Industrial Construction Project of Mengkang Area of Jiangcheng Border Trade Processing Industrial Park

Project Name

江城边境贸易加工工业园区勐康片区产业建设项目

Industrial Construction Project of Mengkang Area of Jiangcheng Border Trade Processing Industrial Park

Project

Industry

Processing and Manufacturing

Project Site

Mengkang Area, Industrial Park of Jiangcheng County

Project Overview

The Mengkang Area of Jiangcheng Border Trading and Processing Industrial Park is located on the hub route of the implementation of the national "Belt and Road Initiative (BRI)" and it is the main battlefield for the opening-up and development of the border of Pu'er City. After the highway is completed and the international road port for passenger and cargo transport of Mengkang is open wider to the outside world, the unique advantages of the Mengkang Area will be highlighted. This project will rely on such characteristic resources as cattle, Mandarin orange, nuts, tea, and coffee in Jiangcheng County to build a comprehensive park integrating the comprehensive processing in border trade, comprehensive services of border trade, food processing, warehouse logistics, mechanical and electrical assembly, furniture manufacturing, biological industry, and animal quarantine and establish a processing and manufacturing base of Pu'er City for important trade products facing South Asia and Southeast Asia.

Project Construction Content

Construction Scale: The project plans to set up a characteristic agricultural product processing and production line, and build a characteristic biological R&D center, an assembly center of production goods and daily-use articles, a comprehensive office area, and a cross-border animal quarantine center.

Construction Duration: 2020-2030.

Land Area: a total planned area of about 4,000 mu.

Supporting Conditions

1. Project Advantages and Opportunities:

Jiangcheng County borders Vietnam and Laos, with a boundary line of 183 km. The international road port for passenger and cargo transport of Mengkang is located at the No.7 boundary marker on the China-Laos border. It is an important window and frontline for China's openness to Laos, the significant starting point of the north-south passage connecting and covering 11 provinces and 1 municipality of Laos, and the most convenient land passage from Yunnan Province to Laos, South Asia, and Southeast Asia. The distance traveled from Kunming to Mojiang and then to Mengkang Port to go overseas is 222 km shorter than that from Kunming to Pu'er and then to Mohan Port.

2. Associated Industries:

Jiangcheng boasts multiple varieties of mineral resources, which are of great exploitation value. Baozang Town in the county has the only ancient soluble potassic salt ore deposit in China, with an explored potassium chloride reserve of more than 20 million tons, and a rock salt reserve of 2.23 billion tons. In addition, there are also other metallic ores and non-metallic ores like copper, lead, tungsten, zinc, coal, gypsum, limestone, and asbestos.

Biodiversity guarantees a stable supply of various raw materials for product processing. The main crops of Jiangcheng County are rice, maize, tea, banana, sugar cane, rubber, coffee, and herbs south to the Yangtze River; Jiangcheng County registered the geographical indication certification mark of "Jiang Cheng Yellow Cattle"; Jiangcheng's brand of "Macadamia Nut" was chosen among the top ten famous products of Yunnan Province and was selected into the list of "Regional Public Agricultural Brands of 2019 of the Catalogue of Chinese Agricultural Brands"; six fish products of Yingpanshan Breeding Demonstration Base obtained the National A-level Standard Certification for Green Food.

Rich resources in Southeast Asia lay the foundation for the import of raw materials. Located in tropical and subtropical monsoon climate zones, Southeast Asia enjoys good heat and light conditions and boasts a high forest vegetation coverage rate. With great advantages for agricultural development, Southeast Asia produces various kinds of products such as rice and fruits and has planted economic forests on a large scale that are dominated by rubber. With the rise of overseas crop cultivation in recent years, some products (rubber, vegetables, fruits, etc.) can be grown overseas and processed domestically; Mengkang Port of Jiangcheng County is now actively applying for becoming a port dedicated to fruit import and export. After the application is accepted, the import of processing raw materials will be more convenient and the supply of these raw materials will be adequate.

3. Early Preparations:

The construction of the cold-chain logistics sub-project of Mengkang Industrial Park and the customs supervision area has started, and the infrastructure in the Park has been continuously improved; it is planned to build the highway directly connecting the Mengkang Port.

Investment Estimate and Fund Raising

Investment Estimate: RMB 2 billion.

Fund Raising: self-raising, investment attraction, social financing, etc.

Preferential Policies Applicable

The project is entitled to preferential policies on the development and construction of industrial parks introduced by the central government and the governments at the levels of province, city, and county. Our county adopts the policy of "one policy for one enterprise"; enterprises are entitled to preferential policies on industrial support and investment attraction such as the ones related to "Belt and Road Initiative (BRI)", east-west cooperation for poverty alleviation, and Yunnan Province's efforts to establish the province's city advantages, i.e. "a healthy destination for living with green energy and green food", according to the actual situation of their projects; the Policies on Investment Attraction of Pu'er City (Tentative) and other policies.

Market Prediction (Analysis)

With a borderline of 4,061 km, Yunnan borders Vietnam, Laos, and Myanmar, and is adjacent to a lot of countries in South Asia and Southeast Asia. It has a population of South Asia and Southeast Asia of about 2.8 billion and enjoys the unique advantages for its openness to the southwest. Jiangcheng County connects three countries and stands at the forefront of opening-up. The import and export of foreign trade of Jiangcheng County will continue to grow with the construction of the center in Yunnan built to influence South Asia and Southeast Asia, showing huge market potential. In terms of the foreign trade market, the market share of Yunnan with the "Belt and Road Initiative (BRI)" countries exceeds 70%, which shows that the diversified market development is obviously effective. In 2019, the trade volume of Yunnan with countries along the "Belt and Road" was RMB 162.81 billion, an increase of 14.9%, accounting for 70.1% of the province's foreign trade turnover in the same period. Trade with ASEAN amounted to RMB 114.3 billion, an increase of 25.8%, of which import and export with Myanmar amounted to RMB 55.99 billion, an increase of 29.3%; RMB 30.88 billion with Vietnam, an increase of 12.8%; and RMB 8.69 billion with Laos, an increase of 23.5%. According to statistics, mechanical and electrical products, agricultural products and textiles accounted for about 50% of Yunnan's exports, conflict resources decreased by less than 20%, and the commodity structure was further improved.

Profit Model and Preliminary Benefit Analysis

After the project is completed, all functional areas will make profits based on products and technologies; it is estimated that the main business income will be about RMB 1.42 billion, including RMB 520 million from the processing of characteristic agricultural products, RMB 110 million from comprehensive services, RMB 290 million from mechanical manufacturing and assembly, RMB 330 million from biological development, and RMB 170 million from animal quarantine.

Risk Analysis

The risks the project faces mainly come from the investment reserve and the introduction of customer groups in the early stage. The introduction of project-operating enterprises with customer resources and financial strength is of great help to the avoidance of the risks.

Cooperation Pattern

Sole proprietorship, joint venture, cooperation, participation, equity transfer, etc.

Contact Information

Contact Authority: Investment Promotion Bureau of Jiangcheng County

Contact Person: Yang Liping

Tel.: 0879-3722872

Fax.: 0879-3722872

E-mail: jczsyzj@163.com