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City bets big on ASEAN

By Ding Congrong, Chen Ke and Yuan Lingling (China Daily) Updated: 2015-05-08 11:03

City bets big on ASEAN

The Association of Southeast Asian Nations has been ranked as the top destination for investors from Nantong, Jiangsu province, to spend their money.

Government data shows that Nantong-headquartered companies poured a total of more than $1 billion into 52 investment projects in ASEAN member regions by 2014.

The amount accounted for nearly half of Nantong’s total overseas investments and 38.9 percent of the entire Jiangsu business community’s total investments in ASEAN economies.

Shuangma Chemicals based in Rugao, Nantong, invested $250 million to build a modern industrial cluster integrating agriculture and grease processing in Indonesia. The first overseas provincial-level industrial cluster in Jiangsu’s history attracted more than 10 companies to establish facilities.

Jiangsu Dinuo Daily Chemical Group spent $200 million to build a plant in the ASEAN member country and Jiangsu Lianfa Textile Co invested in three clothing factories and one agricultural project in Cambodia.

Nantong city government and the China-ASEAN Business Council signed a memorandum of understanding concerning cooperation in business opportunities in February.

The agreement signals that Nantong and ASEAN will conduct enhanced cooperation on a wider scale, local officials said.

Southeast Asian countries are increasing expenditure on infrastructure. The trend is providing enormous opportunities to Nantong engineering contractors, industry insiders said.

On the other hand, the coastal city in East China also saw an influx of investments from ASEAN members.

A total of $1.54 billion from the region flowed into 522 investment projects in Nantong by the end of 2014.

Dubbed “ship valley”, the city has a well-established shipbuilding industry and is well positioned to access relevant markets in the ASEAN region, which is rich in waterways and has a growing demand for vessels.

Local media reported that 90 percent of cargo in Indonesia is transported by ship. Its Ministry of Industry predicted that the country will need some 4,000 ships during the coming decade. The estimated demand cannot be satisfied by the current production capacity of its own shipbuilding industry.

Haitong Offshore Engineering Equipment Co based in Nantong exported two oil barges each worth $1.85 million to Indonesia, which had tariff reductions of about 1.18 million yuan ($190,419) due to favorable policies in the China-ASEAN Free Trade Area.

Since its establishment in 2010, the free trade area has fueled growth in bilateral trade between China and ASEAN. Trade amounted to $4.99 billion in 2014, up from $1.58 billion in 2009.

Deals with ASEAN members also grew in Nantong during the same period, with its proportion of the city’s total foreign trade rising from 9.7 percent to 15.8 percent.

China and ASEAN are building an upgraded version of the free trade area for promoting further market access and providing more opportunities for industries. Local officials called on exporters to make full use of the area’s policies and increase collaboration with ASEAN.

Contact the writers through dingcongrong@chinadaily.com.cn

 

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