Reborn, back to a small county town to become a wealthy family

Chapter 799 Hesitation

"Old Wu, are you aware of this?"

Fu Bin immediately looked at Wu Siyuan: "Such a large investment project must be making headlines on major portal websites, right?"

"I heard about this investment project during my inspection in Zhengzhou."

Wu Siyuan reported truthfully: "But it wasn't considered as meticulously as President Luo's approach. It was just treated as a relatively important project, like how our Shanghai introduced Tesla. Even if it's valued, it won't affect other investment projects."

How can they be the same?

It's worth noting that Henan Province's total fiscal revenue last year was only around 300 billion yuan, comparable to that of Shanghai (excluding customs and other collections; if these were included, Shanghai's fiscal revenue that year would have exceeded 1.3 trillion yuan).

Specifically in Zhengzhou, the local fiscal revenue that year was less than 60 billion yuan, which was only one-fifth of that of Shanghai.

The numbers look substantial, but these revenues are all budgeted and insufficient, requiring subsidies from higher levels every year.

More importantly, Zhengzhou offered extremely favorable policies to attract Foxconn.

For example, there are preferential tax policies. When Foxconn settled in Zhengzhou, Zhengzhou offered a policy of exempting corporate tax and value-added tax for the first five years after production started, and halving the tax for the following five years.

There are also reports that Foxconn hopes to retain approximately RMB 50 billion in promised subsidies, which includes tax breaks and other benefits.

In addition, employees of Foxconn in Zhengzhou can enjoy certain subsidy policies.

According to news reports Luo Yang saw on a portal website, the Henan provincial government had provided a subsidy of 200 yuan per month to each new Foxconn worker through a labor agency. There were also reports that Foxconn, in negotiations with the Zhengzhou municipal government, demanded that Zhengzhou fulfill its previous commitment to provide the company with approximately 20 billion yuan in investment subsidies.

In addition, the biggest preferential policies are support for land and infrastructure construction.

Zhengzhou provided Foxconn with ample land resources and gave strong support in infrastructure construction, including the local government being responsible for land acquisition and demolition for the project, and ensuring that the project was "three connections and one leveling" (road access, electricity access, water access, and land leveling) before construction.

In addition, the land prices offered are extremely favorable, far lower than the average price of industrial land offered during the same period.

These subsidies all have to be paid for by Zhengzhou's local fiscal revenue. With the local fiscal revenue already insufficient, the local fiscal situation will be even more strained when so many subsidies are provided.

Therefore, in the past two years, if a project is not particularly large enough to attract the attention of the municipal or even provincial government, it can only enjoy normal investment promotion policies. As for subsidies, forget about it.

"According to what you're saying, it seems that now is indeed not a good time to invest in Zhengzhou."

Fu Bin nodded in agreement and said, "But the company is currently in a period of rapid expansion. If we suddenly stop developing the market in the Central Plains region, Guotai will not be able to find a suitable investment area in a short period of time. This will disrupt the company's development pace. Brother Luo, can you give me some advice?"

Luo Yang had previously advised Fu Bin to postpone his entry into Sichuan, but now he's telling him that Henan province isn't a suitable destination for him in the coming years either.
Cathay Pacific can't just stop and wait, can it?

It's worth noting that there's another domestic company, China Fortune Land Development, operating on a similar model and expanding rapidly.

"I remember last time I mentioned trying to get closer to someone higher up. Is there any progress now?"

Luo Yang didn't reply to Fu Bin directly, but suddenly changed the subject and asked about something else: "I remember I helped you get in touch with Han Dongming before you went abroad. He has a lot of influence in the capital. Have you heard anything about the connection yet?"

Fu Bin first frowned slightly, then looked at Luo Yang thoughtfully.

Based on his understanding of this younger brother, he knew that these words were definitely not a deliberate attempt to change the subject, but rather related to what he had wanted to ask earlier.

"We've already made contact."

Fu Bin replied truthfully: "Shortly after you left the country, I flew to the capital and, accompanied by President Han, met and talked with a leader from the China International Development Cooperation Agency (a vice-ministerial level department jointly established by the Ministry of Foreign Affairs and the Ministry of Commerce, responsible for domestic foreign aid and development)."

In reality, this matter was not as easy as Luo Yang imagined. After all, it involved representing the national level in providing aid and investment abroad, and not just any company could qualify for this.

"Although the company has already invested in two projects in Hefei and Jiangcheng, from the perspective of higher authorities, the scale is still a bit small."

As Fu Bin explained, he sighed, "That's precisely why I rushed to send people to Henan Province to investigate, hoping to finalize another investment within two or three months. Plus, the project in Yang City that's still unfinished might barely catch the eye of the China International Development Cooperation Agency."

"Brother, if you ask me, you might be working in the wrong direction."

Luo Yang shook his head and said, "Let alone three and a half projects, even if we double that, this scale still won't catch the eye of the higher-ups."

"what?"

Fu Bin was stunned: "If we don't look at the scale, what should we look at? The business model?"

"Actually, this answer can be derived by working backwards."

As Luo Yang spoke, he pulled his arm away from Guo Yi's and reached for the cigar box on the glass coffee table.

Guo Yi couldn't let Luo Yang do it himself, so she quickly took over the job.

"Suppose our country were to provide aid to build a small industrial park in an African country, what do you think would be the most important things?"

With his hands free, Luo Yang picked up his glass, took a sip of champagne to moisten his throat, and then continued to ask, "The money is definitely coming from the national level. What's left is the construction of this small industrial park. Brother, do you think such a project requires a lot of resources?"

"Overseas construction experience?"

Just as Fu Bin was deep in thought, Wu Siyuan quickly answered, "I've heard that some areas in Africa are quite chaotic, so the construction company needs to have the ability to ensure safety during the construction process?"

“What Mr. Wu said is all relevant.”

Luo Yang nodded and said, "But the most crucial factor hasn't been mentioned."

At this point, he added a point: "In terms of capabilities, any of the state-owned construction companies could handle this, so why would the leaders of the International Development Agency be willing to contact you?"

Wu Siyuan also fell into deep thought.

The cigar bar fell silent immediately.

"Brother, just tell me the answer directly."

Several minutes later, Fu Bin still couldn't come up with an answer, and could only look at Luo Yang with a wry smile: "Brother, I'm completely clueless about this area. I really can't figure it out. Right now, it feels like a hundred mice are scratching my head."

“Apart from mineral resources, Africa is not suitable for investing in heavy industry projects.” Since Fu Bin had said so, Luo Yang didn’t keep him in suspense any longer and directly revealed the answer: “Therefore, the companies that move into those industrial zones can only be light industries, and they are labor-intensive light industries. In addition, from the perspective of Africa’s geographical location, especially North Africa, it is only separated from Europe by the Mediterranean Sea, making it much more convenient and cost-effective to transport goods to Europe than to China.”

When Luo Yang finished speaking, Fu Bin and Wu Siyuan's eyes suddenly lit up.

That's how some things are; when you have no clue, you can't figure it out no matter how hard you try, but after someone gives you a hint, you suddenly understand.

"I probably know."

Fu Bin, no longer frowning, looked at Luo Yang excitedly and said, "What the higher-ups value is the capability of the companies we attract under this model. Ideally, these companies should be foreign trade enterprises that can produce goods for export to Europe. Only such companies can be profitable, and only profitable companies can survive and expand in the long term. At the same time, this ensures that the industrial zones built with national aid don't become unfinished projects, thus affecting the reputation of the country's foreign aid."

Anyone who can become the owner of a company worth tens of billions must be highly capable.

Luo Yang started the discussion, and Fu Bin then explained the subsequent analysis clearly.

"Aren't there many companies like this along the coast of Jiangsu and Zhejiang?"

Wu Siyuan also opened up his mind: "Especially people from Zhejiang Province, they are bolder in this regard. As long as they can really make money, they will be very willing to invest and build factories in Africa."

"Of course."

Fu Bin's voice was already tinged with laughter as he spoke: "The infrastructure construction and the 'three connections and one leveling' projects in the development zone were all funded by the International Development Agency. Companies that are willing to invest in Africa only need to purchase equipment and train workers. The actual investment cost may be much lower than in China."

"Brother, you're right."

Luo Yang jokingly added, "Even without government subsidies, land in Africa probably wouldn't be worth much!"

"Hahaha"

After he said that, everyone in the cigar bar laughed.

As everyone knows, residential land in Shanghai now costs tens of millions of yuan per mu, and industrial land costs millions of yuan per mu. Land and infrastructure costs are a major part of the cost of investing in a company.

Now that Africa has eliminated this part entirely, how can the investment cost not be low?

Upon closer examination, it has great potential.

After the laughter subsided, Guo Yi finished preparing a cigar and handed it to Luo Yang.

Fu Bin's task was naturally handled by his assistant; the assistant certainly had that much sense.
"Moreover, you can conduct targeted screening when negotiating investment opportunities."

Luo Yang was sitting sideways with his legs crossed, one hand resting on the back of the sofa, enjoying the beautiful woman's service of lighting his cigar.

He smiled and said, "Some of the goods that our country exports to Europe and the United States are of excellent quality and low price, so they are often subject to export quota restrictions. Although this move is a bit underhanded, it has really made some domestic export companies suffer. Brother, you can imagine if we transferred some of the production capacity of these companies to Africa and exported them to Europe from there. I believe they would be more than happy to do so."

Brother Luo

After hearing Luo Yang's words, Fu Bin and the others were speechless, their mouths agape.

This lasted for about half a minute. Then Fu Bin leaned over to the glass coffee table, poured himself a full glass of Chivas Regal, picked it up and gestured to Luo Yang, saying, "No need for thanks, brother, I'll drink this first!"

After saying that, he cleanly and neatly downed the drink in his glass, and even turned the glass over to show that not a drop was left.

"Brother, let's not talk about the construction project in Jinling. Whatever you say, Guotai will cooperate."

After putting down his wine glass, Fu Bin solemnly stated, "Furthermore, wherever your industrial park opens in the future, our Guotai Construction will follow without hesitation!"

Gee.
Luo Yang was immediately a little depressed.

It now seems that construction management is a job that construction companies do, and most real estate development companies would disdain to do it.

However, ten years later, developers have become eager to undertake such construction projects, especially those with smooth payment processes. Developers are even willing to advance funds to complete these projects.

Whether Fu Bin helped Luo Yang or Luo Yang provided Fu Bin with a way out for the future is now somewhat unclear.

But he couldn't explain it at the moment.

Only alcohol is allowed.

The atmosphere in the private room immediately became lively.

After drinking two more glasses, Guo Yi's cheeks became even more radiant. She seemed to be a little overwhelmed by the alcohol, and half of her body leaned limply against Luo Yang's chest.

She had heard the entire conversation and was deeply shocked.

Fu Bin, who was willing to give her business on their first meeting, was clearly the owner of a local real estate company in Shanghai. Moreover, he owned more than one urban real estate development company, and he should also have an industrial real estate development company called Guotai. He had already set up several projects in China and was going to cooperate with the International Development Agency to expand his business to Africa.

As for the young man he was leaning on, he was even more mysterious.

Although it's not clear what he's doing exactly, from what I've learned in the past two hours, I know he plans to invest in an industrial park in Jinling, Jiangsu Province, which is related to the manufacturing of new energy vehicles.

She's not a novice; she's a partner at an auditing firm and has considerable experience.

This involves the new energy vehicle manufacturing industry, and investments in such projects often start at tens of billions of yuan!
Is this Luo Yang some kind of super-rich second-generation heir?
Her heart pounded at the thought of it.

Guo Yi couldn't help but feel fortunate, because tonight was her first time visiting this Jiangnan Business Club.

She was dragged here by a close friend, and she hesitated before coming because she knew her friend's thoughts very well.

Realistically speaking, Guo Yi's best friend is a regular at several high-end business clubs, and her biggest wish is to find a powerful patron. Guo Yi's idea, on the other hand, is to use these business clubs to meet more business owners, expand her social circle, and ultimately bring in more business for the auditing firm.
If I had hesitated even a fraction of a second longer tonight, I wouldn't have encountered such a miraculous opportunity.

She was now certain of one thing: Luo Yang would definitely offer her business opportunities. As for President Fu's company, she was certain she would get business there, no matter how big or small.

Guo Yi, however, hesitated.

Should I learn from my best friend?
(End of this chapter)