Hainan - Haikou Free Trade Zone

Haikou Free Trade Zone

Facts&Figures (2007)

Source: Administration Committee of Haikou FTZ

Introduction

Located south of downtown Haikou, the Haikou Free Trade Zone (Haikou FTZ) is a state level free trade zone set up by the State Council in 1992.

Haikou FTZ is located 3 km away from Haikou Port (Hainan's busiest port), 18 km away from Haikou Meilan International Airport and 10 km away from the railway. The Nanhai Road passes by Haikou FTZ, connecting it with major highways in Hainan.

Haikou Port is a major port in the southern coastal area of China. It has opened 23 international sea routes. Ships setting sail from this port can reach South Korea, Japan, Malaysia, Singapore, Thailand, Indonesia, Kuwait, Saudi Arabia and Australia.

Investment Climate

In the first half of 2007, Haikou FTZ's total industrial output reached RMB 6.8 billion, up 21.3% year on year, accounting for 40.4% of the city's total. In addition, its value-added industrial output hit RMB 1.3 billion, up 24.8% year on year, accounting for 31.9% of the city's total. Meanwhile, the total export and import value grew by 18.8% to US$118 million, accounting for 6.3% of the city's total.

Haikou FTZ’s pillar industries include the automobile, electronics and IT, and biopharmaceutical industries. In the first half of 2007, the industrial output of the automobile, electronics and IT companies in the zone reached RMB 6.2 billion, accounting for 91.2% of the zone's total.

Haima Auto, Mingfang Machinery, Yangshengtang Pharmaceuticals, Zhonghe Pharmaceuticals and Bright Future Pharmaceuticals are major investors in these sectors.

Haima Auto is the largest enterprise in Haikou FTZ. It was set up by China's second largest auto manufacturer, First Auto Works, in 1988 when Hainan was established as a province. In 2007, it sold over 130,000 cars, 62.0% higher than the previous year, while its revenue reached RMB 8.5 billion, up 129.0% over 2006. At present, it has two vehicle assembly factories, with an output capacity of 150,000 cars per year. The third factory is under construction and it will increase the total capacity to 400,000.