Tropical Fruit Intensive Processing Project in Dehong Area of China (Yunnan) Pilot Free Trade Zone

Name

中国（云南）自由贸易试验区德宏片区热带水果精深加工项目

Tropical Fruit  Intensive Processing Project in Dehong Area of China (Yunnan) Pilot Free Trade Zone

Industry Involved

Food manufacturing industry

Site

International Import and Export Bio-industrial Park in Wanding, Ruili, Dehong Prefecture

Project Description

Myanmar and Ruili have superior natural conditions and are very suitable for tropical fruit growth. Based on the advantages of abundant raw materials around Ruili, market advantages in South Asia and Southeast Asia, and low labor cost, the project is planned to build a fruit intensive processing project in Wanding International Import and Export Bio-industrial Park in Ruili City, focusing on the intensive processing of canned tropical fruits, fruit drinks and other products. It has a good market prospect.

Content

Land area: proposed area of 70 mu.

Construction period: 1 year

Construction scale: The main construction contents include standard workshops, cold chain distribution system of canned food and juice production lines and other supporting facilities.

Supporting Conditions

1. Located at the intersection of China Economic Circle, South Asia Economic Circle and ASEAN Economic Circle, Ruili is an important hub and node for China to implement "the Belt and Road Initiative", promote the construction of Bangladesh-China-India-Myanmar Economic Corridor and serve as the radiation center for South Asia and Southeast Asia.

2. Ruili has a warm humid subtropical monsoon climate, with no severe cold in winter and no intense heat in summer. It has sufficient sunshine and abundant rainfall. In 2018, the Port of Wanding achieved a total import and export trade of CNY 19.22 billion, with 1.87 million tons of inbound and outbound goods, of which only the total import volume of various tropical fruits reached more than 800,000 tons. There is a mature and large-scale trading market for imported fruits in the project area.

3. Wanding is adjacent to Muse and other cities in Myanmar, with one national Class I port, two entry and exit passages, one national border economic cooperation zone and one provincial bio-industrial park.

4. Dehong Free Trade Zone is located in the main urban area of Ruili City, which is the core and key area of economic development in Ruili City in the future. In the future, with the continuous integration of many industries and the continuous reduction of trade barriers, the trade volume will definitely increase. The construction of the Free Trade Zone not only injects new vitality into the economic development of Ruili, but also creates more convenient conditions for enterprises to "go global".

5. Wanding International Import and Export Bio-industrial Park has obvious location advantages and convenient transportation. A variety of preferential policies, such as the policies for the National Western Development, Ruili Key Development and Opening Experimental Zone, and national characteristic towns, are superimposed in the area. The total planned area is 4,195.05 mu, and the net land area is about 3,000 mu. The park guarantees the timeliness and safety of electricity, water and road use of the project. The final land for project use will meet the requirements of "seven availabilities and one leveling" (namely, the followings are available: road, electricity, communication, water supply, water drainage, gas and heat, and land leveling).

Investment Estimate and Fund Raising

The total investment is CNY 120 million, including CNY 50 million raised by enterprises, CNY 50 million raised by financial institutions and CNY 20 million from other funds.

Preferential Policies Applicable

National and provincial preferential policies: Opinions of the Central Committee of the Communist Party of China and the State Council on Deeply Implementing the Western Development Strategy; Policies of the People’s Government of Yunnan Province on Accelerating the Construction of Ruili National Key Development and Opening-up Experimental Zone; Notice of Ruili City People's Government on Printing and Distributing Preferential Policies for Investment Promotion in Ruili City. The project, after meeting the relevant standards of documents, can enjoy the policies such as: "One Discussion over Each Matter"; in terms of tax, “five-year free and five-year half” (i.e., "from the profit-making year, the enterprise income tax will be exemptible for the next first five years and half rate reduction for the next subsequent five years."), "three-year free and two-year half" (i.e., from the profit-making year, the enterprise income tax will be exemptible for the next first three years and half rate reduction for the next subsequent two years.), and deduction from personal income tax for senior executives; fund subsidy for standard workshop construction.

Market Prediction (Analysis)

With the development of China's economy and the continuous improvement of residents' living standard, household expenditure on fruit products will continue to increase. Relevant institutions predict that the market size of China's fruit industry will continue to grow in the future, reaching about CNY 2,746.01 billion by 2025.

Profit Model and Preliminary Benefit Analysis

Social benefit: It can give full play to the advantages of overseas raw materials resources and the geographical advantages of domestic ports, increase the added value of imported fruits, promote industrial transformation and upgrading, increase local taxes and promote employment. Expanding the markets in South Asia and Southeast Asia is of great significance to promoting trade between China and Myanmar.

Economic benefit: The project mainly gains revenue from the sale of deep-processed tropical fruit products. The annual net profit after target output is reached is about CNY 20 million. Without considering tax refunds, the project will have a payback period of about 6 years after completion, and the return on investment will reach 16.7%.

Risk Analysis

The production and domestic sewage will be uniformly discharged into the sewage pipe network of the park after being treated by the enterprise itself to reach the Class I Standard. The scientific greening will be implemented. Also, during the operation period of the project, the production waste will be treated specially.

Cooperation Pattern

Joint venture, cooperation, equity participation, PPP, etc.

Contact Information

Contact Unit: Investment Promotion Bureau of Ruili City

Contact Person : Yao Chenghu

Tel.: 13988252077

Fax: 0692 -4141253