Investment-Strategies-in-Less-Developed-Areas-Case-of-Xian-City.doc

Investment Strategies in Less Developed Areas Case of Xian CityZhang Pingping, Yin Jie, Feng Yongbin(Xian University of Technology, Xian 710054, China)Abstract: The urgent need for less developed areas of external funding to promote local economic development. But in less developed areas of the investment work for many years there are many problems, such as the blind attract investment, joint ventures, low efficiency and so on, which directly limit the development of their investment. Should be clear on the basis of positioning of the region. Lessons from past experiences and lessons of measures to attract foreign investment.Key words: less developed areas; investment; responses; XianInvestment is the product of the Economic Development, is the scope of the market economy, it developed along with the development of economic zones, but also to promote the development of the economic zone. Investment of the whole work is how economic factors economic zone to attract investors with investment power to stimulate their desire to invest, and eventually to the investment behavior of investors and economic factors combine in different ways, resulting in investment returns. Chinas economy, especially in the coastal areas in the rapid economic development today, the investment has set up development and promoting common economic development of backward areas complementary advantages of the green channel.1, the positioning of investmentInvestment areas investment position is the most important issue must be resolved. The so-called investment position is a region in the development of investment policies should take full account of the regions economic level, economic distribution, the recent focus of development and long-term development strategy, in order to protect foreign investment to develop the type and the same objectives in the region, both to make maximum capital investment led to service the region, but also reduce the difficulty of attracting investment. Less developed regions is relatively low level of economic development, according to local conditions, the use of local advantages investment is very important, so you must first accurate positioning and development of key regional strengths and weaknesses. Case of Xian City.1.1 The overall positioningXian, is the development of Chinese ancestry living in one of the earliest and also built a city with 3100 years of history, the history of 1200 years of history and culture of ancient capital. Since reform and opening, Xian consistently adhere to the people-oriented and sustainable development strategies.Encourage and welcome in Xian in Xian and abroad to invest and conduct trade, various social exchanges and economic cooperation. Absorption of foreign investment in the current area of focus is high-tech industries, restructure state-owned enterprises, manufacturing, tourism, trade, finance, urban infrastructure and real estate development.1.2 The functional partitioning of the regional planning andAnd functions of the regional planning division is aimed at attracting investment to the course of the development priorities of the various divisions foreign capital, foreign capital so that we can guarantee the type and not contrary to local economic development. Investment started late in less developed regions, the eastern region to learn from experience, but the reality of two regions and there is a bigDifferences within the region should be attached great importance to the division of planning and functions.In recent years, regional development to optimize the layout of Xian high-tech industrial development zones, economic and technological development zone, Qu Jiang New District, Lu Ba ecological zones, Yanliang National Aviation Hi-tech Industry Base with remarkable results, forming a four areas of a Bases, New patterns of development, transformation of scientific and technological achievements into the center of Xian base, opening up the window and to promote economic development of a new growth point. High-tech Industrial Development Zone Xian in western China has become the largest scientific research, production, commerce, housing, culture, education and entertainment in one of the high-tech industrial park; Xian, Xian Economic and Technological Development Zone is a window opening, the region with Northwest regions only state-level export processing zone, has been Japans Mitsubishi, Coca-Cola and other 12 Fortune 500 companies invest in the area; Qu Jiang New District Culture and Tourism led strategy to speed up infrastructure construction, has become the new Xian Tour Highlights; Lu Ba ecological zone, Yanliang National Aviation Investment and other high-tech industry base proceeded smoothly, a new economic growth point in Xian. Clearly the function of the regional division of the funds can introduce different types.2 less developed areas of investment problems2.1 Investment in environmental issuesInvestment environment, including the hard environment and soft environment. Less developed regions do not have the mainland coastal areas like geography, infrastructure and public services are lagging behind, although in recent years done a lot of work, but overall it seems not ideal.Hard environment problems existing in the construction of infrastructure duplication: the current infrastructure in Xian, there is a serious problem of duplication of infrastructure; urban planning shortcomings and more: the lack of experience, Xian urban planning achievements as well as the shortcomings of more ; urban poor sanitation: the Xian geographical, historical and other reasons why environmental health, especially in Xian city poor state of health, despite nearly two years, health town improvement improved a lot, but compared with other regions the gap is still large.Soft environmental problems are the stability of investment policies and lack of transparency, excessive government intervention, imperfect investment network. In addition, irrational investment structure and other issues.2.2 Construction of small-scale foreign capitalChinas opening up a gradient from coastal to inland gradually expanded. The investment of foreign Xian late start construction in the intensity of foreign capital has been insufficient, leading to small-scale, thus restricting the rapid economic development. According to Foreign Trade and Economic Cooperation Bureau in Xian (Xian, China Merchants) statistics show that the establishment of foreign investment from 1983 Golden Flower Hotel, Xian start to 2002, the actual foreign capital of Xian to $ 203,000,000, while the actual foreign capital in 2006 $ 825,000,000, four times increase over 2002. Although the scale of the rapid development of investment in Xian, but still relatively small compared with other regions, and because the proportion of foreign capital for the construction of smaller, resulting in attracting funds can not be good for the regional construction services.2.3 The investment structure is irrationalAlthough the number of foreign capital has increased, foreign capital has been expanding, but the irrational industrial structure to attract foreign investment, attract foreign investors, often one-sided pursuit of the introduction of the number of funds, ignoring the quality of the introduction of the project, so the introduction of sources of capital in the industrial distribution and structure is not rational. For example, the introduction of project, service-oriented investmentHigh proportion of the project. Meanwhile, the introduction of the investment is not with us some of the optimization of industrial structure combination, especially not with the existing scale and brand effect of the combination of national industry, making the industrial structure, part of the imbalance.3 Problems in Attracting Investment3.1 establish a correct concept of investmentCorrect concept can bring the correct behavior. Therefore, the work of local governments to attract foreign investors should first correct their attitude, to establish a correct concept of investment.One must be clear investment objectives. Work in the investment according to its own conditions, their own needs, targeted foreign investment. Only in this way, attracting investment to receive results.Second, investment must be clear direction. Mainly from the optimization of industrial structure point of view, those of the regions economic development from the chain effect of the industry, can promote the region prior to the industrial and post to the industry, horizontal industry and vertical industry pace in order to optimize the local industrial structure, promote industrial upgrading; also put an end to high consumption and high pollution, a large number of cultivated land is not conducive to protection and development of land resources projects, such projects not only damage our contemporary need for resources, but also for our future generations to meet their own needs pose hazards.3.2 The correct positioning of the governments role in the investmentFrom the perspective of a market economy, investment is a kind of economic behavior, the main investment is the enterprise rather than government work in the investment business has to standPlay a leading role in the first line, and the government retreated to the second line should play the role of guidance and services. Some things government should seize the following four focus on promoting investment activities. First, according to their supporting industries, local resources, location advantages and other factors, combined with industrial restructuring, the elaboration of local and long-term development plan. Second, make great efforts to optimize the investment environment. Third, attach importance to all aspects of the training, the introduction and use of, and should exercise their own investment activities of intermediaries and investment professionals. Fourth, do a good job of external publicity.3.3 good investment environment improvingHard and soft environment for investment problems in the environment be improved, focusing on the overall environment. With increasing foreign investment in China mature and stable, relying on strengthening infrastructure, development of preferential policies have attracted not reflect XianThe advantages of foreign investment. Province is located in the interior, if only the development of investment preferential policies, we are located, attracting talents far and the eastern coastal cities. Therefore, to enhance the overall environment of the construction investment is undoubtedly the long-term stability to attract foreign investment in one of the important factors.In addition, to improve the overall quality of staff and diplomatic skills, adhere to honesty and trustworthiness, respect for the rule of law. The investment under the laws and regulations, does not allow for the temporary sacrifice the rule of law, damage the fundamental interests of the nation.3.4 adopt the correct investment approachInvestment means investment method or the right or not, a direct impact on investment results. Approach taken to attract foreign investors, should be our serious thought. Current investment practices can be used as follows: (1) to make use of advantages of using a good relationship between private foreign capital to attract foreign investment. Each region has certain advantages, has its own unique strengths, whichSamples according to their own advantages over attracting foreign investment, rapid expansion of business scale, and improving economic and technical benefits, such as lead outside to outside or foreign capital through the domestic financial intermediation, and so on. (2) the establishment of specialized investment institutions, training of specialized investment professionals, with a special investment fund. I know that the provinces of Sichuan, and many have their own institutions specializing in investment and special investment funds. Xian can refer to similar practices elsewhere in order to strengthen the unity of this work, focused, systematic, planned for introduction to and out of the business to provide a systematic, professional services, and domestic and foreign investment entities hairDevelopment dynamics, timely, accurate and available to enterprises for enterprises to seek business opportunities. (3) Vigorously develop intermediary organizations, and expand investment channels. Investment intermediary organizations is the weak link in Xian, the number of intermediary organizations, the quality of the degree of specialization and the existing mode of operation, far from meeting the needs of enterprise development services. ShouldIncubator building and attention to accounting, legal, outcome assessment, definition of property rights and other intermediary service system.4 SummaryLess developed regions do not have the mainland coastal areas like geography, infrastructure and public services is relatively backward, matching funds, it is also not as developed areas, so the investment strategy should be developed on many different areas. Should further clarify the regional development planning,