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'Ideal and energetic investment destination'
By Feng Zhiwei and Zhang Ranran (China Daily)
Updated: 2009-05-20 08:12
Since the launch of the reform and opening-up policy 30 years ago, Hunan has developed into an ideal and energetic investment destination, said Zhou Qiang, governor of the central China's Hunan province, in a keynote speech at the opening ceremony of Investment Negotiation Week, a business fair held by Hunan in Hong Kong from May 18-22. Zhou said the five-day event is designed to introduce Hunan's huge economic potential, seek business partners and learn from Hong Kong's experience in a bid to create mutually beneficial cooperation. Closer ties
 Since CEPA - or Closer Economic Partnership Arrangement - began in 2004, ties between Hunan and Hong Kong have developed in wide-ranging and varied industrial sectors. Governor Zhou said that from 2004 to 2008, trade volume between the two areas increased to a total value of $3.8 billion, twice that of the previous 20 years. In the first quarter of this year - despite the impact of the global financial crisis - investment from Hong Kong in Hunan still reached $650 million, up 27 percent over the same period last year. How to embrace the challenges with confidence and strengthen cooperation during the ongoing global economic slowdown concerns both sides most. Hunan needs significant capital and advanced technology to continue laying the foundation for industrial development, while Hong Kong's abundant foreign exchange reserves, developed financial markets and superb investment capacity needs to further explore markets to support the island's economy. By integrating elements and resources, increasing service efficiency and strengthening their ability to fight the financial crisis, both sides can realize more rapid development. Increasing value Hunan's total output value and combined bank savings deposits in 2008 both exceeded 1 trillion yuan. The province's total output increased 13.1 percent in the first quarter compared to the same period of 2008. Its utilized foreign direct investment (FDI) rose by 22.5 percent in 2008, while investment from other provinces increased 16.9 percent. In the first quarter of this year, the usage of FDI increased 20.6 percent year-on-year.
 Commitment Through many government projects, Hunan will further strengthen cooperation with Hong Kong, especially in industrial development, financial creativity, market expansion, and infrastructure construction to enhance its ability to resist risks. To attract investment from Hong Kong, Macau and other international cities, the province will cooperate with global top 500 companies to attract high-quality professionals and learn advanced international management expertise. Hunan plans to increase infrastructure construction, industrial development, municipal and rural construction, its marketing system and social development to provide Hong Kong enterprises with more opportunities on the Chinese mainland. "It is a good chance for Hunan to upgrade and get industrial transfers from developed coastal areas as adjustment continues in the ongoing financial crisis," said Zhou. The governor said that a series of governmental policies and regulations put into practice last year encourages coastal industries to move to central and western regions. "This year, we are focused on setting down concrete regulations for those industrial transfers," Zhou said. With the advantage of a modern transport network, and abundant natural, scientific and educational resources, industrial clusters for mechanical engineering, steel and electric locomotives have already been developed in Hunan. In addition, 80 industrial parks have been established. A grouping of cities of that combines Changsha, Zhuzhou and Xiangtan has been approved as a national model base for hi-tech industries. By establishing four centers for industrial transfer - in Chenzhou, Yueyang, Yiyang and Yongzhou - Hunan will give priorities to the processing trade and outsourcing services. "In this Hong Kong Investment Negotiation Week, we are providing 203 provincial-level projects with a total investment of $35.8 billion," said Zhou. "We sincerely hope domestic and foreign investors will find opportunities in these projects and further deepen our cooperation."
Zhou said the province must spend more on infrastructure construction to improve the hardware for economic development, yet great importance must also be attached to improving government efficiency, the legal system and public services. Practical policies and rules will be formulated to facilitate the implementation of CEPA in Hunan. The governor said Hunan will do its best to take on industrial transfer from Hong Kong. It will also make special policies to accelerate the process of introducing Hong Kong's financial industry to Hunan. One measure is preferential policies that will be made to attract Hong Kong companies to invest in modern logistics in the province. The scope of duty-free imported products will also be enlarged, part of the province's commitment to an "open, fair, just, transparent and predictable investment environment for Hong Kong entrepreneurs", Zhou said. (China Daily 05/20/2009 page14) |
