT,TOT and ABS are introduced to describe different situations in different forestry enterprises based on the trend of international capital operation.With the analysis of reasons and risk elements on the foreign investment and financing process in the state-owned forestry enterprises,this paper focuses on study and analysis of environment evaluation and profitability appraisement for foreign investment and financing activities by connecting the academic theory with actual examples to find a new way to resolve the specific problems at individual regions,and offer proposals for these state-owned forestry enterprises on strategic planning and development module regarding foreign investment and financing.After the Empirical Analysis of state-owned forestry enterprises in Heilongjiang Province,this paper offers practical suggestions on the development of state-owned forestry enterprises aiming for improving the investment and financing system and increasing the competition power for these enterprises.Based on research and study on the above mentioned key points,the paper concludes with solution for stat-owned forestry enterprises to sustainable developed the foreign investment and financing activities through Normative Analysis and Empirical Analysis.The system frame of foreign investment and financing program in stateowned forestry enterprises has been reconstructed in this paper.These describe the main task and innovation in this paper.In conclusion,this paper is aiming for increasing the competitiveness of state-owned enterprises by using appropriate strategy and adaptable options for their foreign investment and financing activities through expanding a multi-channels,establishing a theory frame which fits the specific operational features of these enterprises and setting up a comprehensive system for attracting foreign investment and financing on the basis of research and study on the effective ways for the state-owned forestry enterprises in Northeast China.Hence the good way to promote the investment and financing ability of these enterprises is also mentioned in the paper. The research done in this paper has theoretical significance for the leap-forwarded development for state-owned forestry enterprises in Northeast China,and realistic and practical meaning as well as the historical significance to accommodate the requirement of times.