Dec. 20, 2012 (China Knowledge) – Guangzhou Nansha Economic and Technological Development Zone (Guangzhou Nansha ETDZ) rated “AA” by China Knowledge in a research report published today. The industrial park approved as a state-level development zone by the State Council in 1993. It covers an area of 27.6 sq km. Guangzhou Nansha Export Processing Zone (Guangzhou Nansha EPZ), located within Guangzhou Nansha ETDZ, won approval to be a state-level development zone in 2005. Covering an area of 1.4 sq km, the processing zone commenced official operations in 2007. Guangzhou Nansha EPZ is the second export processing zone that was founded in Guangzhou after the Guangzhou Export Processing Zone.The Guangzhou Nansha ETDZ is located in Nansha District in the southern part of Guangzhou, the capital of Guangdong Province. Guangzhou’s downtown area is 54 km away. Guangzhou is the center of the Pearl River Delta, and all the major cities of the delta are within a 1.5-hour drive. The zone is a mere 71 km from Hong Kong and 75 km from Macau.
Guangzhou Baiyun International Airport and Shenzhen Bao’an Airport are 54 km and 70 km from Guangzhou Nansha ETDZ. Nansha Port is an important part of Guangzhou Port, which is the third largest port in China and had handled 11.2 million TEUs in 2009. The Xiaohu Berth, a berth specializing in chemicals and chemical products, has an annual handling capacity of 12.36 million tons of cargo.
In 2009, GDP of Guangzhou Nansha ETDZ (including Nansha EPZ) reached US$40.5 billion. Guangzhou Nansha ETDZ encourages investment in plastics, chemicals, electronics, food processing, shipbuilding and other high-tech industries, while Guangzhou Nansha EPZ encourages investment in IT, optoelectronics, precision machinery and home appliances. That year, the value-added industrial output of the zone amounted to RMB 29.9 billion, up 8.24% year on year.
The automobile industry is the strongest industry in the Nansha ETDZ. Japan-based Toyota is a major investor in the zone. Guangzhou Toyota Motor Co Ltd, a joint venture between Guangzhou Automobile and Toyota Motor Corp, was set up in 2004 in Guangzhou Nansha ETDZ with a registered capital of RMB 1.3 billion. The venture involved a total investment of RMB 3.8 billion. The utilized FDI of the zone amounted to US$622 million, up 12.34% year on year.
Over 40 Fortune 500 enterprises have commenced businesses in Nansha ETDZ. Besides Toyota, major investors in the zone include BASF, GM, JFE, Mitsubishi, Meiko, Lonza and large domestic firms such as China State Shipbuilding Corp, China Erzhong, Dongfang Electric, Guangzhou Iron & Steel, Dongling Group and Liby. In 2009, the export value rose 10.94% to US$2.48 billion, accounting for 6.6% of Guangzhou’s total.
The latest figures show that in the first half of 2010, value-added industrial output of the zone amounted to RMB 26.12 billion, up 37.68% year on year. The utilized FDI fell 50.26% to US$151.25 million, while the export value rose 101.5% to US$2.4 billion.
By September 2010, gross industrial output of Guangzhou Nansha ETDZ (including Nansha EPZ) rose 30.73% year on year and reached RMB 101.79 billion.
Industrial parks rated AA are highly attractive and are highly recommended. However, in comparison with industrial parks given the AAA rating, these industrial parks still lag behind in some areas. The most typical disadvantage is the smaller economic size as reflected in the GDP or FDI, high investment costs and limited land resources. Together with AAA-rated industrial parks, these industrial parks are considered first-tier. There are 24 with “AA” rating among 254 national or municipal level industrial parks rated by China Knowledge since 2003.
Please note: the version of this report is for a global site license.