Special report: Report backs Foshan as prime spot for investors

Foshan has been singled out as one of the best cities for foreign investment, according to an independent report. The city, the third largest manufacturing center in the Pearl Delta region, won the accolade in a newly published report by the China-Britain Business Council.

Entitled: "Opportunities for UK Businesses in China's Regional Cities", the report provides a detailed analysis of investment opportunities in 35 of China's regional cities. The document, originally intended as a guide for UK companies looking to find suitable business partners in China, offers an authoritative snapshot as to which Chinese cities are now providing the most appealing economic environment for foreign investors.

Investment opportunity

Welcoming the findings of the report, Zhang Jianhui, general-director of the Foshan Foreign Trade and Economic Cooperation Bureau, said: "Since China's reform and opening-up, Foshan has become one of the most important modernized industrial bases and one that is much favored by large foreign enterprises."

Long well-known for the strength of its traditional industries, including ceramics, textiles and nonferrous metals, the city has now built on this appeal and begun to attract blue-chip companies from many of the world's leading economies.

Endorsed by global giants

According to Zhang, Foshan has already attracted an impressive raft of international businesses, many of which have made a long term commitment to the city, including:

United States-based Invista, a world leader in artificial fibers and polymers and the owner of Lycra, the elasticated clothing brand, has opened a spandex manufacturing facility in Foshan.

Anheuser-Busch, the global US-based brewing conglomerate, has invested in a $63 million production facility in the city's Sanshui district. The brewery is expected to yield 2.6 million hectoliters of beer annually in stage one of its development, with a further expansion in capacity already planned.

Taiwan-based Chimei Optoelectronics has launched a $480 million project aimed at developing Thin Film Transistor Liquid Crystal Display technology in the city.

Red Bull, a world giant in the energy drink's market, has recently announced plans to build a production base in Foshan later this year.

Other global companies with a base in Foshan include: Toyota; Honda; Wal-Mart; HSBC; Kohler (a world leader in bathroom and kitchen fixtures); Tyco Electronics (a leader in electronic components, network solutions and systems); Outlets (the international retail chain) and AIG (the global life insurance provider).

In total, more than 7,000 foreign-backed projects have now been established in Foshan - taking total foreign investment in the city to well past the $20 billion mark.

Commenting on this landmark figure, Zhang said: "This rapid increase in foreign capital is a direct result of the continuous improvement of Foshan's investment environment."

Investment environment

Foshan's unique geographical advantages, its attractive business climate and comparatively low cost of living, as well as its long-established industrial base, have all been prime factors in its success in attracting foreign investment. The city also has a well-developed infrastructure, effective government services, rich human resources and huge domestic market potential.

Set just 20km from Guangzhou, the provincial capital of Guangdong, Foshan is in easy reach of the region's three main transport hubs - Guangzhou Baiyun International Airport, Guangzhou Nansha Port and Guangzhou Railway Station. Work is also already underway on the Guangzhou-Foshan Subway, expected to come on-line with the next 24 months.

The city's reputation for high standards of living stems partly from its internationally-renowned cuisine and partly from its investment in healthcare facilities. The city now has more than 70 multi-star rated hotels, as well as eight golf courses and state-of-the-art fitness centers. It also has a growing number of international standard hospital and healthcare facilities.

Significant industrial base

Foshan is the third-largest economy by GDP in the Pearl River Delta region, after Dongguan and Shenzen. It is quickly gaining on its two neighbors due to its lower cost advantages.

Following many years of tactical development, Foshan has emerged as a key manufacturing base, both within China and globally. It has developed particular strengths in ten specific sectors - household appliances, industrial equipment, metal processing and products, ceramics, textile and garment manufacture, electronic information provision, food and beverages, plastic products, refined chemicals pharmaceutical products, and household goods.

According to Zhang, Foshan's industrial development remains relatively stable, despite the impact the global financial crisis has had in other cities and regions.

He said: "We look forward to welcoming more and more companies into Foshan. I believe there is a mutual benefit for the city and foreign investors in working together. It is a true 'win-win' situation."

(China Daily 03/23/2009 page1)