Comprehensive Utilization Project of Natural Rubber 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天然橡胶综合利用项目

Comprehensive Utilization Project of Natural Rubber in Honghe Area of China (Yunnan) Pilot Free Trade Zone

Industry Involved

Processing trade 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 natural rubber in Hekou County is more than 150,000mu, and that in neighboring counties is about 600,000mu. About 300,000t of natural rubber is imported into China from neighboring Vietnam every year. By making full use of the advantages of raw materials and logistics of fresh latex in Hekou, the project strengthens the processing and application of natural latex, and introduces well-known latex product manufacturers at home and abroad, mainly producing latex mattresses, latex pillows, latex gloves, concentrated latex and other latex deep processing products, to achieve zero breakthrough in green ecological home latex products and build itself into a first-class ecological latex product production base in China.

Content

Construction content: The project will introduce advanced latex product production facilities and equipment, construct a product production and processing workshop, a product research and development center, a commodity storage warehouse, a quality inspection center and other supporting facilities, and produce 10,000 tons/year of concentrated latex, 70,000 beds/year of latex mattresses, 500,000 latex pillows per year, 50 million pairs/year of latex gloves, etc.

Land area: about 200mu.

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". It is suitable for developing tropical cash crops such as bananas and rubber, and is one of the main tropical fruit and rubber producing areas in Yunnan Province.

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.

Investment Estimate and Fund Raising

Planned investment of the project: CNY 600 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.

Market Prediction (Analysis)

Vietnam near Hekou County is rich in natural rubber, with about 300,000t natural rubber imported into China every year, but most of the natural rubber is transported to Qingdao and other places by sea. Moreover, China still imposes a tariff of 5% on Vietnam's natural rubber compound. The market of the project is less affected by imported products, and it has strong market competitiveness. The provincial Party committee and the provincial government not only formally listed the rubber industry in the integration scope of the top 10 industries in the province, but also included it in the list of biological innovation projects in Yunnan Province, and implemented it as an important project of a strong green economy province. The Overall Plan for China (Yunnan) Pilot Free Trade Zone proposes to support the establishment of a reserve base for rubber, beef and other bulk products in Honghe Area. The implementation of the Implementation Plan for Supporting the Development of Rubber Industry in Yunnan Province will provide an unprecedented development environment and opportunities for the development of intensive processing of rubber.

Profit Model and Preliminary Benefit Analysis

Upon completion, the revenue will be mainly obtained from the sales of latex products. It is estimated that the output value will be about CNY 1.2 billion. The static payback period (including construction period and industry average) is 6.08 years. With the continuous maturity of the project, the output value will continue to grow.

Risk Analysis

The project conforms to the national industrial policy, meets the needs of industry development in Honghe Area, and has less investment risk.

Cooperation Pattern

Sole proprietorship

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