Promoting Guangdong-Macao Co-operation and Exploring Business Opportunities for Enterprises
President Hu Jintao presides over the ground-breaking Ceremony of the Hengqin Campus of University of Macau
Information Meeting on Zhuhai Hengqin Overall Development Plan held in October 2009 in Macao
Vice Premier Li Keqiang announced the start of construction of the Hong Kong-Zhuhai-Macao Bridge
Co-operation between Guangdong and Macao to Seize Chances for Regional Collaboration Guangdong and Macao have established long-term inseparable relationships with Guangdong being a vital partner. The two regions have jointly organised a number of large activities which have genuinely deepened co-operation between the two regions by making use of Macao’s advantage as a trade and economic co-operation service platform. The promulgation of the Outline of the Plan for the Reform and Development of the Pearl River Delta, which has included Guangdong-Hong Kong- Macao co-operation as part of the national strategic development and explicitly identified Macao as a world tourism and leisure destination, further promoting closer alliances between Guangdong and Macao, making the best use of the complementary relations between the two regions in tourism, convention and exhibition, trade as well as the service outsourcing industry which is the focus of development of Guangdong province.
Due to geographical ties, Guangdong province has been the major beneficiary of Macao investments. From 1978 to 2008, Macao’s accumulated direct investment projects in Guangdong have totalled 7,886, with an accumulated actual investment amount of US$4.8 billion. There are over 140 Guangdong enterprises and representative offices in Macao, with a Guangdong-Macao import and export total of US$2.22 billion. Guangdong enterprises’ contracted projects and completed labour contracts in Macao amounted to US$280 million. Supplement VI to CEPA strengthens the role played by Guangdong province in the early implementation of CEPA and the scope of businesses of Macao service suppliers have been further expanded in Guangdong province, thus promoting trade and economic exchanges between the two regions. The Guangdong authority has also implemented a number of facilitation measures to assist Macao-funded enterprises in business upgrades or transformation.
Integration of Zhuhai and Macao for Market Expansion
Zhuhai-Macao co-operation is a vital component in Guangdong- Macao collaboration, Zhuhai is located on the south-west of the Pearl River estuary in Guangdong province, linked to Macao by land. Zhuhai and Macao are in close communication, with the latter being the most important source of foreign investment in Zhuhai, the two have established strong foundations contacts and co-operation for trade and economy, infrastructure facilities, port facilities and tourism. In March 2009, the Zhuhai Foreign Trade and Economic Bureau established a liaison office in Macao located in IPIM (currently as Zhuhai Investment Promotion Bureau - Zhuhai Consultancy Office in Macao), to provide a more convenient consultation service to investors in both regions and foster more opportunities for the enterprises in both areas.
The development plans for Henqin Island has provided a new momentum for Guangdong-Macao co-operation and new directions for the development of economic diversification in Macao. The State Council passed the Overall Development of Henqin Island in June 2009 and Henqin was included in the Zhuhai Economic Special Zone to enjoy taxation and policy preferential treatments with focus on the development of business and trade services, leisure tourism, technology and academic research and development, high and new technology as well as cultural creative industries, providing valuable opportunities to the industrial chain of tourism, convention and exhibition industry. The University of Macau, Henqin Campus will become the highlight of a new round of co-operation, as an important base for training experts for different industries and areas required for the development of moderate economic diversification.
The construction of the Hong Kong-Zhuhai-Macao Bridge which involves an investment of RMB72.9 billion commenced in mid December 2009. The Bridge will further promote passenger flows and the development of the tourism and logistics industries, deepening the level of endorsement between the two regions and establish a larger market through collaboration.
An overview of the Guangdong Province Market
Guangdong province is the most dynamic economic region in China with trade relations with over 200 countries and regions around the world. Enterprises from over 100 countries and regions invest in Guangdong province and Guangdong enterprises investments are dispersed around the world in over 90 countries and regions.
From 1979 to 2008, Guangdong province recorded double-digit growth in its average annual GDP for 29 consecutive years, ranking top in the country. In 2009, gross regional production was valued at RMB3,569.6 billion, representing a 10.1% increase of that of 2008, with the GDP per capita at RMB37,589, an increase of 8.7% year on year.
Guangdong province is one of the leading industrial provinces in China. In recent years, the three emerging pillar industries, namely electronic information, electrical machines and specialised equipment, petro-chemical industry are maintaining strong development and traditional pillar industries such as textiles and clothing, food and beverages and construction materials are developing steadily, while the three major potential industries including paper-making, pharmaceuticals and automobile manufacturing are developing rapidly with improved structures. The nine pillar industries mentioned have been playing an increasingly leading role in provincial industrial growth. In 2008, the nine industries achieved an industrial added value amount of RMB1,056.19 billion, a growth of 13.4%.
The capacity of the service industry in Guangdong has been expanding and the structure has been optimised continuously. In 2008, the service industry attracted US$7.14 billion worth of foreign investment, demonstrating a growth of 14.4% and amounting to 37.2% of the actual foreign investment of the entire province. Modern service industries such as logistics, convention and exhibition industries have been developing rapidly. The China Import and Export Fair held twice a year serves as a vast communication and co-operation platform for business visitors from around the world.
Guangdong attaches great importance to the development of regional economic co-operation, fostering wider market and resource complementarity. The province is striving to strengthen its trade and economic relations with neighbouring regions and the international market through major platforms in Guangdong-Hong Kong-Macao co-operation, Pan-PRD regional co-operation and China-ASEAN cooperation.
IPIM Assists Guangdong and Macao Enterprises to Explore Business Opportunities
Under the principles and framework of the Closer and Comprehensive Strategic Co-operation Agreement signed between IPIM and the Department of Foreign Trade and Economic Co-operation, Guangdong province at the beginning of March 2009, Guangdong-Macao trade and economic co-operation has become closer. While assisting enterprises in Guangdong to explore overseas markets, Macao also promotes local economic development and makes the best use of its advantage as a trade and economic service platform.
In August 2009, Guangdong and Macao jointly organised a large business promotion activity in Brazil and this year the two regions will continue to join forces in attracting foreign investment and business. IPIM and the Department of Foreign Trade and Economic Co-operation, Guangdong province also organised the Guangdong and Macao Branded Products Fair and related Guangdong-Macao trade promotion activities in 2009, to assist Guangdong branded commodities to explore Macao and overseas markets. IPIM has also increased its participation in the Guangdong Foreign Invested Enterprises Product (Domestic Sale) Fair, strengthened co-operation with Guangdong authorities in organizing trade and economic promotion activities, assisted local enterprise to understand Guangdong’s preferential and incentive policies provided to enterprises, as well as actively participating in trade and economic activities in both regions to strengthen information exchanges between various sectors particularly the convention and exhibition industry. During the Macao International Trade and Investment Fair (MIF), IPIM organised various business matching activities with relevant Guangdong authorities and successfully completed business matching and project cooperation, to provide a medium of co-operation for Guangdong-Macao enterprises, especially SMEs.
To further strengthen the trade and economic liaison between Macao and Guangdong province, IPIM has established a liaison office in Jieyang, Guangdong province, to assist Guangdong and Macao enterprise to explore overseas markets (Portuguese-speaking countries ) seize market opportunities by promoting Macao’s investment and economic environment, provide a Guangdong economic consultation service and promote Guangdong-Macao trade and economic communication.