Analysis On The Utilization Of Fdi In Shenyang Hunnan New District

The utilization of foreign direct investment has been an important strategy in the economic development process of a country or a region. It is a powerful tool for developing the productivity in one country. It is an important way to achieve the economy goal and a useful complement to the economic construction in the modern society. The utilization of foreign capital can make up the lack of capital for development and promote China's economic development rapidly. It will also improve the industrial structure, accelerate industrial upgrading; introduce advanced management experience; increase revenue, create employment opportunities; promote the development of the open economy; help establish and improve the socialist market economic system.Shenyang is the capital of Liaoning Province and the center of northeast politics, economic and culture. As the old industrial bases in Northeast China, Shenyang has its unique advantages on the one hand, and a long economic history and economic set-style on the other hand has become a heavy burden of international standards of the rapid development of Shenyang. With the acceleration of economic globalization, Shenyang must be integrated with the needs of its own development strategies, specify the main task of its own development and innovation. To overcome the economic history of the old industrial base in the negative impact on economic development, economic zone will be needed to promote economic development as a leader.Hunnan New District is a new developed zone in Shenyang with basic conditions to accommodate the new high-tech industries. The predecessor of Hunnan New District is Shenyang Economic and Technological Development Zone. Approved by the State Council, it is the State level Economy and Technological Development Zone. It has now become the largest development area in Shenyang and one of the strongest state-level economic and technological development zones with comprehensive capabilities and the overall economic power. It is the base of the new high-tech industry and modern industry, and the bridge connecting the economy between China and the world.As a leader in opening up economy in Shenyang, Hunnan New District use its own strengths to create conditions to attract multinational companies to establish R&D centers; introduce more advanced manufacturing, modern services and service outsourcing; enlarge industrial clusters; boost the economic restructuring and industrial upgrading in Shenyang City and the surrounding region's. Successful investment need large amount of human recourses, suitable environment and enough capital these three factors to support. Large population and the universities and colleges in Shenyang will offer enough talents for human recourses needs. And the investment environment advantages in Hunnan New District will be stated in Chapter 3. Therefore, the key element for the economy development lies in attracting and using foreign capital.Hunnan New District should promote the upgrading of industrial structure as a starting point to utilize foreign investment; study the inherent logical connection between foreign capital and the industrial structure upgrading to achieve the overall goal of New District Economic Development. Make better use of foreign capital in Hunnan New District is important for further updating ideas, enlivening the national economy, promoting industrial upgrading and restructuring, developing the non-public ownership economy, alleviating employment pressure, increasing revenue, improving the city's comprehensive competitiveness, revitalizing the northeast the old industrial base, leading the construction of the new Shenyang.The purpose of this-paper is through the SWOT analysis of the current situation of foreign direct investment in Shenyang Hunnan New District to raise some suggestions on improving the utilization of foreign direct investment in Hunnan New District to improve the utilization of foreign investment policy system, accelerate the pace of industrial development, attract investment, and actively explore how to better use of foreign capital and advanced experience.. The main content of this paper is as follows:Chapter one explains the relevant background definition of FDI including three points:foreign capital and foreign investment; foreign direct investment; the classification of FDI and the main forms of foreign direct investment in China. First, the scope of foreign capital and foreign investment are defined in chapter one. Then it explained the general definition of FDI and explanation by IMF and TWO respectively. Third, it states two types of FDI--inward FDI and outward FDI; three forms of FDI in China--sine-foreign joint ventures, sine-foreign cooperative enterprises, wholly foreign-owned enterprises.Chapter two in four parts describes the current situation of FDI. Firstly, it shows the global FDI environment. According to the International Monetary Fund, the World Bank and Asian Development Bank data, the worldwide foreign direct use of foreign capital, except the two decreased periods in 2000-2003 and in 2007-2009, the overall global FDI trend is upward mobility. Secondly, it focuses on the FDI development history in China then narrows the topic to FDI in Shenyang and finally introduces the core part of this paper FDI in Hunnan New District.Chapter three gives a general introduction of Hunnan New District. There are four parts in this chapter. First, it introduces the geography and history development of Hunnan New District. Second, it describes the infrastructure in Hunnan New District. Third, it states the economic development on the following aspect:total Economy, agriculture, fixed asset investment, international trade, foreign economic relations and trade, overall revenue of Hunnan New District in 2009. Fourth, it discusses the industrial development in Hunnan New District. Fourth, it introduces the infrastructure construction in Hunnan New district.Chapter four makes a SWOT analysis on FDI in Hunnan New District. First, it introduces the SWOT theory.Then it analyzes the strength, weakness, opportunities and threats of FDI utilization in Hunnan New District. Hunnan New District in the utilization of foreign capital has geography, transportation, environmental and policy advantages, but it also faces some of the threats and challenges. From the perspective of Hunnan New District:short history of economic construction, no mature mode of operation, the economic structure is imperfect, slow industrial restructuring, lack of technical and marketing efforts. From the external environment: foreign investment is unreasonable adding structure and industrial structure of regional imbalances; multinational transfer pricing to reduce tax revenue in China; the existence of environmental pollution; utilization of foreign capital is not high. Hunnan New District should fully understand its own strengths and weaknesses seeking effective methods to overcome the disadvantages and solve the problems. Hunnan strive to improve the use of foreign funds; innovative way of using foreign capital by adjusting the industries and regions for using FDI; optimize the structure of foreign capital sources; actively support qualified enterprises to "go out" and other ways to improve the efficiency of using foreign capital.Chapter Five finally gives some suggestions to improve FDI in Hunnan New District is a summary of the contents of the whole thesis. To sum up, it describes the definition of foreign direct investment, meaning and effect and the trend of global foreign direct investment, foreign direct investment in China's development, Shenyang characteristics of the FDI, the FDI Situation in Hunnan New District. The paper describes in detail the history of Hunnan New District in Shenyang, economic, industrial development and foreign direct investment environment; in-depth analysis of the use of foreign capital Shenyang Hunnan New District, strengths and opportunities, vulnerable and threatened; and made suggestions on the use of FDI in Hunnan New District advantages, disadvantages change, seize opportunities and eliminate the threat of some suggestions.I hope this paper can make a clear and comprehensive view on FDI in Hunnan New District to measure the current development level of Hunnan; make a supplementary and reference for the economic development strategy, and thus play the leading role in Shenyang; lead the industry in Shenyang City and around transformation and economic development.