introduction to heda

8/7/2019 Introduction to HEDA

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The capital of Zhejiang province,

Located in the coastal area of eastern China

Borders on Shanghai city One of the main cities of Yangtze River Delta

Economic Area

Long been famed as a fertile land of fish and rice


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Over 8000 years of cultural accumulations, and a townhistory of over 2200 years.

Has been famed as a heaven on earth because of WestLakes beauty.

Hangzhou Municipality, with its natural scenery of one lake,two towers, three islands and four dams and long-standingcultural legacy, is one of the most significant touristattractions nationwide.

Hangzhou Municipality has established relationships offriendship cities with various overseas towns, namely, Gifuand Fukui of Japan, Boston of USA, Niles of France,Canberra of Australia, Leeds of UK, and so on.


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International Evaluations

The first place among Chinese Cities of Best OverallInvestment Environments in 2003 and 2004 by the WorldBank.

The first place among Best Commercial Cities of Chinese

Mainland by the Forbs Magazine in 2004, 2005, 2006 and2007.

The first place among 24 important cities nationwide byJETRO in 2003.

The best place for investments by Taiwan Electromechanical

Association in 2004. The International Garden City" by International Park and

Amusement Association in 2002.

"United Nations Best Inhabitant City" by the UN in September2001.


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Geographic Location

Aviation

Hangzhou city is only 175 km away from the southof Shanghai city, and by air, one is capable ofarriving at Beijing, Guangzhou and Hong Kongwithin two hours. The Xiaoshan International Airports passenger, cargo and mail handlingcapacities are listed among top ten airports

nationwide. By the end of 2007, 181 airlines havebeen opened, among which there are 32international airlines.


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Geographic Location

Highway

The Huhangyong, Hangning,Hangjincheng Hangqian,Hanghui, Hangxinjing, Hangpuand other expressways join righthere, and one can reach maincities of Yangtze River DeltaEconomic Area within around 3hours.

The planned Hangzhou BayBridge, the would-be longesttransoceanic bridge worldwide, isto be connected to Shanghai Cityand to be put into operation from2008.


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Geographic Location

Railway

There are 8 regular train services between Hangzhou andShanghai everyday, and a single trip lasts for around 78 minutes.

The Huning Speed Railway, the Huhangyongwenxiashen Speedrailway, etc, will have been built up in several years. By then,Railway service will directly join Yangtze River Delta to ZhujiangRiver Delta, and further radiates to areas around Bohai Sea.


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Geographic Location

Waterway

The Jinghang Grand Canal has been linkedup to Qiantang River, which constitutes a

water transport network joining up thenationwide rivers and seas.


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Geographic Location

Subway

In June 2005, the StateDevelopment and ReformCommission approved ofthe subway constructionplan of HangzhouMunicipality, and 8 subwaylines are planned to be builtup with a total length of 278

kms. By 2011 No.1 subwaywill be built up and all the 8lines will be built up by 2050.


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HEDA was ratified by the State Council as anational-grade development zone, and exercisesjurisdiction over an area of 104.7 k.

The best one among 75 Chinese municipaldevelopment zones by Japan External TradeOrganization (JETRO)

The best development zone for transnational

investments jointly by United Nations EnvironmentProgram (UNEP) and other organizations.


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A sub-center of Hangzhou Municipality (XiashaNew Town)

An ecological garden-like modern new town

Center of administrative business, educationaltechnologies

Center of high-and-new technological industries

Place of advanced manufacturing plants


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Location

HEDA is located in eastern Hangzhou Municipality,on the lower reach of Qiantang River, and in southwing of Hangzhou Wing. It is one of the three sub-

centers in one main city, three sub cities, at a samedistance from Shanghai, Suzhou, Shaoxing andNingbo. The would-be CBD-Qianjiang New Town isonly 20 minutes ride away from here.


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Natural Environment

HEDA is situated in a riverside alluvial plain,most of which is reclamation land and saline-

alkali land. It is even, and the elevation is 4.5to 5.5 meters and altitude 5.1 to 5.9 meters.


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Transportation and Communications

In recent years, the city isdiligently practicing thestrategy" RiversideDevelopment ,Across-River

Growth, Eastwardexpansion", and furtheraccelerating the constructionof a range of significanttransportation facilities,through which a multi

dimensional communicationnetwork is finished, andXiasha New city and themain city join up perfectly.


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NO.1 Subway

The NO.1 Subway, under construction, willset up 7 stops in Xiasha, namely, WesternXiasha, Central Xiasha, Eastern Xiasha,

Wenze Road, etc, which jointly cover thecentral areas of Xiasha New Town, HigherEducational Zone, Southeast RiversideResidence Area. By 2011 the NO.1 Subwaywill have been put into operation, when one

can reach municipal downtown areas within20 minutes.


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Infrastructure

HEDA has fostered an eight links, one levelinvestment and development environment,namely, to supply electricity, water, heat,

good traffic, communication, broadband,waste drainage, rainfall drainage, and, theleveled land in the development area.


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Infrastructure

Electricity

Huadong Power Grip, nowthere stands one 220KVsubstation,

4 110KV substations andone heat and power plant.

220 KV Yueya Substation,110KV Xingang Substation,and 110KV Songhe

Substation jointly supplyenterprises with dual return

circuit electricity.


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Infrastructure

Drainage

Within HEDA there has been constructed agrand sewage treatment plant with a daily

capacity of 1,500,000 tons, and until now,phases one and two have been finished andput into practice with a daily capacity of600,000 tons. Phase three, with a daily

capacity of 600,000 tons, is supposed to beput into operation by the end of 2009.


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Infrastructure

Water

Currently, HEADs capacity of water supply is205,000 tons.

Heating

The heating and power plant in the area is capable ofsupplying 460 tons of heating per hour.

Communications

Total capacity of program-controlled telephone withinHEAD is 76,753 and 61,065 of them has been

occupied.


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Commercial Finance and Supporting

Facilities for Residence

Japanese School

Japanese School in Hangzhou is located onsouth side of Desheng Expressway in Xiasha,

with a total construction area of 5846 ofschoolhouses, and covers an area of 23468. It boasts 6 grades, one class for onegrade, whose construction was finished in

April 2008, and has been put into operationever since.


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Cont

Finance

Zhejiang Province is one of the most economicallyvigorous provinces nationwide, and hasaccommodated the branches of HSBC,S

tandardChartered,Su

mitomo Mitsu

iB

ankingCorporation, and other foreign banks, and the fourstate-owned banks, Hangzhou Commercial Bank,Hangzhou United Bank, Bank of Communications allhave established their first-grade branches in HEDA.


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Cont

Entertainments

The Fred Culture Square, Huayuan No.16Street Area, Xizi Yangguang New Town,

Days Hotel & Suites, Hotel ibis, and theCulture and Sports Center jointly providebusiness, shopping, dinning, culture,entertainments and other services.


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Cont

Residences for employees

HEDA has developed low-rental apartmentsfor blue-collar employees and apartments for

white-collar employees.


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Cont

Education and medical care

4 public primary schools,

2 public high schools and

4 private schools, with a

total student population of 20,000 over 20 medical institutions in Xiasha

Zhejiang Oriental Hospital in Xiasha is a AAA hospitals;

On March 28, 2008,the construction project of Hangzhou XiashaHospital covering 130,000 and with a construction area of166,800 and 1,200 beds was initiated and it will beconstructed into a modern demonstrative AAA polyclinic.


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Supply ofTalented Personnel

The Higher Educational Park in HEDA is ofgreatest scale all over the province, where wehave 14 universities, over 150,000 university

students, over 80 key disciplines of nationaland department significance, 187 gifts toconfer Masters and doctors degrees, over20 key laboratories of national and provincial

significance and over 100 scientific researchinstitutes.


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The Largest Xiasha Higher Education Park in Zhejiang Province


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Supply ofTalented Personnel

By the end of 2007, Hangzhou Municipalityhas managed to locate 4 higher educationalparks, namely, Xiasha, Bin-jiang, Xiaoheshan

and Zijingang, where stand over 30universities, over 80 professional institutes,and work over 300,000 professionals.Besides, there exist over 30 higher and

middle vocational and technical schools, witha student population of 200,000.


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Regional Layout

HEDA exercises jurisdiction over an area of104.7 k, and a population of over 300,000.

The development zone brings into full playthe regional, intellectual, industrial andenvironmental advantages, implements thestrategy of one garden, diverse zones, andis committed to the construction of aninternationally-advanced manufacturing base,a university town of new era, and a garden-style ecological sub-centre of the city.


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Regional Layout


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Administration and Business Zone

With a planned area of 7.8 k, it is thewould-be downtown area of Xiasha Town for

administration and business, culture andtechnology, and living and residence.Currently, it is under overall development andconstruction, and, by 2010, it will have been

armed with various municipal infrastructure.


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Costal Residence Park

Taking advantage of the Qiantang River landscapeand ecological wetland and other resources, it

devotes itself to the construction of a high-qualityresidence zone for a population of 150,000. In 2008,the Northern Higher Education Unit will undertake anoverall development and construction. With aplanned area of 4.46 k, it will be constructed into a

multifunctional riverside ecological city of convenienttransport, pretty environment, complete supportingfacilities etc.


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Export Processing Zone

With a planned area of 2.92 k, among which 2.007k has been put into operation, it has

accommodated 27 enterprises. In April, 2000,Zhejiang Export Processing Zone, as one of the firstpilot projects by the country, was set up right here,where a series of favorable policies, for instance,customs within borders, are brought into practice. It

is a specific zone where our customs exercisesclosed management in the form of electronicclearance and non-stop port.


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Comprehensive Industrial Park

With a total area of 18 k, it has offeredaccommodations to over 700 industrialenterprises of domestic and foreign

investments, which features some leadingindustries, for instance, electronic information,biological pharmaceuticals, mechanicalmanufacture, and food and beverages.


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Northern Industrial Zone

With a planned area of 8 k, it hasaccommodated altogether 30 enterprises,

home and abroad, for instance, PanasonicsIndustrial Garden, COFCO Pack, Air Liquide,Prologis Logistics, LONG CHEN PAPER CO.,LTD.


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Jiangdong Industrial Park

The Jiangdong Industrial Park of HEDAboasts an planned area of 40 k, lying to the

east of Qianjiang Tunnel Freeway, north ofQianjiang NO.9 Bridge Connection Highway,south of south side of Qiantang River, andwest of the east boundary. It is in the hope ofbecoming the most significant industrialdevelopment base of the city, with its focuson the development of auto components andparts and entire automobile industries


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Modern Logistics Park

It boasts a planned area of 330,350. Among it, bonded Logistics Center (Phase

One) covers an area of 170,350 , which isdevoted to bonded storage, circulationprocessing and increment services, globalpurchase and distribution, information serviceand otherwise; Prologis Logistics covers anarea of 240 160,000 , and by building uphigh-standard platform, it brings in logisticsbusinesses of international brands.


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Singapore-Hangzhou Science & Technology

Park

With a planned area of 430 k, it is devotedto the software development, R & D and high-and-new technological industries. The firstbody of building was completed by the end of2008.


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The High-Tech Incubator

The Incubator covers an area of 52 mu, and will bedeveloped and constructed by three phases. It will be

geared to the needs of medium-and-small-sizedenterprises, and provide a platform for the promotionof the industrialization of scientific researchachievements. Phase One of it covers a constructionarea of 20,000,and has been put into operation;

Phase Two, with a construction area 80,000,will beinitiated in the latter half of 2009, and concentrate onIT, biological pharmaceutical R&D etc.


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Xiasha Higher Education Area

HEDA actively supports and guides the developmentof innovation industries, by paying attention toconstruct the idea of two golden business cards--"Made in Xiasha and Cultural Xiasha". TheManagement Committee of HEDA elaborately buildsXiasha Higher Education Area, by upholding theprinciples of building together, enjoying together anddeveloping together and relying on the international

entrepreneurial platform supported by the universitytown including 14 colleges and Singapore-HangzhouScience & Technology Park (SHSTP).


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Industrial Structure

By the end of 2007, there had been 474 foreign-funded enterprises from 39 countries and regions,and the total contracted investment had amounted toUSD5.808 billion, actual input of USD2.730 billion,the total local output of RMB25 billion, sales valueof industry of RMB128.825 billion, with each maindevelopment index ranks in the first group among 54state-level development areas. And 23 from the Top

500 enterprises have invested on 49 projects inHEDA.


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Industrial Structure

At present, the area has formed 4 pillarindustries, they are, electronic informationindustry, biological pharmaceutics industry,

machinery manufacturing industry and foodand beverage industry. The gross value ofindustrial amounted to RMB94.803 billion,accounting for 85.15% of the gross value of

industrial of the whole area in 2006.


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Famous food processing companies such as Wahaha,

Masterkong and Coca-cola have made the food industry a

leading industry.


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Enterprises in HEDA

By the end of 2007, HEDA had managed tobring in 474 foreign-investment enterprisesfrom 39 countries and areas, entered intocontracts of $5,808,000,000 and actuallyemployed $2,730,000,000. 23 of top 500enterprises worldwide listed by Fortunemagazine had invested in 49 projects inHEDA. It had achieved RMB120 billion of

gross value of industrial output, 25 billionRMB of regional total output value and122.85 billion RMB of industrial sales value.


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Key Enterprises Within HEDA


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Preferential Policies

Tax policy

Since Jan.1st, 2008, the enterprises enjoying

preferential policies of low tax rates, switch graduallyto legal tax rates in 5 years since new tax law wasimposed on. Among them, the enterprises enjoying15% income tax, shall pay 18% of income tax in 2008,and 20% in 2009, 22% in 2010, 24% in 2011, 25% in

2012; the enterprises paying 24% income tax, shallpay 25% of income tax from 2008.


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Preferential Policies

Customs Policies

Enterprises in conformity with certainconditions shall enjoy relevant reduction and

remission policies in fields of export tariff,import tariff and processing trade, stipulatedby the state.


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Industrial Promotion Policies

Policies to speed up industrial and economicdevelopment

HEDA accordingly made On Awarding policies to

Promote Industrial and Economic Development(2008), and established the prizes of Annual DoubleTen Best-Excellent Entrepreneur, Enterprises scaleContribution, Enterprises Tax Contribution, IndustrialInvestment, Enterprises Energy Saving andDrainage Reduction, Encouragement of listing, Safe

Production, Enterprises Brand and StandardConstruction, etc, and for those according with thestipulations, HEDA will supply capital to award andhelp them sustain.


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Awarding policies for technological

development

HEDA accordingly made On Several Policies

to Inspire Scientific and TechnologicalAdvancement (2008), and planned to subsidyand help to sustain those engaged in hightechnologies, R & D of high-and-new

technologies, technological advancements,new products, R & D investments, inventionand patent, etc.


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Policies to speed up the development of cooperationcenters of production, study and research

HEDA accordingly made On Several Policies toInspire the development of cooperation centers ofproduction, study and research (2008), and specially

set aside RMB10 million as special fund for the cooperations of production, study and research inHEDA , to subsidy and help sustain thememberships of the cooperation center to performproject cooperation of production, study and research,mutual construction cooperation, talented peoplescooperation, sharing of instrument and equipment,constructions of technological innovation platforms,etc.


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Policies to develop modern service

industry

HEDA accordingly made On Awarding

Policies to Inspire the Development ofmodern service industry, and focuses on thedevelopment of commercial trade (retail),service outsourcing, creation industry,

tourism, culture and entertainments,intermediary services, community servicesand other modern service projects.


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Operation Cost

Land

Enterprises invested by foreign tradesmen

are not capable of owning land directly, butcapable of making use of land by purchasingcertain years of right of land use from localgovernments, and the maximum year of rightof land use is 50.

Land rights of use shall be obtained only inthe forms of tender, auction and quotation.


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Operation Cost

Factory Building

In HEDA one can construct specialized factory buildings oflightweight steel structure.

Guiding price for the construction of 3-to-6 leveled steel and

concrete factory buildings is 75 to 100 US dollars per; It usually takes 120 to 200 days to construct a standard

lightweight steel factory building, while 150 to 300 days toconstruct a steel and concrete factory building.

HEDA provides available standard factory buildings for rent. Monthly rental for standard factory is around 15 RMB per

(Different units of property rights may offer floating prices basedon this); Standard factory buildings refer to factory buildings of superior

steel and concrete, 1000 s per floor, and with the height of 4to 5 meters and of open style.


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Operation Cost

Cost ofHR

According to incomplete statistics, averageworkers of foreign-investment enterprises

receive 900 to 1300 RMB per month,technicians and operators 1300 to 3000 RMB,engineers 2500 to 8000 RMB, and superioradministrative personnels income varies with

different services, company scales andpositions. Lowest wage: 850 RMB in urbanarea, 750 RMB in Xiaoshan and Yuhang.


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Setting up a company

HEDA Management Commission is anagency of Hangzhou Municipal Government,

which practices standard management andsingle-stop services, project establishment,company establishment, approval andregistration, land application and construction

procedure can all take place in the handlinghall of the management commission.


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Process for Foreign-Investment Enterprisesto Get Approved and Registration


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Higher development targets in new era: HEDAmust be transformed from a single industrial zone

into one of the three sub-city centers of Hangzhou.

Setting up a zone to building a city, is the newchallenge for the people in HEDA.

Three major targets

1. Advanced international manufacturing base

2. New century university town

3. Ecological garden-like city

A Vision of the Future


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Thank you!

introduction to heda

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