Copyright 2022 - Ningbo Life / Ningbo Expat

Ningbo releases report of overseas contracted projects

“Overseas contracting is one of the important ways for Ningbo enterprises to ‘go global’ and also an important starting point for jointly building the ‘Belt and Road’ area.” said a related person in charge from Ningbo Bureau of Commerce recently. The latest statistics show that the city has achieved a total labor cooperation turnover of US$25.64 billion for overseas contracted projects in 91 countries and regions.

With the continuous promotion of the joint building of the “Belt and Road” area to the direction of high-quality development, Ningbo has begun to change from the scale and speed type to the quality and efficiency type in terms of foreign contracted projects. Construction enterprises have been actively expanding overseas markets, participating in the country’s foreign economic assistance and the construction of “Belt and Road” projects, by undertaking projects in Southeast Asia, the Middle East, South America and Africa.

In 2021, there were 186 registered overseas enterprises and institutions, with the registered (approved) Chinese investment of US$2.43 billion, an increase of 85.92% over 2012, and the turnover of labor cooperation in overseas contracted projects stood atUS$1.88 billion, an increase of 51.86% over 2012.

In recent years, against the background of slow recovery of the world economy, sluggish growth of the global infrastructure market, and sluggish performance of the international contracted project market as a whole, Ningbo continues to promote the innovative development of overseas contracted projects, and actively contributes Ningbo’s wisdom and strength to the social development of China and the host countries concerned.

Innovation has been encouraged in overseas contracted projects. Ningbo strives to explore a new mode of contracting overseas projects, and promotes enterprises to contract overseas projects in an integrated way of “construction and operation”or“investment, construction and operation”. For example, Risen Energy’s solar power station projects in Cambodia, Vietnam, Mexico and Australia achieved a turnover of US$170 million in 2021 through the integrated development of “investment, construction and operation”.

Export of equipment has been driven by projects. Ningbo encourages enterprises to give full play to the manufacturing advantages and drive the export of complete sets of equipment while contracting overseas projects. For example, in 2021, Zhongce Power included the export of its complete sets of equipment in the revenue of both of its overseas projects with the turnover of US$32 million and US$48.74 million respectively.

In addition, Ningbo has continued to expand financing channels for overseas projects. In view of the fact that overseas project contracting enterprises lack financing channels, the Bureau of Commerce, together with relevant departments of the Finance Bureau and the Housing and Urban-Rural Development Bureau, has conducted in-depth research on how to use the low interest loans of the World Bank to boost the development of Ningbo enterprises. “Next, we will continue to improve the international layout of overseas economic and trade cooperation, improve overseas investment policies and service systems, and promote the in-depth development of overseas investment cooperation.” said a related person in charge of the municipal Bureau of Commerce

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