Construction Project of Public Overseas Warehouse and Operation Center 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公共海外仓及运营中心建设项目

Construction Project of Public Overseas Warehouse and Operation Center in Honghe Area of China (Yunnan) Pilot Free Trade Zone

Industry Involved

Modern logistics industry

Site

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.

Relying on the border and port advantages of Hekou, the project unites large cross-border e-commerce enterprises in China, constructs a public overseas warehouse and operation center, establishes an overseas commodity storage center, imports overseas commodities in batches, delivers commodities according to the needs of e-commerce, saves the commodity delivery time, and realizes localized sales of foreign commodities to build a first-class domestic cross-border e-commerce overseas commodity supply base.

Content

Construction content: The project is planned to construct an operation center, a cross-border e-commerce trading zone, an intelligent logistics distribution platform, public overseas warehouses (including general warehouses and frozen warehouses), and related supporting facilities. The operation center covers an area of about 10mu and a floor area of about 15,000m2.

Land area: The public overseas warehouse covers an area of about 125mu and a floor area of 80,000 m2.

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.

Investment Estimate and Fund Raising

Planned investment of the project: CNY 258 million;

Fund raising: all investment invitation and 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)

In 2018, the import and export turnover of China's cross-border e-commerce retail sales reached a new level. According to the data of the General Administration of Customs, in 2018, the total amount of import and export commodities inspected and released through the system by the national customs was CNY 134.7 billion, with a year-on-year growth of 50%. The amount of export commodities was CNY 56.12 billion, with a growth of 67%. The amount of import commodities was CNY 78.58 billion, with a growth of 39.8%, and both import and export commodities maintained rapid growth. It can be seen that China's cross-border e-commerce industry has great development potential and broad market prospects. Promoting the construction of the public overseas warehouse is conducive to promoting the development of cross-border e-commerce in Honghe Area and enhancing the comprehensive competitiveness of cross-border e-commerce.

Profit Model and Preliminary Benefit Analysis

Upon completion, the revenue will be obtained from overseas product warehouse management, logistics transportation, and e-commerce operation. It is estimated that the annual main business income will be about CNY 800 million. With the development of cross-border e-commerce in China, the turnover will continue to grow.

Risk Analysis

The project risk mainly shows the change in the domestic consumers' demand for overseas goods and the sales forecast of overseas products. It will affect the import scale of overseas goods to a certain extent.

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