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中国河口-越南老挝机电组装建设项目Construction Project of Hekou (China) - Lao Cai(Vietnam) Electromechanical Assembly
发布时间:2017-07-12 17:14:28   来源:本站   作者:   点击:217次
 

Name

中国河口-越南老挝机电组装建设项目Construction Project of Hekou (China) - Lao Cai(Vietnam) Electromechanical Assembly

Industry Involved

Advanced equipment manufacturing

Site

Hekou (China) - Lao Cai (Vietnam) Cross-Border Economic Cooperation Zone of Honghe Prefecture

Description

Hekou (China) - Lao Cai (Vietnam) Cross-Border Economic Cooperation Zone is located in the adjacent region of Hekou (China) and Bat Xat (Lao Cai, Vietnam). The total area of the surveillance zone is 21 km2 including 11 km2 for China and 10 km2 for Vietnam. The management mode of “one zone for two countries, outside the customs and within the boundary, free trade, market operation and coordination management” is employed. Relying on the advantages of Hekou Port (a national Class I port), two kinds of resources and markets are fully used to develop mechanical equipment manufacturing, improve the additional value of products and forge a production base of electromechanical assembly for Southeast Asian and South Asian markets.

Content

Construction scale: The total annual output of agricultural machineries is 16000 sets including 10,000 roller tractors, 2000 combine harvesters, 2000 dryers and 2000 mini-tillers. The total floor area is 164,030 m2 including the major production area of 85,000 m2, the auxiliary production area of 43,000 m2 and the supporting service area of 36,030 m2

Construction duration: 2 years

Land area: 300 mu

Supporting Conditions

There are three cross-border bridges connected to Lao Cai (Vietnam) in Hekou County with geographical advantages of “the port is the county and the county is the port” and “two countries and one city”. Hekou is one of the 17 land ports in the country. In 2014, the total amount of foreign export and import of Honghe Prefecture was USD 1,164,000,000 with a decrease of 3.5% compared with that of the last year. The export amount was USD 886,000,000 with a year-on-year increase of 16.4% and the import amount was USD 277,000,000 with a year-on-year decrease of 37.5%. The infrastructure construction of the park in China of Hekou Cross-Border Economic Cooperation Zone has been commenced in April 2014. There are 2 construction projects that have been commenced with a total investment of RMB 784,000,000. At present, the investment that has been put into projects is RMB 546,600,000. There are preliminary 5 projects that have been commenced and the investment estimated is RMB 895,000,000. The project site selection and feasibility study have been completed for water supply, power supply and sewage treatment projects. As for the investment promotion, investment promotion planning, investment promotion project packaging and preparation of preferential policies for investment promotion have been completed for the park in China of Hekou (China) - Lao Cai (Vietnam) Cross-Border Economic Cooperation Zone at present. There are more than 100 enterprises with nearly 300 people that have investigated and visited the Hekou Cross-Border Economic Cooperation Zone. Enterprises relating to electronic and electrical equipment manufacturing, textile and apparel manufacturing, bonded logistics processing and cross-border e-commerce intend to invest in the Zone. Water, power supply and transportation facilities are available, providing mature conditions for construction. The general planning in Basa Block has been determined and the construction of the road network within core area of 4.61 km2 of the surveillance zone is commenced and the site of the project is under adjustment.

Investment Estimate and Fund Raising

Investment estimate: A total investment of RMB 524,050,000 including RMB 484,050,000 of fixed-asset investment and RMB 40,000,000 of working capital

Fund raising: RMB 174,050,000 of self-raised funds and RMB 350,000,000 of bank loans

Preferential Policies Applicable

Preferential policies for investment promotion of Hekou County, preferential policies of Yunnan Province on accelerating the construction of border economic cooperation zones, preferential policies of Yunnan Province on supporting the construction of Hekou Border Economic Cooperation Zone of Honghe Prefecture

Market Prediction (Analysis)

According to the statistics of Ministry of Industry & Trade of Vietnam, the total amount of frontier trade was USD 27,560,000,000 in 2015. The amount of frontier trade between China and Vietnam was USD 23,400,000,000 accounting for 85% with a year-on-year increase of 10.1%. 85% of products exported to Vietnam were electromechanical equipment and the products exported to China were mainly agricultural products and resource products. The agricultural modernization of Vietnam develops rapidly, but most of the agricultural machineries are imported from China, Japan, South Korea and Thailand. In 2014, over 60% of agricultural machineries were imported and around 90% of combine harvesters in Jiulong River Plain were also imported. The Red River Plain and the Jiulong River Plain are the major grain-producing areas in Vietnam, but the scale of agricultural machinery manufacturing is small and the quality of products is poor. Therefore, there are great demands for agricultural machineries. There are 12 member states of TPP of which the economy accounts for 40% of the global economy. China hasn’t joined the TPP now, so preferential policies for member states of TPP are not available for China. Nevertheless, due to the establishment of cross-border zone, the foreign market share can be improved through exporting project products including tractors and harvesters abroad with the help of Vietnam, the member state of TPP.

Profit Model and Preliminary Benefit Analysis

Economic benefits: After this project is put into operation, the economic benefits can be obtained through selling roller tractors, combine harvesters, dryers and mini-tillers. The annual sales revenue is expected to reach RMB 304,000,000 with total pre-tax profits of RMB 133,490,000 and the payback period is 8 years (including 2 years of construction period)

Social benefits: After this project is completed, the industrial chain can be extended; more jobs can be created; local financial revenue can be increase; the economic development of Honghe Prefecture can be promoted thereby

Risk Analysis

Financial risk may occur during the operation of this project, but the risk can be avoided by implementing approval system of capital loan and application and strengthening the risk warning mechanism

Cooperation Pattern

Joint venture, cooperation and equity participation

Contact Information

Contact Unit: Investment Promotion Bureau of Hekou County

Contact Person: Li Lin

Tel.: 0873-3451210

Fax: 0873-3451193

E-mail: 120032493@ qq.com

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