Comprehensive Bonded Processing Project of Honghe Area in China (Yunnan) Pilot Free Trade Zone

Name

中国（云南）自由贸易试验区红河片区综合保税加工项目

Comprehensive Bonded Processing Project of Honghe Area in China (Yunnan) Pilot Free Trade Zone

Industry Involved

Processing and 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.

Taking advantage of the regional advantages of Honghe Area in Free Trade Zone, the project attracts all kinds of production and processing export enterprises to settle in, and carries out processing with incoming materials and processing with imported materials to realize the integration of export consolidation and import distribution items. Moreover, it undertakes the industrial transfer of high value-added processing trade enterprises in developed coastal areas, and attracts all kinds of enterprises to set up industrial bases to build a bonded production and processing base with high development level, complete functions, preferential policies and simple procedures in Honghe Area.

Content

Construction content: The project is planned to construct a comprehensive bonded service center, a production and processing plant, a logistics warehouse, a product exhibition and trading center and related supporting facilities, including 50,000m² of business rooms, 35,000m² of standard workshops and 150,000m² of storage rooms.

Land area: The land area is about 1,300 mu, and the floor area of Phase I development is 500,000 square meters.

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 1,228 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)

With the rapid construction and development of Honghe Area in China (Yunnan) Pilot Free Trade Zone, the establishment of China-ASEAN Free Trade Zone, and the further increase of policy support of the Central Committee of the CPC and the State Council for border areas and border economic development zones, Honghe Area, with its highlighted regional advantages, will gradually form a radiation center towards South Asia and Southeast Asia, a processing and manufacturing base and a trade logistics center for international capacity cooperation with Vietnam and ASEAN countries. Its bonded processing projects have good market prospects.

Profit Model and Preliminary Benefit Analysis

After the completion of the project, it will develop in conjunction with the highway-railway intermodal logistics park and the cold chain logistics park, so as to promote the faster development of the export-oriented economy in Hekou and bring positive economic and social benefits into play.

Risk Analysis

The project may face certain risks in terms of policy, market, interest rate, and operation, etc. The enterprises shall take corresponding preventive measures.

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