Henan's advantages go hand in hand with development

As the Central Plains Economic Zone is an important part of the nation's 12th Five-Year Plan (2011-2015), Henan province sees unprecedented opportunities for business and development, a senior local official said.

As the cradle of Chinese culture, Henan has a long tradition of business activity and is again fostering a business-friendly atmosphere, according to Shi Jichun, vice-governor of the province.

To meet the central government's goal of forging a strong Central Plains Economic Zone, which mainly consists of Henan and its neighboring regions, Henan is reforming its economic and development model.

The central plains region has historically been a key area for the nation, even more so now because of growing economic connections and modern transport networks.

After years of rapid development, Henan ranks among the top provinces in terms of economy and emerging industries.

In 2010, the gross domestic product of the province was 2,290 billion yuan ($358 billion), the fifth highest of all China's provinces, and the industrial added value in the province hit 1,100 billion yuan.

"A complete industrial system has been formed in Henan," Shi said.

Henan has a competitive edge in industries such as food, textiles, nonferrous metals, coal processing and petrochemicals. Meanwhile, industries like electronic products, new materials, bio-pharmacy and modern services are developing well, Shi said.

There is tremendous potential for growth in Henan, which enjoys advantages in location, market, infrastructure, energy, human resources as well as food supply and cultural relics, he said.

"With a huge population, Henan is rich in human resources and this will keep labor costs for manufacturing low," Shi said, adding other costs would also be much lower in Henan compared with developed regions.

Henan has a good transport system with three first-category ports and its comprehensive network of railways, highways and airlines, the capital, Zhengzhou, is a transport hub and national logistics center.

The free trade zone in Zhengzhou, established in 2010, is unique in Central China and is creating the conditions for an export-oriented economy.

As well, there are 11 national-level development zones and 180 industrial clusters in the province.

"Henan has entered a stage of fast urbanization and industrialization," Shi said, adding that with all these advantages, the province has positioned itself to house more industrial transfers.

"The market potential is huge," Shi said. "Henan is already a hot spot for investment."

So far, 68 of the Fortune Global 500 and 128 of China's top 500 companies have opened offices in Henan, and it has signed cooperation agreements with 50 State-owned enterprises.

Several renowned enterprises, including Foxconn, one of the world's largest electronics manufacturers, have recently opened factories in Henan.

According to Shi, the National Development and Reform Commission and other relevant departments are working on a plan to further develop the Central Plains, which will include more favorable investment policies.

"We'll continue to provide first-rate services and create a preferable investment environment," Shi said. "I am confident that through cooperation, we can produce benefits for investors and develop hand in hand with them."

During the 15th China International Fair for Investment and Trade in Xiamen, Henan will host a forum on its potential for investments and promote its own cutting-edge industries.