Korean Shoe Manufacturers Hope To Cooperate With Chinese Footwear Enterprises

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Investment is becoming a new topic for Chinese businessmen.

One wants to make money, one wants to change money.

With the gradual opening up of North Korea's economy, China has become the first investment attraction in North Korea.

In recent days, DPRK has held a series of business activities and investment negotiations in China.

In the early morning of September 26th, Chen Jianfeng, deputy director of Beijing City International Camp integrated housing limited, came to the GBD public diplomacy Cultural Exchange Center (a large private diplomatic organization in China), composed of limited liability companies from the former Chinese diplomat Association and the Chinese Bridge margin public diplomacy culture exchange company, referred to as the public diplomacy center, and waited to participate in the upcoming North Korea investment environment introduction and Investment Fair.

For Chen Jianfeng, North Korea has unlimited business opportunities and temptations, but at the same time it is also full of risks.

In his view, North Korea's economic opening is the trend of the times, and has a market prospect than a province in the Midwest of China, though this high profit must be high risk.

In fact, entrepreneurs like Chen Jianfeng are not in the minority.

At the same day, more than 150 large and medium-sized enterprises came to consult, such as COFCO, Beijing North wire and cable, Hebei Pharmaceutical Co., Ltd., all of which showed great interest in the Korean market.

Yin Hengri, director of the foreign investment and Economic Cooperation Committee of DPRK, said that this is the first time that the DPRK has launched an investment fair in China. It hopes that through this fair, Chinese enterprises will learn more about North Korea and let the outside world know more about North Korea.

He said that North Korea will also carry out more exchanges with China's Ministry of Commerce in China this year, similar to this conference, which will also be held in October or November.

Is there any ore?

It is an open secret between China and North Korea to do business with North Korea.

Local officials do not hide the risk of investment while attracting foreign investment. At the same time, they also emphasize their "advantages", that is, low labor force and unique management environment.

But for Chinese entrepreneurs, the most attractive thing for North Korea is mining.

Beijing East mineral resources integration Co., Ltd. Mr. Chang said that North Korea's mineral resources are very rich, for China's mineral company, it is a great temptation and market, but in the choice of investment, the company will be cautious.

After all, North Korea's investment environment is not very healthy.

In September 22nd, the China overseas investment Federation (hereinafter referred to as CNOOC) signed an agreement with the DPRK investment office in Beijing to jointly launch the "DPRK special fund".

CNOOC is a non-governmental social organization in China. DPRK investment office is an overseas investment platform set up by the joint venture investment committee of the DPRK.

The joint venture investment committee of the DPRK was established under the decree of the permanent committee of the Supreme People's assembly of Korea. It is responsible for formulating preferential policies for joint ventures, expanding investment and improving investment environment.

Liu Yangao, Deputy Secretary General of China shipping, said that the fund, which was co sponsored by the mining industry as the main investment direction, was about 3 billion yuan.

The first phase of the injection is 1 billion yuan, which is funded by some domestic fund institutions and consortia.

The main investment direction is mainly mining industry, and real estate development and port operation are also within the scope of investment.

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As a matter of fact, whether it is a special investment fund for North Korea or the North Korean investment project fair, the first sentence that many companies come to the scene is whether there is a gold mine.

Public information shows that North Korea has abundant mineral resources, and more than 300 kinds of minerals have been identified, of which more than 200 kinds of useful minerals are available.

Graphite and magnesite reserves rank the highest in the world.

Iron ore and aluminum, zinc, copper, gold, silver and other non-ferrous metals and coal, limestone, mica, asbestos and other non-metallic minerals are rich in reserves, and also have oil resources. Among them, the Maoming iron mine in the Sino North Korean border area of the north of the salt mirror has proven reserves of about 5000000000 tons, and the exploitation capacity is 30 million tons.

Cui Chengjin, chief investment officer of the joint venture investment committee of North Korea, said, "warmly welcome" Chinese investors to invest in areas such as North Korea's mineral resources, urban infrastructure and so on. DPRK safeguards the rights and interests of foreign investors in accordance with their laws. As for "specific issues such as investment domain and proportion of investment, the two sides can discuss".

Jin tie Zhen, vice chairman of the joint venture investment committee of North Korea, said that the DPRK also signed cooperation projects with investors from Egypt, Russia and other countries in addition to cooperation with China in Economic Zone Development and crude oil joint survey with the government.

He said that North Korea particularly welcomed and supported foreign investors to invest in their domestic infrastructure construction, which could enjoy preferential treatment of enterprise income tax, import and export tariff reductions and equipment needed for business operations and raw materials.

North Korea's telecommunications, telecommunications, small commodity markets, power plants, cement plants, infrastructure construction and so on, all need a large amount of capital investment, welcome Chinese enterprises to participate in investment and construction.

Korean ideas

"Not today.

The company's people can only see tomorrow and the day after tomorrow.

Wu Yuanri, general manager of North Korea shoe trade company, said that he will return to China in September 29th, hoping that the fair will have a harvest and find a suitable Chinese shoe enterprise to work together.

Wu Yuanri told this reporter that their company is the only shoe enterprise in North Korea. It has rich experience in shoemaking, and there are many shoe factories under it, with complete production links and industrial chains, with tens of thousands of workers.

However, due to the sanctions imposed by the international community on the DPRK, some of the original export products have been restricted, coupled with the aging of machinery and equipment, and the development of enterprises has been greatly affected. This time, we hope that through this fair, we can find common development and cooperation among Chinese Enterprises.

"I come to China every year. Besides normal purchase, I also learn advanced management experience from some shoe enterprises in China."

Wu Yuanri said, at present, for Korean enterprises, what is most lacking is capital.

On the day of the North Korea investment environment introduction and investment project fair, nearly 50 people from North Korea's competent units and enterprise representatives participated, of whom nearly 20 persons were personally involved.

Investment projects involve mining (including gold ore, magnetite, graphite ore, etc.), refining and processing (including ironmaking, steelmaking, etc.), machinery and equipment, investment and establishment of factories (including 1000 tons of shipyards, marine electrical and mechanical equipment production, tire plants, wide range of artificial leather factories, clothing and weaving factories, timber processing plants, etc.), investment and procurement (including food processing equipment, textile equipment, beverage production equipment, metal cutting equipment, etc.) and garment processing and so on, up to 50.

Lu Guangnan, chief of Pyongyang Lianxing trading company, said in an interview with reporters that the economic opening up facing North Korea is the best time for Chinese enterprises to enter investment.

It is hoped that through the exchange of business activities between China and DPRK, we can eliminate some erroneous views of the DPRK and actively participate in the DPRK.

Open up.

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Yin Hengri, director general of the Korean foreign investment and economic cooperation committee, said that in order to protect the investment rights and interests of Chinese enterprises, the DPRK has also become a special committee, the North Korea Science and Technology Assistance Committee.

He stressed that the relationship between China and DPRK is historic. We welcome Chinese enterprises to invest in North Korea, and they will give special preferential treatment, but we hope China will not violate the laws and regulations and investment policies of the DPRK.

Ma Zhenxuan, executive director of the GBD public diplomacy cultural exchange center, said they hoped to build a mutually beneficial platform through cooperation with the North Korea's golden darling foundation. Through this barrier free communication channel between the people and the state, more Chinese enterprises can understand the other side of the DPRK, and let more funds flow into the DPRK to support the economic development of the DPRK.

Ma Zhenxuan believes that although North Korea's laws are not sound and the investment environment is not very good, everything is not so perfect, but a country will encounter problems more or less at the beginning of the opening up of the economy, so long as the "frequency" is good, it will invest smoothly.

The temptation of two islands

At the same time, China and DPRK jointly hosted the North Korea ROK economic and trade zone and the investment forum of the Golden Island and the Wei Island Economic Zone in Beijing. This means that the China DPRK Economic Zone, which has attracted much attention, has entered a substantive stage of investment promotion.

Chen Jian, Vice Minister of Commerce of China, said that the two special economic zones will circulate the renminbi and the North Korean dollar.

Luo Xian Economic and trade zone is located in the northeastern part of North Korea, adjacent to Hunchun city of Jilin province of China and Hassan region of Russia. It will focus on developing the six major industries, namely, raw material industry, equipment industry, high-tech industry and so on.

Located in the lower reaches of the Yalu River and adjacent to Dandong City, Liaoning, the golden beach and Wei Hua Island Economic Zone will focus on the development of information industry, modern facilities agriculture, tourism and cultural and creative industries, and garment processing industry.

Luo Xian Economic and trade zone and golden beach, Wei Island Economic Zone for the development and co management of China and North Korea.

In May 2010, the leaders of China and DPRK reached a consensus on this issue.

Chen Jian, Vice Minister of Commerce of China, said that the development cooperation between the two economic zones is a new thing for both China and DPRK, and cooperation is progressing smoothly.

At present, China has trained more than 300 Economic Zone Construction and management talents for the DPRK.

Li Tieshi, vice chairman of the joint venture investment committee of North Korea, said that the two countries will build two economic zones into a "special economic zone with a world scale".

On the day's briefing, the two Economic Zone Management Committee responsible person introduced the preferential policies for investment.

Li Tieshi, vice chairman of the people's Committee of the ROK first people's Republic of Korea, said that as long as the DPRK run enterprises, all the problem investors had the final say, the DPRK invested in the import and export materials tax-free, and the business profits could be freely remitted to the DPRK, if the service enterprises would be exempt from the one year income tax.

In addition, if the foreign investors invest in the Korean National Award industry, they will be able to give priority to the leasing of land plots with better conditions and give preferential treatment to reduce land lease fees.

Moreover, the DPRK state will not nationalize or levy foreign investors' property. If there is an inevitable reason for nationalization or expropriation, it should be compensated.

In the golden area and the Wei Hua Island Economic Zone, foreigners and vehicles can hold passports or passports for entry and exit certificates. They will enter the economic zone directly from the required passages without visa. A specific enterprise operating for more than 10 years can enjoy tax reduction.

Preferential treatment.

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Li Tieshi said that the DPRK gave most of their autonomy to investors in the ROK first economic and trade zone.

No matter whether the foreign investors set up joint venture, cooperative or wholly foreign-owned enterprises in Luo Xian Economic and Trade Zone, the management and operation of enterprises can be freely chosen.

In addition, the corporate income tax rate in the economic and trade zone is 14% of the settlement profit, which is much lower than the 25% tax rate outside the region.

At the same time, enterprises with foreign investment in operation for more than 10 years will not be exempted from enterprise income tax in the first three years from the beginning of the profit year, but will be reduced within 50% years after the first year. The enterprise income tax is not exempted for the first year of the service enterprises, and the enterprise income tax will be levied within the 50% years after the total investment of more than 30 million euros.

Li Tieshi said that the DPRK encouraged foreign investors to earn profits from operating in the economic and trade zones, and they could freely remit them to the DPRK in a free way.

If the time limit is due, the investor has the right to move the property from abroad to foreign countries.

The DPRK also promised that if the foreign investment enterprises reinvested and made profits, and the business period reached more than 5 years, the DPRK would refund the corporate income tax equivalent to the reinvested tax.

For foreign investors to stay or stay in the ROK economic and Trade Zone, they can also get visa free access directly.

More importantly, the land lease period in the economic and trade zone can last up to 50 years, and the specific time limit can be determined by the two parties in accordance with the land use and investment content.

In addition, the currencies in the two economic zones are RMB and DPRK. In the future, the banks of China and DPRK will establish branches in the economic zone to ensure the settlement needs of the enterprises.

Investors will not be restricted to the operation outside Korea.

The director of the Arabia information exchange center, member of the Executive Committee of the China Africa investment and Development Commission and Mustafa, the representative of Beijing, said that North Korea's move has shown a signal to the outside world this year, and this signal is a good opportunity for both North Korea and China.

Not only can Chinese enterprises benefit, but also alleviate the international community's economic sanctions against North Korea.

Mustafa Safa has a deep personal relationship with the Korean ruler Kim family.

Mustafa Safa believes that at present, for North Korea, it is facing the choice of opening to the outside world.

Before Kim Jong-il's death, the DPRK continued to travel to China to learn the policy of China's reform and opening up.

"Developing the economy is inevitable. Only in this way can the Korean society be stable and the people's living standard be improved."

Mustafa Safa said that although emerging countries have great opportunities, North Korea is the best choice for the analysis of the current international social situation.