Industrial Parks in Guangdong
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About this ebook
Foshan is situated in the central and southern part of Guangdong Province in the Pearl River Delta. It takes only two hours to drive from Foshan to Hong Kong or Macau, and one hour to drive to Guangzhou, the capital of Guangdong Province. Foshan covers an area of 3,848 sq km and has a total population of 5.95 million. The city enjoys a humid subtropical climate with mild winters and hot summers.
Chong Loong Charles Chaw
Charles Chaw is the author of many business guidebooks and market research reports on China. His bestselling: "Manufacturing, Outsourcing and R&D in China" is the first rating guide on China's industrial parks across the country. Began in 2000, he has researched, consulted and promoted China's most established industrial parks. Today, his rating on hundreds of industrial parks set the benchmarks for the sector and made available in Bloomberg BMART, FactSet, Standard & Poor's Capital IQ and Thomson Reuters Research Bank. Under his leadership, the company has published hundreds of research reports covering more than 40 industries on China for over a decade. Charles also appears regularly as guest speaker in numerous business channels with BBC Asia, CNBC, Bloomberg TV, Phoenix TV (Chinese), Channel News Asia, Russia TV 24 and Al Jazeera etc. Leveraging on his extensive knowledge and experience on China's industrial parks development, he has produced a 5-episodes television documentary program titled: "Inside the World Largest Factory" in 2004, and another 6-episode: "Inside China Next Powerhouse" in 2007. Both programs were broadcast internationally in 4 languages. Charles had worked with Deutsche Morgan Grenfell's investment banking unit and Cargill Financial Services Asia, the proprietary trading arm of Cargill Group prior founded China Knowledge.
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Industrial Parks in Guangdong - Chong Loong Charles Chaw
Industrial Parks in Guangdong
Published by:
China Knowledge Press Pte Ltd
119 Genting Lane, HB@119 Genting #06-03, Singapore 349570.
T.: +65 6235 8468 F.: +65 6235 2374
www.chinaknowledge.com
ISBN: 978-981-08-6164-3
at Smashwords
© China Knowledge Press Pte Ltd, 2010
China Knowledge Rating System and Year 2010 Rating Results
Rating China’s Industrial Parks
The culmination of years of research, surveys, interviews and site visits, the China Knowledge Rating System assigns ratings to industrial parks based on five broad factors subdivided into 21 attributes with a view to guiding foreign investors looking to set up in China.
The Rating System not only indicates the best industrial parks in China, but also serves as a guide to understanding China’s economy and future directions for development and to finding the hottest investment spots in a vast land of approximately 9.6 million sq km.
The rationale behind this large-scale research project, and the resulting Rating System, lies in the significance of industrial parks to China’s economic development and to the country’s ability to attract foreign investment.
However, the Rating System also offers more to investors; it allows existing and potential investors to gauge investment locations to find the one that will best suit their business needs. The Rating System is based on factors that include location, infrastructural development, contracted and utilized foreign direct investment (FDI), availability of human resources and administrative efficiency, giving investors a good sense for which industrial park is most suitable for their particular industry, product or service.
The importance of industrial parks to China’s economy cannot be underestimated. In 2008, the GDP of 54 state-level Economic
and Technological Development Zones (ETDZs) reached RMB 1.53 trillion (US$220.3 billion), accounting for 5.1% of the nation’s total. Meanwhile, the 54 state-level High-tech Industrial Development Zones (HIDZs) contributed 9.7% of China’s total value-added industrial output.
Similarly, in terms of attracting FDI, these industrial parks have played a pivotal role. In 2008 the utilized FDI secured by state-level ETDZs reached US$19.5 billion. This translates to 21.1% of the national total. While data is not yet available for HIDZs and Free Trade Zones (FTZs), estimates based on past data indicate that state-level ETDZs, HIDZs and FTZs attracted an amount equivalent to nearly one-third of China’s total utilized FDI each year.
The ability of industrial parks to attract FDI is an important consideration for many foreign investors. Certainly, areas that attract the most foreign investment are the hottest destinations for subsequent capital inflows; they are also the areas that are developing faster and promising and delivering returns.
With hundreds of industrial parks to choose from, finding the ideal industrial park can be problematic for foreign investors unacquainted with the local context. An evaluation of industrial parks is thus particularly critical to aid such investment decisions. Additionally, as many major industrial players are based in industrial parks, in-depth, detailed descriptions of important industrial parks will guide investors in mapping out the industries they are most interested in.
Scope of Ratings
Industrial parks in China are of varying sizes and are at different levels and stages of development.
Some industrial parks are located within other industrial parks. For instance, Export Processing Zones (EPZs) are subsumed under ETDZs or HIDZs, in order that they may leverage the established facilities and resources of the enterprises in the ETDZ and HIDZ. Hence, some EPZs are not graded individually, but as a part of the larger ETDZ or HIDZ within which they are located.
Likewise, Software Development Parks (SDPs) and University Science Parks (USPs) are usually located within a High-tech Industrial Development Zone or High-tech Park (HIDZ). SDPs and USPs are thus also not given individual gradings. Rather, it is the respective HIDZs or HIDZs in which they are located that are rated, taking into consideration the contributions of these SDPs and USPs.
An even more unique case is that of Guangzhou Development District. It administers four state-level development zones: an ETDZ, an HIDZ, an FTZ and an EPZ. In this case, the district is graded as a whole, rather than as four different zones.
Border Economic Cooperation Zones are specifically designed for border trade and export-processing business. Because they are economically small and located in remote areas, they are excluded from our rating system.
Holiday Resorts are specifically designed for tourism. They are also excluded from our rating system.
The scope of the Rating System hence encompasses ETDZs, HIDZs, EPZs and FTZs.
Selection of Factors
The China Knowledge Rating System for China’s Industrial Parks (henceforth, CK Rating) is based on key factors that each have a significant