Three advantages to investing in Liaoning, China
Singapore minister identifies the lucrative investment perks and areas in the fast-growing Chinese province.
Chinese government prioritization, proximity to Korea and Japan, and lower operations costs all give Liaoning a more competitive edge than traditional investment hubs. Four areas have also been identified as development hotspots -- Shenbei New Area , Shenxi Industrial Corridor, Hunnan Region and Qipanshan Tourist Resort.
“Liaoning is an attractive investment location due to several factors," said Mr Gan Kim Yong, Minister for Health who is now in Liaoning with 65 Singapore-based companies on a business mission following a trade meeting between the province and Singapore last September.
"First, it plays a key role in the Central government's plans to revitalise the Northeast region; second, it is geographically close to key economies like Korea and Japan, serving as China's gateway to Northeast Asia; third, it has relatively lower operational costs," said Minister Gan.
"Coupled with these advantages, cities like Shenyang and Dalian are growing their urban areas to boost growth. This creates new opportunities for our companies in services, including urban solutions, transport and logistics, and even consumer-related areas like pre-school education,” he said.
The key cities of Shenyang and Dalian are expanding their urban areas to boost growth, creating opportunities for Singapore-based companies in the services sectors. Meanwhile, the coastal province of Liaoning grew at a GDP of 12.1% and attracted US$24.2 billion worth of investments in 2011, making it the province with the second highest FDI in China.
GDP of Shenyang and Dalian hit 12.6% and 14% respectively in 2011. The governments are expanding urban areas to spread out their commercial centres, and reduce congestion. This will increase demand for services in urban solutions, transport and logistics, and education, lining up perfectly with the strengths of Singapore-based companies.
The Dalian government will increase dedicated urban area from 609 sq km to about 2,900 sq km by 2021. In Shenyang's 12th Five Year Plan, the government focuses on developing four key areas: Shenbei New Area in the north (北部的沈北地区), Shenxi Industrial Corridor in the west (部的沈西工业走廊), Hunnan Region in the south (南部的大浑南地区) and Qipanshan Tourist Resort in the east (东部的棋盘山旅游度假区).
This strategy re-looks at the city‟s layout, with plans to expand the city space by developingfour key areas. The delegation visited some of these new areas – Jinzhou New Area (金州区) and Ganjingzi District (甘井子区) in Dalian, and Shenbei New Area (沈北新区) in Shenyang.