Dec. 20, 2012 (China Knowledge) – Haikou Free Trade Zone (Haikou FTZ) rated “C” by China Knowledge in a research report published today. The industrial park is a state-level free trade zone set up by the State Council in 1992.
Haikou FTZ is located 3 km from Haikou Port, which is Hainan’s busiest port, 18 km from Haikou Meilan International Airport and 10 km from the railway. Nanhai Road passes close to Haikou FTZ, connecting it with major highways in Hainan. Haikou Port is a major port in the southern coastal area of China. It offers 23 international sea routes. Ships setting sail from this port can reach South Korea, Japan, Malaysia, Singapore, Thailand, Indonesia, Kuwait, Saudi Arabia and Australia.
Last year, the gross industrial output from Haikou FTZ increased 44.4% to RMB 15.2 billion. Haikou FTZ’s pillar industries are biopharmaceuticals, information technology and automobiles. In 2010, the gross industrial output from biopharmaceuticals rose 49.53% year on year and reached RMB 3.85 billion, accounting for 25.31% of the zone’s total.
Yangshengtang Pharmaceuticals, Zhonghe Pharmaceuticals and Bright Future Pharmaceuticals are major investors in this sector. The automobile industry in Haikou FTZ is rather strong. Haima Auto, the largest enterprise in Haikou FTZ, achieved a gross industrial output of RMB 8.17 billion in 2010, more than one-half of the zone’s total gross industrial output. Haima Auto set up by China’s second-largest auto manufacturer, First Auto Works, in 1988 when Hainan was established as a province. It has two vehicle assembly factories that have a combined output capacity of 150,000 cars per year. A third factory is under construction and will increase Haima’s total annual production capacity to 400,000.
Industrial parks rated C are viewed as least attractive. These industrial parks are not recommended for investment. There are 14 municipal level ‘C’ rating industrial parks among 254 ones rated by China Knowledge since 2003. There is requirement for financing to develop its infrastructure, facilities; and even A&P to attract more companies to set up manufacturing plants.
Please note: the version of this report is for a global site license.