Hainan Free Trade Port (FTP) in south China’s Hainan province, an FTP featuring high-level opening-up and high-quality development, released a set of high-profile statistics as it comes near its one-year anniversary.
As of the end of 2020, 38,200 enterprises had registered in 11 major industrial parks of the FTP. They reported total revenue of over 466.5 billion yuan ($ 71.34 billion) last year, up 80 percent year on year. The tax revenue of the FTP rose 12 percent from a year ago, hitting 39.5 billion yuan.
Hainan Wallkingdon Glass Industry Co., Ltd. is a glass deep processing enterprises. In a newly built plant of the enterprise in the FTP’s Yangpu Economic Development Zone, a new production line was about to be completed. It was expected to be put into operation in June this year.
“Although the production line has just taken form, it has received orders that would keep it busy through the rest of the year,” said Li Changteng, general manager of the company.
Several years ago, Wallkingdon exclusively introduced a glass painting patent technology from an overseas enterprise, to apply which it must establish a new production line. However, its original plant in Danzhou, southwest Hainan province, had no space for an extra production line.
Therefore, the company decided to build a new plant in the Yangpu Economic Development Zone, where it may enjoy a number of favorable policies.
The Yangpu Economic Development Zone imposes zero tariff on some imported raw materials and equipment for encouraged industries, and exempts import duties on products made by imported raw and auxiliary materials that generate added value of no less than 30 percent. “Such tax reduction has saved us at least 20 percent of our cost,” Li said.
As the local government actively implements the policies of the Hainan FTP, companies like Wallkingdon have embraced faster transformation and enjoyed greater benefits.
By upgrading technologies, Wallkingdon has become a star exporter. Since last year, the company has signed export contracts with the Abu Dhabi international Airport and the Mashreq Bank in the United Arab Emirates, as well as the Bahrain International Airport located in Bahrain.
The favorable policies of the Hainan FTP are gradually becoming a driver for the transformation and upgrading of Hainan enterprises.
Zhou Junping, an official with the Yangpu Economic Development Zone, considers cutting tariffs a powerful policy for attracting companies.
Over 20 projects in food, high technology, bonded repairing, and tourism consumer goods manufacturing sectors have landed in the economic development zone, Zhou said.
It is estimated that by the end of March, five companies in Hainan have applied to set up e-records for cutting tax on raw and auxiliary materials, which helped them reduce 99.31 million yuan of import tax during the customs clearance for products worth of 890 million yuan.
The rapid development of the industrial parks is a result of their efforts to improve business environment.
Located in Haikou, capital city of Hainan province, the Haikou National Hi-tech Industrial Development Zone has made a major move that encourages its officials and cadres to provide services and assistance for enterprises.
Now, 53 officials and cadres from middle management and above with the management committee of the development zone are assigned to serve 96 companies and 128 projects. What they do not only trivial matters such as helping enterprises with registration, stamp carving, and construction site coordination, but also important businesses such as application, certification and approval of projects.
Thanks to these efforts, the Haikou National Hi-tech Industrial Development Zone has significantly made it easier for companies to do business, with its business environment ranking the fourth among all 96 candidates in Haikou last year.
In 2020, 1,935 companies were registered in the industrial park, up 426 percent from a year ago.
This year, the government of Hainan has allocated 26.1 billion yuan to construct and improve infrastructure and supporting facilities in its industrial parks, and will continuously strengthen its investment on education, healthcare, housing, and entertainment.