Marketing strategy for light weight steel truss system Vision truss in Vietnam construction field period 2006 to 2010

But for the speed of high development of the construction service at present about 20-30% every year, those materials become expensive and the supply source is not stable, that is the re

MMVCFB PROGRAMME DE MAITRISE EN MANAGEMENT

VIETNAM-COMMUNAUTE FRANCAISE DE BELGIQUE

PHAM THANH PHUONG

MARKETING STRATEGY FOR LIGHT WEIGHT STEEL TRUSS SYSTEM

“VISION TRUSS” IN VIETNAM CONSTRUCTION FIELD – PERIOD 2006 – 2010

MASTER DEGREE THESIS IN MANAGEMENT

(MMVB 6)

Guidance Counselor:

Prof Dr LE TAN BUU

HO CHI MINH CITY

2007

This is my original work Any data, result or quote in the work is clearly identified

PHAM THANH PHUONG

useful guidance, suggestions and encouragement through out the research work His enthusiasm has helped me to be more confident in carrying out the research

I also would like to express my sincere appreciation to all of the Professors & Co-ordinators of Viet Nam – Belgium Master in Management Programe for their teaching, assistance and supporting me in studying and fulfilling the research

I also would like to extend genuine thanks to my closed friends and MMVCFB6 classmates for their warm sentiment and sharing

The last but the most wholehearted gratitude I wish to express my sincere thank

to my family, especially my wife and 2 sons for their loves, cares, encouragement and supporting through out my life

After the 6th National Party Congress in 1986, we have confirmed the direction correctly for our nation, and nowadays our Vietnam is on the way for development to become a newly industrial country in 2020 Even there are some restrict but we also got some achievements relatively in economic development

In order to serve for the development of the country, the construction service will occupy a part relatively to contribute into this development, but for the speed of high growth the traditional materials will be replaced by the new ones with the source for supply is more stable, and compatitive price and it will bring more profitable for the projects

In the construction service, the building materials are very diversified and abundant, they are made from a lot of different sources and especially to be favourite that they have been made from the natural material source But for the speed of high development of the construction service at present about 20-30% every year, those materials become expensive and the supply source is not stable, that is the reason for appearance of a lot of new materials in the construction service in which there is the Light Weight Steel Truss System for the roof of the projects

Due to a new product in the construction service therefore the contact with the customers and penetration into the market has met a lot of difficulties, the writer researches this topic with the desire to show a marketing solution more concretely

to take the products to customers more effectively

To stipulate the situation for use of materials for the roofing system of the projects of Vietnam before from a lot of different materials, through that to appraise the contribution of the system of Light Weight Steel Truss System for the construction projects with the profits brought by it to the projects and customers

To show a strategy for marketing in discovery and penetration into the market for the roof of the construction works with materials made of Light Weight Steel Truss System - Zincalume on the foundation for analysis of the situation for construction in Vietnam Beside that the writer also shows the solution for option

to the customers on the foundation for comparison of the materials characteristics, expense, longevity of the work and the other strengths of the Light Weight Steel Truss System - Vision Truss in comparison with the other products in the market

of Vietnam construction materials at present

Some statistical data and analysis will help for the investors, the owners of project see the trends that need to change at present in the building material service, through that it is the basis for these units to have more the necessary information

to show the suitable decisions when collecting the materials for roof of their projects

To help for the customers to search deeper about the preeminent characters of The Light Weight Steel Truss System made from Zincalume high tensile steel, for the projects that can use this kind of materials, from that the customers have the new vision and easy to receive, to collect the products for the purpose to take the

Light Weight Steel Truss System to occupy the market share bigger in the Vietnam construction market

The Light Weight Steel Truss System - Vision Truss is made from the Zincalume high tensile steel, the operations for contact and penetration into the roofing market of the construction works in Vietnam of Vision Pioneer Construction Company and planning the marketing strategy for this product in the period 2006 – 2010

This topic is researched to show a marketing strategy for the products of Light Weight Steel Truss System - Vision Truss of Vision Pioneer Construction Company in the plan for penetration into the Vietnam construction market

The scope for research concerning the kinds of the other products of the roofing system of the projects, the investors, the enterprises in domestic participate for design, consultation and execution of the construction works

Some comparisons between the kinds of materials for making the roof of the projects from the sources of the different materials, from the traditional materials

to modern ones, with the origin from in domestic and overseas

Basing on the knowledge harvested from the university program, the program for training Vietnamese – Belgium Master in Management

Basing on the working experience in the construction service for over 10 years of the writer and the positions spent in the work such as a sales, marketing and management in the construction companies or trading building materials

Basing on the data of the magazines specialty for construction, the results for research of the companies for specialty in building materials, quoted the documents concerned, collecting the information in internal and external service

to make the basis for argument in implementation of this thesis

The thesis is divided into 4 key chapters as follows:

Chapter 1 : Theory basis for marketing strategy

Chapter 2 : General introduction of Vision Pioneer Construction Company

Chapter 3 : Analysis of the opportunity of Vision Truss in Vietnam

Chapter 4 : Marketing strategy of Vision Truss in period 2006 - 2010

The term strategy with the origin from the Greek language with two words of

“Stratos” – that means the army, or group and “agos” – Leading, controlling The strategy is used the first time in the military to show the big plans, long term shown on the basis to believe firmly what the enemy can do and what the enemy can not do Normally the people understand that strategy is science and arts for military command, to be applied for making the general plan and carried out the campaigns with the big scale

From the decade 60 of the century XX, the strategy is applied into the field of business and the term “Business strategy” was born However the conception of the business strategy is also developed gradually following the time and the people also contact with it following a lot of different ways

Following the traditional way for contact then “The strategy is the definition of the basic aims for long term of the enterprise and implementation of the program for action together with the distribution of the necessary forces to get the confirmed aims” We can also understand that: The strategy is the approach that the enterprise uses for orientation of the future for reaching and remaining the development

In difference with the conception above, Mintzberg contacted the strategy following the new ways, he considered that “The strategy is a sample in the flow

of the decisions and programs for action” Thus to his mind the strategy has the origin from any location, where the people have ability to study and the power source to support it, indeed the strategy of the enterprises is the combination

between the intent and sudden mutation Mintzberg shown the model of the periods for strategy as follows:

Even how the way to contact then the nature of the business strategy is still the draft of the future imagine of the company in the region for operation and ability for discovery Following this understanding way then the term of the business strategy is used following three most universal meanings:

1 Definition of the basic aim in long term of enterprise

2 To show the programs of general action

3 To select the plans for action, to deploy for distribution of the resources for implementation of that aim

The strategy is a set of the aims and policies as well as the essential plan to get those aims, it shows clearly what the companies are or will be implementing business operations and the company would or will belong into what business field

Intended

strategy With conditions

Feasibility

Unreal conditions

At present for management of the strategy is implemented at a lot of different levels in an organization, but for the business units, there are three strategic levels that are usually applied as:

This is a pattern of the decisions in a company, it determines and shows clearly the purpose, the aims of the company, to define the business operations that the company follows, to make the basic policies and plans to get the aims of the company

In an organization with the diversified extent and level, the strategy of the company is usually applied for whole factory

The strategy of the company stipulated for verification of the business operations that in which the company will compete and distribute the power sources between those business operations

The Strategic Business Unit is planned for definition of the selection of products

or the concrete form of the market for the business operation respectively in the internality of the company and it defines how the company competes with a

business operation in same location that has known of the company itself between its competitors

The strategic business units of the enterprise defines the way of each business unit will try to complete its aim to contribute the completion of the aim for the grade of company If the company is the single service then the strategic business unit can be considered as the strategy of the grade of company

To concentrate for support into the arrangement of the strategy of company and concentration into the working strategy, the business fields

Even in any level, the strategies also observe the basic process as follows:

The need of human is the manner for shortcoming that should be satisfied at first Those are what the human need such as foodstuff, clothes, housing … for

existence These demands are not made by the society or the persons doing marketing that they generate from the instinctive psychology of the human

That is the form of the human need at the deeper level, more concrete The wants

is formed basing on the factors of the culture, religion, school, family and even the enterprise Thus the wants also generates from the psychology of the human but it has the consciousness The wants of the human usually is more diversified

in comparison with the demand

Marketing should commence from the requests, wants of the human

The demands are the wants of the products concretely that has the calculation to ability and readiness to buy them The wants will become the demands when having the purchase

The company must measures not only for the quantity of the persons who want to buy the products that the more importance is the quantity of the persons who have ability and ready to buy them

Marketing not to make the needs, but it can affect the wants Marketing affects to the demands by making the suitable, interesting, convenient products … for the aimed customers

The products are any thing what are launched to the market to satisfy the demands and wants of the customers The concept of the products in marketing including even the material products and immaterial products

The exchange is the behavior to receive what to want from a persons and hand to the another The change is one of four solutions that the human use to have the products For remaining three solutions are self–production, arrogation and bagging from the other people

The market including the customers who have the needs or the wants unsatisfied, have ability and ready to participate for exchange to satisfy those demands or wants The market of a company includes even the governmental class and other public…

The customers are the personalities or organizations that the enterprises are aiming the marketing effect to Those are the personalities or organizations who have the condition to issue the decision for purchase

The consumers including the personalities, households use or consume the products

Marketing is an English term with the black meaning ‘making the market’ This term is used officially for the first time in 1902 in Michigan University in the USA Although the marketing operation has been implemented so long but nobody has the concept or definition what it is, to the years at the first of 20thcentury, the most basic concepts for marketing have been mentioned by every one; such as Hamilton Academy of the USA defined about the marketing operation as follows: “Marketing is the economic operation in which the commodity is taken to the consumers by the manufacturer” For a simple definition of the marketing operation at that period, but spending the period for formation and development, the content of the marketing operation is more complete and abundant Nowadays marketing has become a part that can not be shortcoming of the enterprises, especially in the competitive economy at the level for global violation as present

Since the birth to the years of 30 of the 20th century, the traditional marketing is considered as passive marketing, it means that the marketing operation is only limited in the business field, the commodity was produced already and the marketing operation is just for the purpose to speed up the consumption of that ready-had commodity so quickly with the purpose to get the highest profit

Every thing has changed since after the world war two, this period due to the reconstruction of the exhausted economies in the war, the business operation developed quickly, the economic situation of the world with more changes, further more the application of the scientific achievements in the war into the economic development to make the technology has changed constantly, this lead the commodity, products of all kinds were launched out more and the grade is more diversified and abundant, the cost price is lowered but the quality hasn’t ceased enhancement in comparison with before, also due to the strong development of the transportation therefore the distance about the geographic aspect of the countries seemed to be shortened to lead to the market for expansion day by day, and thus the customers will have more comparisons and selections when deciding to buy some product, this period the competition becomes more severely, the customers become fastidious and have the demand much higher in comparison with before It is very this matter to make the consumption of commodity not to be easy as before, and for that in order to consume the produced commodity that the people should research to find out the solutions to apply in order to bring back the higher effect On the basis of traditional marketing that “selling what we have”, now, marketing has had the changes of the view of point and the way for implementation, that the people do not only sell what they have more that now they have ‘sold what the customers need’ The modern Marketing is more completed, it considers that the market is the most important knot of the period for reproduction of commodity, thus the modern marketing includes the operations and calculations concretely about the

aims, the strategic intents before production of commodity to the operations for consumption of the products and service after sales

Following is some views of point and concepts of modern marketing of the organizations, associations and the researchers of marketing in the world to be accepted and propagated:

- Following CIM (UK’s Chartered Institute of Marketing) then Marketing is

the aware administration process, forecast and satisfaction of the demand

of customers effectively and profitably

- Following AMA (American Marketing Association, 1985): Marketing is the

process for planning and implementation of the creativeness, pricing, proceeding and distribution of the ideals, commodity and service to make the exchange and satisfaction of the aims of personality and organization

- Following Groroos (1990): Marketing is the operations for establishment,

remaining and reinforcement for long term the relations with the customers profitably to satisfy the aim of the parties This is implemented by the change between the parties and satisfy the promised things

- Following Philip Kotler and Gary Armstrong, 1994 – Marketing is the

proceeding through that the personalities and groups can get the demands

and wants by creativeness and exchange of the products and value between the parties

- Following William J Stanton, Michael J Etzel, Bruce J Walker, 1994 –

Marketing is a system of the business operations for design to plan, price, proceed and distribute the products to satisfy the desire of the aimed markets for reaching the aims of the organization

The Light Weight Steel Truss System is introduced in the market in 1976, the Zincalume high tensile steel was developed after many years for research to enhance the longevity of the traditional steel coated age By mixing aluminum with zinc to make an alloy to use for plating metal, the researchers of Blue Scope Steel Company (Australia) found out the solution to enhance the ability for anti-erosion of the steel for many times The ability for anti-corrosion of Zincalume high tensile steel is higher than Zinc coated steel of four times and for many times

in comparison with mild steel steel

The coated layers component of Zincalume high tensile steel includes 55% aluminum, 43.5% zinc and 1.5% silicon, the structure of the coated layer is demonstrated as following picture:

The Zincalume high tensile steel is coated a layer 25 micron thick on each surface of the steel plate with the weight of the galvanized layer in totality of 150 g/m2

The Zincalume high tensile steel with the strength of lightness, activeness and durability, the intensity of the mild steel of 30% to make an advantage for the rate

ZAL

Zn Al Si Alloy layer

of weight is the exceeding factor in comparison with all normal other building materials, this has the meaning that the Light Weight Steel Truss System will be executed much easier to decrease the expense during the construction

During the use the customers can be peaceful that Zincalume high tensile steel is produced following the standards with the highest quality, to use the most advanced production technologies, these standards and orientations of quality of Blue Scope Steel to ensure the produced products with the high belief as well as the solutions for use of these products such as application for the Light Weight Steel Truss System VISION TRUSS

The Zincalume high tensile steel is used successfully in a lot of the design for structure of steel in nearly 30 years ago, it has been proved through the time because it is designed for existence in the conditions of the most severe climate Indeed the Blue Scope Steel Company has followed the quality of this product under the climate condition at the locations for experiment outdoor globally during over 3 decades ago

The coated layer of aluminum/zinc alloy of Zincalume high tensile steel to protect for steel and make the exceeding quality following two main ways as follows:

- Firstly following the guarded effect, the atmosphere is always wet and

existent the separated salt therefore the aluminum oxide membrane AL2O3

is formed so durably, to cover whole the surface of aluminum, to make

durability of aluminum layer, at that time the aluminum membrane protects the steel by guarded effect

- Secondly following the electrification principle: The zinc in the component

of the galvanized layer in the atmosphere that is always wet there are the salts for separation of zinc to sacrifice to separate the steel and change it into catode, it means to make inertness of the steel, this has the very important meaning because the edges or the places of the galvanized layer are scraped or the cut edge when executing (this has always occurred in the construction), to expose the steel, but it is not still eroded in the environmental condition

For principle, the erosive level belongs to the coated layer of materials and environment of that products for existence There are three universal solutions used to appraise the ability for anti-erosion as well as the longevity of the products These solutions are:

- Experiment in the laboratory

- Environmental effect outdoor with the samples assembled in the concrete

environment

- The experience for application actually, based on the recognition of the

working ability of the different products used in the works

The said chart summarizes the result of some programs for experiment outdoor It forecasts the desired longevity of the galvanized steel (the weight of the galvanized layer of 270 g/m2) and the Zincalume high tensile steel of (AZ 150), both have the same thickness of coated layer

Basing on the experiment result of 11 samples of Blue Scope Steel, the Zincalume high tensile steel has always kept better then the galvanized steel in all environments from the severe sea to rural environment The forecasted longevity of Zincalume high tensile steel is about 100 years or more, outdoor in the severe sea environment where the Zincalume high tensile steel exists about

20 years, this result has still escaped far in comparison with the galvanized steel

in the similar environment

AZ150Z275AZ150 / Z275

55%Al-Zn Coated Steel versus Galvanized Steel

The data that has been collected to now about the Light Weight Steel Truss System showing that the Zincalume high tensile steel will be better than the galvanized steel in the application of the truss system, the experiment of the collect of data has still been continued implementing by the Blue Scope Steel Company

The third factor for the decision of the quality of the product is the experience for actual application The results of the experience for actual application from the experiment at the site to globally have also confirmed the exceeding quality of the Zincalune steel The Zincalume high tensile steel is really an ideal materials for the truss system from the regions where have the temperate climate belonging

to the South of Australia to the tropical countries belonging to the Asia such as Indonesia, Malaysia, Thailand of Vietnam

As per the result for research of Blue Scope Steel Company then the projects for use of Zincalume high tensile steel in Australia have existed to 25 years that they are not rusted while the galvanized steel appeared the red rusted spots in same period

For such exceeding strengths, the Light Weight Steel Truss System used of Zincalume high tensile steel is a new trend with full potentials in construction, it brings to the construction projects the safety, quality, high density, durability and the union of the structure

- The main materials: The Zincalume high tensile steel AZ150 – G550

- The thickness of the shaped C truss:

+ 0.8mm for C100 bar

+ 1.0mm for C100 bar

- The thickness of the shaped A batten:

+ 0.5mm for A41 bar and A35 bar

+ 0.65mm for A61 bar

- Fastened self-drilled screw

- The designed standard for the high tensile coated steel:

- Wind loads: Following Vietnam standard

- Designed suitably for each different kind of roof such as roof of concrete tile, burnt clay tile and metal sheet

- The distance of the truss is 1.2m for the roof of tile and 1.7 – 1.9m for roof

SMARTRUSS, at first it was only the small works, the respective villas… then the Blue Scope Lysaght company participated some big projects

Besides that, in 2005 the Vision Pioneer Construction Company participates the market of the Light Weight Steel Truss System, with the trademark of the product

is VISION TRUSS, the raw material is also used of the Zincalume high tensile steel imported from the counterpart in Malaysia (produced by Blue Scope Steel Malaysia Company), with the specific designed software rent from BridCAD Company (Australia) written only for Light Weight Steel Roof Truss of British standard BS 5950:2000 or following the Australian standard AS4600:1996 in the construction service

Although it has just appeared in the Vietnam construction market for some years but the potentials of the industrial service for Light weight steel for the truss system of the works is very big, following the statistical data and analysis of the Blue Scope Steel Vietnam Company, we see the big potentials of the service

of total investment

in Education

•Assumed only 40% of roof area

with roof truss

of total investment

in Health &

Medical

•Assumed only 40% of roof area with roof truss

Government Offices

-•Construction investment is estimated at 20%

of total investment

in Military &

Government offices

•Assumed only 40% of roof area with roof truss

•Estimate that there

is 8.5kg of LWST

& battens per sqm

of tiled roof area

•Estimate that there

is 5.0kg of LWST

& battens per sqm

of Metal roof area

•Assumed 80% of residential roof is tiled roof & 20%

metal roof

628,000 4680

- 300,000 sq m of schools

- 3 floors per school

- 300 sq m roof area per school

- Only represents 70%

40% of Total market

-Applied investments for next 3 years :

- 10,000 sq m floor area in one

province

- 31 provinces in North and avg of 4 floors per building

- 10,000 x 31 / 4 = 77,500 sq m in 3 years

The Vision Pioneer Construction JS Company was established on May 30, 2005 with legal captital – 3 billions VND and shareholders as follows:

Thu Duc, HCM City

180,000

Dau, Binh Thanh, HCM City

90,000

Town, Vinh Cuu District, Dong Nai

30,000

With the function of the main business as design – making and installation of the Light Weight Steel Truss System Zincalume with the VISION TRUSS trademark, presently with the head office at 99 Dinh Bo Linh street, Ward 26, Binh Thanh

District, Hochiminh city, with the factory for production – processing in 972ndbrigade, Bien Hoa, Dong Nai

Although it has just appeared in Vietnam not fully 2 years but the Light Weight Steel Truss System VISION TRUSS has made the belief from the customers, through that VISION TRUSS has been used at hundreds of the big and small projects, stipulated such as Phuoc Lai – Bien Hoa Villa area, whole Vietnam – France Resort in Binh Thuan province, Ngoc Lan hotel in Da Lat, Dona Guest House – Villa Da Lat, ABC – South Saigon International School, Pho Quang Pagoda – Tan Binh district …

a Name of company: VISION PIONEER CONSTRUCTION J.S COMPANY

b Liaison name: Vision Pioneer Construction Joint Stock Company

c Business Registration No.: 4103003439

d Address of Head office: 99 Dinh Bo Linh street, Ward 26, Binh Thanh Dist., HCM City

e Tel.: 08 – 5111435 Fax: 08 – 5111376 Website: visiontruss.com

f Legal representative of the company: Mr Pham Thanh Phuong – Position: Director

To bring to the customers the solution in package of the outstanding truss and roof system for the construction project in Vietnam

- To orient for the customers about the concept from the use of the traditional mild steel roof truss and the reinforced concrete slope roof into the use of the Light Weight Steel Truss System

- To improve and develop the skill for processing as installation to the contractors and the subcontractors

- To supply in package for the truss system of the work, through that to bring back the benefits such as the convenience, to save the time and decrease the expense for general works

- To keep firmly the location No 2 at the market of the Light Weight Steel Truss System in Vietnam with the market share about 25%

The Vision Pioneer Construction J.S Company with the function for main business

as filling up the premise, construction of the traffic work, civil and industrial works, internal and external decoration, business of building materials and production, processing in installation of truss… in the scope of this topic we just

concentrate to research the field of the main business of the company as design – processing – installation of Light Weight Steel Truss System VISION TRUSS

Provisions from bad

inventories

Interest expense

In Vietnam after the 6th National Party Congress performed in 1986, the work for economic improvement was commenced with the policy for opening the economy, to change from the planned economy in the subsidized period into the market economy with the socialist orientation, after the first years with some difficulties, from 1992 to 1997 the world witnessed the explosion of the foreign investment and the flourishing of the economic components out the State-run, it is very matter to help the Vietnam economy in strong development with the speed

for enhancement of GDP in average from 8 – 10%/year The foreign investors at that period also recognized the importance and the strategic location of Vietnam

in the international market, besides that with the resource of petroleum that has just been found out in the East Ocean and a market for consumption with full potentials with nearly 80 million people together with the diligent, intelligent and skilful tradition of Vietnam labour that has attracted the international investors to participate strongly into Vietnam market

Although for the first step to get some results that are worthily encourage but the economic crisis of Asia in 1997 – 1999 has pulled the noticeable decrease of the local and international investment, besides that the law on investment of the countries in the region is also amended with more favors in comparison with the law on investment of Vietnam therefore in this period the economy of our country was affected seriously, for the result that the speed for enhancement of GDP only remains about 4.8% in 1999, this is the lowest level within 1 decade ago

With the effect of Vietnam government and the policy for economic improvement was issued after that, Vietnam has gradually got back the picture of a wonderful address to the investors in the world, especially from December 2001 when the Vietnam – US Commercial Agreement was signed, we have progressed for a long step in order to come the normalization with the economic powerful country No 1

in the world, this brings a big belief for the investors and Vietnam to be forecasted it will become a second China for economic construction and development with the speed for high development in the long term and the stable politic will support efficiently for the economic development For the result that

we escaped the difficult period with the economic enhancement about 7% in this

2002 and 2006 we have been arranged the second classification of the world for the speed of economic enhancement with 8.17%

Although such as that but the Vietnam government hasn’t ceased speeding up the process for improvement, and especially for the recent time the determination of Vietnam government in abolishment of the embezzlement that is a word for strong confirmation that we determine to make clear the leading machine in order

to quickly take our economy escaping the situation for delayed development and

to try for becoming a new industrial country in 2020

For successful organization of the 14th Asian Pacific Economies Conference (APEC) and became the 150th member of the World Trade Organization (WTO) that is more to confirm strongly that the Vietnam economy integrated fully with the world economy

In opposite to the time, for the years in the first of 21st century the improvement

of the investment environment for the private enterprise that is the first attention

of Vietnam government, in 2000 the Law for enterprise had the clear regulations for the legal demands for the establishment of the private companies in domestic, the law has simplified a lot of the procedures for registration in comparison with before, it is very matter to pull strongly the enhancement of the quantity of the medium and small enterprise in Vietnam For the result that even in the first year after the law was issued there is about 20,000 new enterprise established equal a half of enterprise established in the period 1990 – 2000 At present total enterprises register for operation about 200,000 and the target that the Vietnam government stipulated it should get 500,000 enterprises in 2010

For exclusion of tax in transfer of the profit to overseas is a point that is worthy to recognize in this period, this encourages the investors more through the enhancement indirectly to them, besides that the government also abrogated the regulations for automatic exchange of foreign current and to enhance the favors for the foreign investors and especially for the enterprises in the Industrial Park and Export Processing Zone This stipulates the confirmation of Vietnam to the importance of the economic region of the foreign investors with the development

of the economy

Besides that the equitization of the company has also performed strongly with the clearer policy for the foreign investors through the enhancement of the scale for possession of the shares in the State Owned Companies for equitization and besides that the government has also selected some companies with the foreign investment capital for pilot of the equitization

Although so effective but we have still had a lot of the legal regulations unclearly

to lead to the matter that the private and foreign investors to be caused the difficulty, with the unclear legislation regulations and the bureaucratic authorized machine for the poor result, the legislation and financing system is poor to lead to the initial expense high and it takes more waiting time of the investors It is very the said factors to lead the investment capital of the old project increased but to calculate generally of the attraction of the investment directly from overseas only gets about 50% in comparison with the target and plan that the government stipulated, due to a lot of objective and subjective causes for organization of