HUAWEI And Other 138 Chinese And Foreign Enterprises Have Entered The "One Belt And One Road" Initiative To Escort Nigeria Lai Kei Free Trade Zone Into The Fast Lane Of Development.

As an important starting point for the construction of "one belt and one road", the scale of construction of overseas economic and trade cooperation zones has been expanding. The second "one belt and one way" International Cooperation Summit Forum has set up a special forum for foreign trade and economic cooperation. The Nigeria Lai Ji free trade area is one of the representatives of the park invited.

Lagos is the economic and financial center of Nigeria and West Africa. The gross national product accounts for nearly 1/3 of the whole country. The Lai Ji free trade area is built on the Lai Ji Peninsula in the southeast of Lagos, about 50 kilometers away from the urban area. The FTA is jointly invested and built by China and Nigeria. The Chinese shareholder "China Africa Lai Ji Investment Co., Ltd." is composed of China railway construction, China Africa Development Fund, China Civil Engineering Group and Nanjing Jiangning economic and Technological Development Corporation, which has a 60% stake.

"Lai Ji free trade zone" is one of the early nine national level foreign economic and trade cooperation zones confirmed by the Ministry of Commerce and the Ministry of finance. At present, there are larger overseas parks with larger planning area, but we are the largest ones in actual development area. " In April 15th, Lai Siqing, director of the Lai Ji free trade area and deputy general manager of China Africa Lai Ji Investment Co., Ltd., said proudly. The Lai Ji free trade area has a planned area of 30 square kilometers, and the total investment is estimated to be about 2 billion dollars. "At present, we have invested nearly $300 million to achieve four links and one level, and the corresponding supporting facilities have been basically completed, and the park has begun to take shape."

"The most difficult period is over."

In the southeast of Lagos's Lai Ji Peninsula, Chinese enterprises are building a modern comprehensive city with production, life, leisure and entertainment as one. "In the future, it will be like Shanghai Pudong or the Binhai New Area in Tianjin, which is also a reference to China's experience and practice in the construction of the park in the past forty years of reform and opening up." In April 15th, Lai Si Qing told reporters on twenty-first Century economic report.

As Africa's largest economy and the largest population, Nigeria attracts huge investments from various countries to invest in oil, banking, manufacturing and construction. According to the Ministry of commerce data, in 2018, Chinese enterprises invested 100 million dollars in the Nigeria industry.

"The most important thing for Chinese enterprises to come to Nigeria is the market, and the profit rate is high." Lai Siqing said, "I went to Africa for the first time in 2007, and I was very impressed. At that time, hotels in Ethiopia cost $300 a night, which is more expensive than Beijing because there are too few hotels. So in Africa, the same products may be priced higher than China, and there are great business opportunities. "

China's enterprises are deterred by the security and supporting problems of Africa. Lai Siqing believes that the reason why the Chinese government encourages the development of overseas economic and trade cooperation zones is to create a relatively safe "local" business environment to help Chinese enterprises to "go out" to reduce risks. However, for the park developers, "going out" is equally difficult.

"The most difficult period has passed." Whenever recalling the more than 10 year history of the development of the park, Lai's most common phrase is this sentence. "Nigeria is nearly ten thousand kilometers away from China. Although it has been prepared for difficulties in running the park in Africa, it is not expected to be enough, and there is a certain gap compared with the feasibility study report."

Like other African countries, Nigeria's infrastructure conditions are lagging behind. This is the first big obstacle. Enterprises have to build their own power plants and waterworks, resulting in a huge increase in costs and a continuous cycle. There are many aspects involved in the development of overseas cooperation zones. A park is like a "society". It is difficult for a foreign enterprise to coordinate all sides.

After more than 10 years of operation, a water plant and a natural gas power station have been built in the Lai Kee free trade area to protect the water supply and power supply of the park. In view of the risk of "customs clearance, long cycle and low efficiency", the free trade area has moved the customs into the park and settled in the enterprise's import and export goods, which can directly clear and declare the customs in the park, which greatly improves the efficiency of customs clearance. With the use of the "one stop" service hall, the export processing authority, customs, immigration and police stations are all in place, providing one-stop services for the enterprises in the park, and the park police and security teams patrol for 24 hours.

"Before 2015, merchants will have a headache. It will be nice to recruit two or three people a year." In Lai Siqing's words, enterprises are "less frequent visits and no more news." "In the past, we had a small number of investment and small scale, and most of them came to rent factories. Before 2015, no enterprise in the park really bought land and built factories to make long-term investments. Over the past four years, enterprises in the park suddenly blowout and their strength is increasing. There are more than 30 enterprises to buy land and build factories.

At present, 138 Chinese and foreign enterprises have gone through the business license to enter the country, involving oil and natural gas storage, furniture manufacturing, clothing production, trade logistics, engineering construction services, industrial real estate, automobile assembly, steel structure manufacturing, steel pipe production, daily necessities and other industries, and the total investment is nearly US $1 billion 500 million. Among them, 75 enterprises (including 44 Chinese funded enterprises and 29 Foreign Investment) have signed investment agreements and have been put into operation gradually, including HUAWEI, China heavy duty truck, and long Liqi.

"Soon 3 companies were ready to go. At present, we have sold 3 square kilometers of land, and all the smooth land has been sold out. The next step is to speed up land leveling and grasp the rhythm at the same time. Lai Siqing said, "we will give priority to the introduction of leading enterprises and choose projects that are compatible with the planning objectives and can stimulate the industrial chain. Gradually establish investment access mechanism, from the past "investment" to "choose business" transition.

Lai Siqing told reporters that it is in the "one belt and one road" initiative and the international production capacity cooperation strategy that the Chinese enterprises' enthusiasm and ability to go out have been greatly strengthened, so that the park has really ushered in a "rapid development period". On the other hand, the decline of international crude oil forced the government of Nigeria to accelerate the process of industrialization and attract investment vigorously, and the park became the most important investment platform.

Long term hope to solve 50 thousand jobs

Nigeria has become the largest oil producing country in Africa since the 70s of last century, and 85% of the government's revenues depend on the oil industry. The development level of its manufacturing industry is low, and most industrial products depend on imports. In order to adapt to the level of industrial development, the Lai Ji free trade area has set the business and logistics industry as a leading industry, and the manufacturing and processing industry as the dominant and basic industry.

"Most of our parks are private enterprises engaged in industrial manufacturing related industries. Their investment in projects is not very large. Their products are closely related to the lives of ordinary people, and the market demand is very high. It not only fills the gap of the industry, but also improves the living standard of the ordinary people. Lai Siqing said.

At present, the enterprises in the Lai Ji free trade zone have invested 191 million US dollars to achieve a total output value of US $254 million and turn over to Nigeria government tax and fee 12 billion 400 million, which directly leads to over 30 million US domestic exports and more than 1500 direct jobs for the local government. Lai Ji FTA has also set up a "community development fund", from the construction of the free trade area each year, 0.5% of the funds to support the development of the surrounding communities, including road repair, well drilling.

"By the end of this year, the number of jobs we will provide will increase by more than 50%, because two big factories will be put into production. The project will add 1000 employees and a shoe factory will employ 500 employees. The wages in the park are higher than 20%-30% outside the park, so everyone is willing to work in the park. Lai Siqing said the long-term goal is to solve the employment problem of 50 thousand locals after the whole park is completed.

The reporter learned that the total investment of long Liqi in the Lai Ji free trade area is US $50 million, which is planned to be put into operation by the end of this year for the production of health products, cosmetics and washing products. "The Nigeria market has become an important breakthrough for long Liqi to accelerate the international market." Xu Zhiwei, chairman of long ridge, told the twenty-first Century economic report in April 18th that after the project is completed, it will become a first-class intelligent chemical plant in Nigeria and even the whole African market. It will provide a large supply chain guarantee for the promotion of the African market in the long ridge. It can also provide OEM generation processing services for Nigeria's important local brands and radiate the whole African market.

The Asian and African International Lai Ji FTA company (hereinafter referred to as "Asia Africa International") mainly operates commercial vehicle assembly business. Sales increased by 35% in 2018, and the production and sales amounted to 45 million yuan in that year. Sun Yuchao, general manager of Asia Africa International, told reporters on twenty-first Century economic report in April 19th that Nigeria had great demand for commercial vehicles such as heavy trucks. Therefore, the company will continue its product development. On the basis of the first phase of the factory's investment of 80 million yuan, it plans to invest 300 million yuan in the two phase, and improve the overall commercial vehicle operation chain of the commercial vehicle production, sale, after sale, finance and second-hand car repurchase.

"We expect to complete the overall investment in the next three years, reaching 3000 -4500 commercial vehicles per year, and the marketing revenue is expected to reach 300 million yuan / year." Sun Yuchao said.

Overall consideration of policy resultant force

The Lai Ji free trade area has won a series of preferential policies for enterprises, such as permanent exemption of corporate income tax and other taxes. There is no quota restriction on imports, capital and profits can be freely remitted; foreign investors are allowed to be allowed; there are no trade unions in the park to avoid frequent strikes. The park policy was promulgated in the form of a government bill, which ensured the stability of the policy.

Last year, Nigeria and the Chinese government signed a cooperation document on "one belt and one road". Lai Siqing believes that this policy implementation and refinement of the park is a greater promotion and protection. "The signing of cooperative documents has created a better environment for us. The Nigeria government may have more understanding and support for overseas economic and trade cooperation zones. It will be easier for us to coordinate with other parties when there are problems. "

The development of overseas cooperation zones has the characteristics of large investment, long cycle, slow returns, many difficulties and great risks. Profitability is always a major challenge. Lai Siqing said that the park's income mainly comes from land leasing, rent and management fees. In the low level of industrialization and urbanization, land prices will be cheap and profits will be more difficult. "We are in the past few years, land sales situation is constantly improving, after years of investment, the park's hardware and software have been greatly improved, land prices rose by two to three times."

The two "surprise" also brought a brighter profit outlook to the Lai based FTA. It is understood that in the Lai Ji free trade area, Africa's richest man, Dan, bought 27 square kilometers of land, plans to invest $9 billion to build the world's largest monomer refinery; from the free trade zone 3 kilometers, China's port is building the largest deep-water port in West Africa -- Lai Kei deep water port. The federal government of Nigeria is working to create a special export oriented Special Economic Zone, which will play an important role.

"These two positive benefits are a great boost to our land price." Lai Siqing said that as the investment situation improved and business output increased, the business situation of the park was gradually improving. "Our goal is to make profits this year, but it will take some time to recover the total investment. The franchise of the park is 50 years. We have entered a virtuous circle, and the profit outlook is very optimistic.

Lai Siqing told reporters that in the light of their own development practice, some suggestions on the construction of overseas economic and trade cooperation zones were put forward: we hope that the state will co-ordinate the overseas layout of the park in the policy level, and establish a corresponding mechanism with the government of the host country to sign the bilateral agreement; the legal status and preferential policies of the park will be signed; the continuous policy support for the key parks will be maintained; the stability of the policy will be maintained; and the financing difficulties of the overseas parks will be difficult. As the assets and financing entities are outside the territory, the financing sources are within the territory, and it is difficult for them to get through. They hope that the state will give support to the financing. China can strengthen the training of the personnel in the country of the project, including officials and technicians, and hope that the policies of the state's foreign trade and economic cooperation can be considered as a whole to form a resultant force.

"For example, the Lai Ji free trade area, the port and refineries are being built, and the flow of people and vehicles suddenly rises, and the road outside the park is overwhelmed. If we take overall consideration into consideration, our government will get better results if we integrate African infrastructure assistance with the needs of the park. " He said.