Research on Motivation and Benefits of Hongdou Group’s Investment in Sihanoukville Special Economic Zone in Cambodia

School of economics and management, Southwest Petroleum University, SWPU, Sichuan province, Chengdu, China

furuolan@163.com

Abstract

The overseas economic and trade cooperation zone is an important platform for China’s economic cooperation with other countries. It aims to improve the service management level of the cooperation zone and promote the operational efficiency of the park enterprises by drawing on the excellent experience of China’s Reform and Opening. Due to the increase in domestic production costs and the guidance of the government’s policy of encouraging enterprises to “go global”, the countries along the “Belt and Road” have gradually emerged as a boom in corporate investment cooperation zones. This paper analyzes the input and output of the case of Hongdou Group investing in Cambodia’s special economic zone, Sihanoukville, and finds that this kind way of investment is conducive to enterprises to use policy support to “get advantage and complement each other”. Integrating various resources, and gaining the core competitiveness of enterprises in the host country is also the main motivation for Chinese enterprises to invest abroad in the new era. The analysis believes that the initial stage of investment will bring some financial pressure, but in the middle and late stage will play an important economic role, bring good economic benefits, and will bring positive social benefits to the host country, which will benefit for the bargaining power of enterprises overseas.