Construction Project of Research Center for Generic Drugs and Traditional Chinese Medicine in Honghe Area of China (Yunnan) Pilot Free Trade Zone

Name

中国（云南）自由贸易试验区红河片区仿制药及中药研究中心项目

Construction  Project of Research Center for Generic Drugs and Traditional Chinese Medicine in Honghe Area of China (Yunnan) Pilot Free Trade Zone

Industry Involved

Great health industry

Site

West Area, Honghe Area, Pilot Free Trade Zone

Project Description

In 2019, the Overall Plan for China (Yunnan) Pilot Free Trade Zone was printed and distributed in the Notice of the State Council on Printing and Distributing the Overall Plan for Six New Free Trade Zones. On August 30, 2019, Honghe Area of China (Yunnan) Pilot Free Trade Zone was formally put into operation. Honghe Area, located in the Hekou County, Honghe Prefecture, with a total land area of 14.12 km2, implements interactive development with Honghe Comprehensive Bonded Zone and Mengzi Economic & Technological Development Zone, and prioritizes the development of processing and trade, great health services, cross-border tourism, cross-border e-commerce and other industries to spare no effort to build an ASEAN-oriented processing and manufacturing base, a business logistics center and an innovative and cooperative demonstration zone in the China-Vietnam Economic Corridor.

The planting area of Chinese herbal medicines in Honghe Prefecture is over 1 million mu, ranking first in Yunnan. Relying on the industrial planning of Honghe Area in Pilot Free Trade Zone, the project effectively and comprehensively utilizes the rich medicinal plant resources and border development advantages of Honghe Prefecture to build a research and development pharmaceutical base of generic drugs and traditional Chinese medicine integrating R&D, production, packaging, logistics and marketing.

Content

Construction content: Generic drug R&D center, production and processing plant, crude processing plant and fine processing plant of traditional Chinese medicine, raw material warehouse, finished product warehouse, freezer, etc. will be built in the project by focusing on the research of generic drugs and traditional Chinese medicine.

Land area: The land area is 120mu, and the total floor area is 30,000m2.

Supporting Conditions

Hekou County, located at the southernmost point of Southwest China and southeast of Yunnan Province, is a national Class I open port. "Centennial commercial port and open Hekou" has the following characteristics:

Two rivers and one port: Hekou, named for its location at the intersection of the Red River and the Nanxi River, is a border city with tropical and subtropical scenery by virtue of its unique geographic location. It enjoys high temperature and humidity, rich mineral resources and biological resources, and the forest coverage of 47.3%. It is called "small animal kingdom" and "small plant kingdom".

Two countries and one city: Hekou County faces Lao Cai (Vietnam) across the Red River and the Nanxi River, with a total length of the border line of 193 km (including 73 km of river boundary and 120 km of land boundary). The Yunnan-Vietnam Railway Bridge, the Nanxihe Highway Bridge, the Honghe Highway Bridge, the Guliu Highway Bridge and the Xinpo Bridge in Vietnam are integrated, and the bridges are busy, connecting the port cities of the two countries. The special "geography" and "relationship" make the two cities on the China-Vietnam border form the unique port landscape of "city is port, port is city" and "two countries and one city".

Two ports and one zone: At present, Hekou has 2 national Class I ports, namely, railway port and highway port. Meanwhile, to further expand opening-up, since 2005, Hekou has boldly explored, actively practiced, and declared to build the China (Hekou) - Vietnam (Lao Cai) Cross-border Economic Cooperation Zone, striving to move towards a new frontier of opening-up.

Two cities and one belt: Hekou has been the second passage of the "Southern Silk Road" since ancient times. It is located at the "throat" of the Kunming-Hanoi-Haiphong Economic Corridor, 406 km north of Kunming City, the provincial capital, 260 km south of Hanoi, the capital of Vietnam, and 360 km north of Haiphong, the largest seaport in Vietnam. The "Centennial Yunnan-Vietnam Railway" and "centennial port opening to trade" make the merchants here gather, compete and prosper. The Mengzi-Hekou Railway (east line of the Trans-Asian Railway), the Kunming-Hekou Expressway and the Honghe Waterway pass through here to interconnect with Vietnam. Hekou has become a central hub for the international exchange of commodities, personnel, vehicles, capital and information in the Kunming-Hanoi-Haiphong Economic Corridor, and an important gateway for economic and cultural exchanges between China and Vietnam and Southeast Asian countries.

Integration of two cultures: The national port makes the local national culture and foreign culture meet, intersect and be compatible with the traditional Chinese culture here. Hekou is the sole Yao Autonomous County in Yunnan Province, inhabited by 24 ethnic minorities including Yao, Miao, Zhuang, Dai, Yi and Buyi. The Yao people's massive folk customs such as the "Panwang Festival" are full of charm. The ancient French architecture, Cantonese architecture, ancient fort and educated youth of agricultural reclamation tell the vicissitudes of the past. The beautiful costumes of all ethnic groups, tourists from all over the world, and a variety of exotic goods show their unique local customs, forming a unique border culture with colorful and harmonious Hekou.

Yunnan, located in the low latitude plateau region, has rich drug provenances, with 6,559 kinds of natural drug resources, accounting for 51% of the total in China. Honghe Prefecture has many kinds of Chinese herbal medicines, rich resources and wide planting area.

Investment Estimate and Fund Raising

Planned investment of the project: CNY 150 million;

Fund raising: Self-raising by enterprise.

Preferential Policies Applicable

Preferential policies in the province, prefecture and Honghe Area of Pilot Free Trade Zone are available for the project. Foreign workers can be recruited.

Market Prediction (Analysis)

The biomedical industry is one of the industries with the best growth and the most active development in recent years. As an important part of biopharmaceuticals, modern traditional Chinese medicine pharmaceuticals are integrated with green, environmental protection and health, and are in line with the public's pursuit of a healthy life. Combined with the rich advantages of plant medicine resources in Honghe Prefecture, the R&D and pharmaceutical projects of generic drugs and modern traditional Chinese medicine have broad prospects. Upon completion, it will promote the industry development of Chinese herbal medicines in Hekou County to realize the increase of farmers' income, enterprise development and mutual benefit.

Profit Model and Preliminary Benefit Analysis

Upon completion, the revenue will be obtained from sales and R&D of generic drugs and traditional Chinese medicine, and the output value after the target output is reached will be not less than CNY 600 million.

Risk Analysis

The safety, effectiveness and quality of traditional Chinese medicines and new drugs will be controlled.

Cooperation Pattern

Sole proprietorship and joint venture

Contact Information

Contact Unit: Management Committee of Honghe Area of China (Yunnan) Pilot Free Trade Zone

Contact Person: Tao Yingxian

Tel.: 13769309507

Fax: 0873-3069166

E-mail: 499692326@qq.com