The Status Quo, Problems And Solutions Of Project Contracting By Chinese Enterprises In ASEAN

After China -ASEAN Free Trade Area formed on January 1,2010, while China and ASEAN continue to strengthen cooperation in commodity trade, service trade also develops quickly---project contracting is one of the highlights. There are many benefits that Chinese corporations do the project contracting in ASEAN countries, for example, reducing the pressure of domestic employment, enhancing the level and international influence of service trade, pulling the export of materials and related equipment, which therefore promote the development of the trade between China and ASEAN countries.This paper tries to analyze the status quo of Chinese corporations doing project contracting in ASEAN countries, find the existing problems of it, and through the adoption of the practices in other countries and the analysis of typical case, make practical policies and measures to solve these problems.Through research we found that China enterprises have larger market share in Vietnam, Myanmar, Singapore in terms of project contracting, and in Indonesia, the Philippines, Thailand, Malaysia and other developing countries, the speed of project contracting is faster, and in Cambodia, Laos, Brunei and other countries has very little market share and develops slower than other ASEAN countries. The difficulties and problems of the project contracting between China and ASEAN come from three aspects:business environment in ASEAN countries, our government's support to the enterprises and the enterprises themselves. Therefore, to promote the project contracting between China and ASEAN has to be based on these three aspects, including the following measures:Chinese government should strengthen the coordination with the ASEAN countries, promote the implementation of "Agreement in Trade in Services between China and ASEAN," continue to improve the financial services, accelerate the establishment of a sound mechanism for information dissemination and sharing.Enterprises themselves must do deep market research, coordinate with reliable local groups and individuals, use various contracting methods flexibly etc., to improve their engineering contracting capacity in ASEAN countries.