Research On The Motivation Of China's Direct Investment On Laos

Based on the theory of FDI,this paper analyzes the causes of Chinese enterprises' direct investment in Laos.The reasons for the direct investment of Chinese enterprises in hydropower industry,mining industry and service industry.In order to study the reasons for the direct investment of Chinese enterprises in Laos,the assay first analyzes the direct investment of Chinese enterprises in Laos,and some environmental factors.Then,by comparing the different types of direct investment in Laos,the author investigates the direct investment of Chinese enterprises in Laos.Then,from the perspective of political and economic factors,the purpose of Chinese enterprises' direct investment is investigated.It also studies the influence of Chinese enterprises' direct investment in Laos.This paper uses Qualitative analysis method and quantitative analysis method.The quantitative analysis is to compare the direct investment between China and other countries in Laos and the provisions of direct investment in Laos.Qualitative analysis is to describe the political and economic relations between Laos and China to make up for the lack of quantitative analysis.In this paper,through the study of China's direct investment in Laos,the analysis of the existing problems in the old Chinese investment relations need to be improved,and then put forward the corresponding policies and suggestions.Laos's economic base is relatively weak,rich in resources in Laos,but the level of technology is relatively low,the lack of development,people's living standards are relatively low.Therefore,Laos has a certain dependence on imports and foreign investment.This requires Laos in the process of absorbing FDI funds,the development of their own economy,adjust the strategic policy,improve technical capacity,improve the living standards of the people of Laos.For Chinese companies,as investors,investment analysis in the case of a rational,will consider investment in economy,politics,policy environment and market environment and other aspects of the conditions,according to the actual need to invest in to make arrangements for the construction of the investment,to maximize profits,and can achieve mutual benefit and win-win between the two countries.In this paper,investment in the country's resources,market and policy seeking to seek three types of investment motivation analysis,and then draw the following conclusions:First,Laos has better resource conditions,rich natural resources and low production factors;Second,the Lao market environment is more suitable for investment,on the one hand,the political situation in Laos is more stable,on the other hand,the Lao market more dynamic;Third,Laos has a favorable policy to attract foreign investment,not only to provide a lot of support for foreign preferential policies,but also the establishment of a complete legal system.For the above reasons,Laos has gradually become the destination of Chinese enterprises' foreign direct investment.Finally,some countermeasures and suggestions are put forward to improve the future development of China's direct investment in Laos.To solve the problem is to improve the economy backwardness and balance Chinese enterprises in Laos investment structure,should cooperate with the ability of government departments,improve the efficiency of government investment management capabilities.The investment management system of the developed countries is relatively perfect,which can control the investment behavior,and it also leads to the development of the domestic economy.