Facts & Figures (2007)
| Rating | |
| Year of Establishment | 1993 |
| Land Area | 3.4 km2 |
| Location | East of Hangzhou, Zhejiang |
| GDP | RMB 25.3 billion (US$3.4 billion), 19.3% up |
| FDI | US$750 million |
| Utilized FDI | US$415 million, 9.2% up |
| Major Investors | Toshiba, Panasonic, Siemens, Bosch, Pepsi, Motorola, Mitsubishi, LG, Coca Cola, Bayer, Danone, Yokohama, Yazaki, CIAT, Kose, Alcoa, HLR, HAT, SET, Joplax, Asahi KASEI |
| Major Industries Encouraged | Machinery, electronics, biology & pharmaceutics, textiles & chemical fibers, food & beverage |
Source: Hangzhou Economic and Technological Development Zone
Introduction
Hangzhou Economic and Technological Development Zone (Hangzhou ETDZ), approved by the State Council in 1993,
has a planned area of 3.4 km2. It is located in eastern Hangzhou city, 19 km from its downtown area and 15 km from the Hangzhou Xiaoshan International Airport, which operates 149 domestic airlines and 32 overseas airlines weekly. Hangzhou ETDZ is located approximately the same distance from Shanghai, Suzhou, Shaoxing and Ningbo, which are a 1.5-hour drive away. Additionally, it is close to Ningbo-Zhoushan Port and Shanghai Port – the two largest deepwater ports in China.
The central axis of Zhejiang province’s expressways was built in the zone, connecting the Hangzhou-Nanjing, Shanghai-Hangzhou, Hangzhou-Jinhua -Quzhou and Hangzhou-Ningbozhou Expressways. It also has a well-established railway network, as the Shanghai-Hangzhou, Zhejiang-Jiangxi, Xiaoshan-Ningbo and Xuancheng-Hangzhou railways intersect in Hangzhou city.
With 14 colleges and universities in Hangzhou ETDZ, the zone contains a large talent pool. It also established human resource bases in over 10 locations, with the capacity to supply more than 50,000 skilled persons per year.
Investment Climate
After fifteen years of development, Hangzhou ETDZ has become an important industrial cluster in Hangzhou. Its major industries include machinery, electronics, biology and pharmaceutics, textiles and chemical fibers, and food and beverage. Within the development zone, it has set up the Singapore-Hangzhou Science & Technological Park, the Modern Logistics Park, the High-tech Incubator, Innovation Industrial Park of Higher Educational Zone and New Medical Industrial Base.
In 2007, the zone’s GDP increased by 19.3% year-on-year to RMB 25.3 billion, accounting for 5% of Hangzhou’s GDP. The industrial output value from this zone rose 9.77% from the year before to RMB 123.8 billion, while industrial output value from major industries hit RMB 86.7 billion, accounting for over 70% of the zone’s total.
The total foreign trade value hit US$10.3 billion, consisting of US$4.1 billion from import and US$6.2 billion of export. Products from this zone were exported mainly to the U.S., Japan and the EU.
By the end of 2007, Hangzhou ETDZ attracted investments from fifty-two Fortune 500 enterprises, including Coco Cola and Motorola from the U.S., Toshiba and Panasonic from Japan, and Siemens from Germany. It is also home to domestically renowned large firms, such as Wahaha, Zhejiang University Shengmin Pharmaceutics and Bafang Logistics.
High-tech industries maintain an important role in the district’s economic development. By the end of 2007, there were thirty-nine R&D centers in Hangzhou ETDZ and forty-four high-tech enterprises. The industrial output value from high-tech sectors stood at RMB 77.2 billion, accounting for 62.4% of the zone’s total.
Investment Costs
Land Costs
| Area | Purchasing Price (RMB/m2) |
| Level 1 Zhonghe Road; South: Hefang Street, Border of West Lake Reserve; West: Tiyuchang Road, West Section of City Ring, Miduqiao Road, Great Canal, Overhead Viaduct | 1,530 |
| Level 2 East: Dongxi Road, East Section of City Ring, Railway, Jiangcheng Road; South: Wansongling Road, Border of West Lake Reserve; West: Shuguang Road, Border of West Lake Reserve, Yugu Road, Tianmushan Road, Jiaogong Road; North: Wenshan Road, Wenhui Road, Shangtang Road, Chaohui Road | 1,220 |
| Level 3 East: Shaoxing Road, Wenhui Road, Airport Road, West of Genshan Road, North of Qiutao Road, Qingchun Road; South: Qiangtang River, Lower part of Zhonghe Road, Border of West Lake Reserve; West: Yugu Road, Yuxi Road, Guicui Road; North: Wenyi Road, Desheng Road | 970 |
| Level 4 Northern Part: East:: Great Canal; South: Qiantang River; West: Yuxi Road, Zijinhua Road; North: Yutang River, Great Canal, Huzhou Road, Shaoxing Road, Xiangjishi Road, Dongxin Road, Desheng Road, the intersection of Caowang Road and Shiqiao Road Southern Part: East: Fuxi Bridge; South: Qiantang River; North & West: Border of West Lake Reserve |
750 |
| Level 5 Northern Part:: East: to the railway; South: Qiantang River; West Xixi Road, Border of Xixi Reserve, Zijingang School of Zhejiang University; North: Guihua Road, North Railway Station, Xitang River, Guihua Dinghai Road, Great Canal, Shixiang Road, Dongxin Road, Zhonggong Road, to the railway Southern Shore of Qiantang River, Xiaoshan District |
390 |
| Level 6 Northern Part (excluding Level 5), Southern Shore of Qiantang River (excluding Level 5), Zhijiang National Holiday Reserve | 300 |
Source: Department of Land & Resources of Hangzhou Municipality, 2004
Utility Costs
| Purpose of Usage | Electricity (1kv-10kv) (RMB/kwh) | Water (RMB/m3) | Waste Water Treatment Fees (RMB/m3) | Gas (RMB/m3) |
| Residential | N.A. | 1.35 | 0.50 | 2.4 |
| Government | N.A. | 2.00 | 1.50 | 3.0 |
| Commercial | N.A. | 1.9 | 1.50 | 3.0 |
| Industrial | 0.556 | 1.75 | 1.80 | 3.0 |
| Others | N.A. | 4.0 | 1.50 | 3.0 |
Source: Management Commission of Hangzhou Economic and Technological Development Zone, China Water, Hangzhou Gas
Logistic Costs
Air Freight Costs (RMB/Kg)
| Seoul | Taipei | Singapore | Sydney | |
| Hangzhou | 12 | 10.50 | 14.00 | 31.5 |
Source: Hangzhou Xiaoshan International Airport (based on the prices of Air China)
Labor Costs
Reference Salary at Labor Market
| Average Wage (RMB/month) | |
| Junior | 900-1,300 |
| Technicians | 1,300-3,000 |
| Engineers | 2,500-8,000 |
| Senior Management Staff | Flexible |
| Regulated Lowest Wage | 850 in city, 750 in Xiaoshan District |
Source: Administrative Committee of Hangzhou Economic and Technological Development Zone
Winning Edge
- Well-established industrial and economic base
- Advantageous geographic location. As a coastal city, its land, air and waterway traffic system is quite advanced.
- Rich human resources.
- The Export Processing Zone is also located in this area, providing convenient and fast customs policies.
Limitations
- Strong competition from the neighboring city of Ningbo, which boasts an economy strongly boosted by the world-class Ningbo-Zhoushan port.
- Relatively high operating and labor costs.
- The export-oriented small and medium-sized enterprises are easily affected by foreign economic development and foreign exchange rates.
- Scarcity of mineral resources and shortage of gas and electricity.
The Administration Committee
- Address: Yindu Mansion (Xiasha), Hangzhou Economic and Technological Development Zone, Hangzhou 310018, Zhejiang Province
- Tel: 86-571-86913653
- Fax: 86-573-86919973
- Website: http://www.heda.gov.cn/, http://www.hzqt.net/
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You are welcome and thanks for the feedback, keeps us motivated!
We will continue putting effort to inform the public as good as possible about what’s going on in China.
FYI, we do translate the most interesting articles in the most spoken world languages (like Chinese, French & German).
Kind regards,
Dieter Vanonckelen
Marketing Manager Maxxelli.