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Chapter 1050: Chapter 922: Seize the Opportunity (Subscribe please!)
Old Li was pleased.
But other people were mostly worried.
Long Jin then comforted them, "Let’s just wait and see, don’t be too pessimistic. The establishment of this company will impact our business, but it shouldn’t be significant. We have a cost advantage, so we definitely won’t be out of profit."
The others nodded slightly.
If competition in the high-end domain is unbeatable.
Then dominate the low end. This is also an unwritten rule for the survival of Huaxia companies. Even in developed Western countries, people are extremely sensitive to prices, not to mention in these underdeveloped African countries.
One of them then asked, "By the way, Long Jin, what is the credit limit of the commodity loans they offer? It can’t be unlimited, right?"
Long Jin smiled, "How could that be possible? The Mozambique government’s debt repayment capacity isn’t that great. I heard that the total amount of commodity loans is around five billion Asia Dollars for this year, and who knows about next year."
"Five billion? Wow, Finance University is generous. Their bank really has money."
The person exclaimed in amazement.
This money definitely needs to be funded in cold, hard cash to the manufacturing enterprises.
Tens of billions just to cover this, plus the previous thirty billion, totaling eighty billion.
Is this bank a printing factory or what?
Long Jin explained, "What’s so strange about that, you don’t know the operational model of the Myanmar Economic Zone. Most of the raw materials for thousands of manufacturing enterprises throughout the Myanmar Economic Zone are purchased by the Myanmar Bank Group.
You can imagine how strong their bargaining power is. Because of the large quantity and stable payment capability, these funds could even be on credit, some for a month, others for several months or even half a year.
Once manufacturing enterprises get the raw materials, they can produce. If a company has financial difficulties, they don’t need to pay Myanmar Bank in cash immediately, they can apply to pay after selling the products.
After exporting the products, all the foreign currency earned will first go into the accounts of the Myanmar Bank Group. After final calculations, all expenses for raw materials, taxes, and circulation costs are deducted, and the remaining part will then be transferred into the profit accounts of the businesses.
Do you know what this means?" At this point, Long Jin paused for effect.
"What?"
The others eagerly asked.
Long Jin said with emotion, "This means that enterprises in the Myanmar Economic Zone are almost under no financial pressure, and these companies can produce at nearly zero cost."
"Sss...zero cost?"
"No wonder, they are not restricted by payment terms. Not to mention fifty billion. For Myanmar Bank, which controls the supply of raw materials and taxation, even one hundred billion is no pressure."
"But what if they can’t sell the products?"
Long Jin reminded them, "Most of their production is based on orders; how could they not sell?"
"These companies have it too easy here; I want to go too."
Old Li said enviously.
"Heh, you guys shouldn’t even think about it. The companies here employ a filing system, and the number of each type of enterprise is limited. If you go there, you won’t have any quota, and it seems they have the intention of nurturing local business groups, and they are not very interested in foreign capital," Long Jin shook his head.
"This is basically a disguised planned economy," Old Li said disappointedly.
Long Jin spread his hands, "You don’t need to worry about that. The main drawbacks of a planned economy lie in the suppression of production motivation and innovation, and gradually people become complacent, but the Myanmar Economic Zone is different. 𝘯𝑜𝘷𝘱𝘶𝘣.𝘤𝘰𝑚
Their strategy is ’advanced manufacturing.’ Any product must be among the world’s best, and all enterprises must also undergo innovation and R&D funding evaluations. If they only depend on old achievement and policies, barely scraping by, their operating qualifications might be canceled the following year."
"This way... It’s terrifying."
It’s not scary if a thug doesn’t know anything.
It’s scary when a thug is educated.
The Myanmar Economic Zone is exactly like a thug acting sophisticatedly.
"Long Jin, how do you know so much?"
Old Li looked at Long Jin curiously, feeling as if overnight, he had become so knowledgeable about that place.
Long Jin chuckled, "A distant relative of mine works at the Myanmar Bank Group. He told me all this. He fled there during a famine. Previously, communication was difficult there, but now it’s easy. The whole family came back to recognize relatives, so we’ve been in touch ever since."
The others suddenly understood.
No wonder he knew so much about that place.
Old Li wondered, "Long Jin, you have connections. You could totally go there to do business."
"That’s what I thought too. I plan to liquidate my shop next month. My relative is very optimistic about the economic development there and has encouraged me to go into business there, although he can’t get a manufacturing index himself.
But the restrictions on the service industry aren’t so strict. I heard the tourism industry is booming there now. I plan to go look and listen to his advice, and it’s closer to home, even planes fly there now."
Long Jin had had enough of drifting in Africa.
He was only twenty-nine years old.
There was an opportunity.
Of course, it had to be seized.
"Congratulations."
"If there’s an opportunity, don’t forget us old friends."
"..."
Long Jin waved his hand, laughing, "It’s nothing, next time you come to play in the Myanmar Economic Zone, I’ll take care of everything. If you’re interested, you can also check out the business there, I heard it’s really good."
"Okay."
"Fine."
"No problem."
"..."
...
Myanmar Economic Zone.
When the product list was received.
The production of goods for this export project started, and an urgent order appeared in the order system of all the relevant businesses. Because of the recent surge in orders, usual orders were postponed.
But this one.
Was immediately prioritized, and urgent orders always had a special purpose, part of the priority production sequence yet not at the expense of displacing others’ orders, but without affecting the timely delivery of other contracts.
Allowed businesses to provide the fastest ’solution.’
"Manager, one thousand motorcycles, urgent."
"Urgent?"
"Yes, according to the brief, it’s for export to Mozambique, we need to create a user manual in Portuguese."
The manager recalled the news he had read a few days ago and nodded, "Okay, this must be the Mozambique goods export project that was discussed a few days ago, immediately produce a feedback form, and place an order with the printing factory while you’re at it."
Feedback Form.
A feature of all orders.
After receiving an order, businesses needed to create all the details regarding the production and transportation plan of the goods, and then file with the Group, to facilitate the control over the business’s operational efficiency and tax declaration.
Urgent order.
Required approval of your production plan and delivery timeline, if they found it unsatisfactory or too lengthy, a new plan had to be made, which was a characteristic of urgent orders.
The first time didn’t set a fixed delivery time.
It was more like asking ’how soon can you complete it?’ and then everyone would discuss the production plan.
Five minutes later.
The form was submitted.
Their plan was to deliver by the 20th of the following month.
Then.
Within a minute.
An email was received.
"Agreed."
Seeing the two characters in the order system, they breathed a sigh of relief; such urgent tasks were critical projects of the Myanmar Bank Group, which couldn’t be taken lightly, even the reply time was restricted.
"Adjust production according to the new plan," the manager ordered.
"Yes."
This scene.
Also occurred in over a hundred businesses within the Myanmar Economic Zone.
Overall.
Regarding this order.
They were all very cheerful.
Because such orders had very short payment terms, for them, the end customer was not the Mozambique government but the Myanmar Bank, and the moment they loaded the shipment on the ship, it was equivalent to getting paid.
