Martket opportunities for Dutch companies in Hebei Province
For Economic Development
MARKET RESEARCH REPORT FOR ZUID-HOLLAND PROVINCE
Shijiazhuang/ Rotterdam
May, 2013
“Market opportunities for Dutch companies in Hebei”
Introduction
Hebei province is economically the sixth larger among the 34 provinces in
China. Its whole area covers about 900,000 square kilometers, with a
population of 72,000,000. The provincial capital is Shijiazhuang, which has
jurisdiction over 11 cities, and 124 counties. The climate is temperate
continental with four distinct seasons. Hebei’s GDP reached 2.65 trillion yuan
($3.3 billion euros) in 2012, and maintained an economic growth rate of 9% in 8
consecutive years without signs of slowing down. In its economic structure,
industry and agriculture form the main pillar. Outstanding industry is iron and
steel (Hebei Iron and Steel Group is China's largest iron and steel group),
pharmacy (including China's largest pharmaceutical group: North China
Pharmaceutical Group), coal (proved reserves ranks 11th in China), port
development (the world's largest bulk cargo port and coal output port
--Qinhuangdao Port), equipment manufacturing, textile etc.
Despite the fast development of its economy, Hebei province is facing an
urgent problem how to upgrade industries structure to improve its international
economic competitive power, and simultaneously reduce pollution and energy
consumption. The present collective leadership of the province has come to
realize the best way is to introduce international advanced technology to its
local corporations. This process will continue for a period of time, generally 1-2
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“Market opportunities for Dutch companies in Hebei”
decades. Besides, the co-development space of tourism, consulting, culture and
other industries are also worth looking forward to. In addition, the Chinese
people have a positive attitude towards the Dutch, helping in creating a
favorable atmosphere for the Sino-Dutch cooperating activities.
Following is an overview of concrete business opportunities between the
two provinces.
Part I, Agriculture Need
Hebei is geographically located around Beijing, therefore is also the main
supply base of vegetables and agricultural products to 20 million Beijing
residents. At present, the main demand of Hebei province agricultural industry
focus on import of good agricultural product seeds, flower cultivation
techniques,
large-scale
greenhouse
vegetable
cultivation
technology,
water-saving irrigation technology etc.
1, the demand list of seed and planting technique
Name
Location
Demand
Contact way
Agricultural
Gaocheng,
covers an area of 10500 acres, to +86-311
High-tech Park in Shijiazhuang the introduction of Holland 88040237
Gaocheng
cucumber, tomato, pepper and No web-site
other 50 kinds of vegetable
3
“Market opportunities for Dutch companies in Hebei”
cultivation technology and 20
kinds
of
flower
cultivation
technology
Shijiazhuang
Deng village A 1000 mu (approximately 67 www.yijiafusho
Hengbang
Luquan,
hectares)
pollution-free p.com
Agriculture Co., Shijiazhuang vegetable base named Yijiafu
Ltd
needs
Dutch
agricultural
large-scale
product
management technology and
vegetable
cultivation
technology
Hebei
Qimei Yongnian
Agriculture
County,
Science
and Handan City
Technology
Ltd
Need to import underground www.hebeiqime
pest
biological
technology
control i.com
86 310 6606296
Co.
Hebei Chun Ze Shexian
Import Dutch ice grape planting 86 310 3925680
Agricultural
technology
County,
Science
and Handan
Technology
Co.
Ltd.
4
No web-site
“Market opportunities for Dutch companies in Hebei”
Shijiazhuang
Sentai
Shijiazhuang import varieties of flowers, www.sentaigard
Garden
plant for sales
en.com
Architectural
Fax ： 86 311
Engineering
83836236
Company
Luquan
city Luquan,Shiji to establish 10,000 mu (approx. www.sjzlq.gov.
goverment
azhuang
667
hectares)
modern cn
agricultural sightseeing garden
and agricultural products deep
processing park on the beach
area of Hutuo river.
Hebei Jing Rui Shijiazhuang Wish to import Dutch flowers 86
Garden
and seeds
Engineering Co.
0
13931151623
No web-site
Ltd.
Hebei
Xingtai Renxian
import characteristic breeds of www.cy-hb.cn
Caiyuan
County,
gardening and project planning 86 319 7510088
Agricultural
Hebei
skills
Development
Xingtai
Company
5
“Market opportunities for Dutch companies in Hebei”
Hengshui Lvyuan Hengshui
import Dutch tulip cultivation 86
flowers Co. Ltd.
techniques
0
15324187917
No web-site
Hebei
Gerun Shijiazhuang import tulip flower seeds and 86
Scenery
cultivation technique
311
86111200
Landscape
www.hebgreen.
Engineering Co.
net
Ltd
Handan Fengfeng Fengfeng
De Yi Company
wish to import new varieties of 86 310 5319999
mining area Dutch
in
flowers,
planting http://hmw0912
Handan technology, need joint venture
city
Hebei
05.chinaw3.co
m
Academy Shijiazhuang to import Holland vegetable www.hebnky.co
of agriculture and
planting tech.
m
forestry
Hebei
Raoyang Raoyang
Wish to introduce greenhouse
county
County,
technology, equipment and the
government
Hengshui
Dutch company to establish
greenhouse cultivation area in
Raoyang
The government Zhangjiakou
to import Dutch potato seeds www.zjk.gov.cn
6
“Market opportunities for Dutch companies in Hebei”
of
Hebei
Zhangjiakou City
and to establish
production
and processing base; import
technology
to
construct
a
million head of dairy cattle
breeding base
In addition, according to the planning of Hebei Province, the 13 counties
around the Chinese capital--Beijing will respectively build a high-grade
vegetable base to meet gigantic Beijing vegetables consumption demand in the
next 3-5 years. One Dutch tech-based vegetable enterprise has been set up at
Sanhe county at present. More potential counties need to be explored.
2. small agricultural machinery
The largest cooperation project in this field so far is Hak (Handan)
agricultural machinery industrial park in Hebei, invested and built by Dutch
Hak group. 250,000,000 Euro has been invested for the first period of the
project in the past two years, and total investment will reach 1,000,000,000
Euro. The main products will be agriculture processing machinery, poultry
slaughtering and meat processing equipment, refrigeration equipment,
vegetable processing equipment, dairy and dairy products processing
production line and food baking line etc. However, this project in south Hebei
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“Market opportunities for Dutch companies in Hebei”
cannot fulfill all analogous demands from the province and its neighbor
provinces such as Henan, Shandong, Shanxi Province, especially high-tech
machinery demand.
Here are some agriculture company's demand information:
Name
Location
Demand
Hebei Jiayuan Shijiazhuang Wish
Contact way
to
Agricultural
processing
Science
equipments
and
import
crops 86
311
machinery 85251422
No web-site
Technology
Co., Ltd.
Hebei
Hengshui
Rongxiang
To
import
agricultural http://rongxi
machinery technology
Agriculture
ang.nongji16
88.com
Machinery
Corp.
Hebei
Food Co.
Deli Xushui
To import corn, pea sowing 86
County,
machine, packing
Baoding
automation
equipment
312
machine, 8791880/879
machinery
and 9222/879108
6
www.delifoo
d.com.cn
8
“Market opportunities for Dutch companies in Hebei”
If the conditions are permitted, a series of agriculture-theme activities will
be organized in the last half year by DSBP, which will create business
opportunities for the agricultural research institutions, enterprises from both
countries. It’s planned to be held in Zuid Holland, in other words, a delegation
composed of government departments, enterprises, agricultural research
institutions, colleges will visit Holland for agriculture tech. It should be pointed
out that, since the two countries climate, soil are different, enterprises that hope
to export crops, flowers, vegetable seeds and cultivation technology to Chinese
need to set up test project in Hebei and provide full technical service to ensure
the success.
Part II, Education Need
A lot of opportunities lie between Hebei province and Zuid Holland
province in education. As a province with a population of about 72,000,000 ,
there are about 450000 high school students to enter the University annually. In
recent years, with China's rapid economic development, rising incomes of
residents, households international vision enhancement, more and more people
support their children to study abroad. The current annual study abroad students
is increasing at a rate of 20%, the number of students in Hebei province in 2012
studying abroad reached more than 15000. Their main destinations are UK,
America, Canada, and New Zealand over the past few years. A new change
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“Market opportunities for Dutch companies in Hebei”
arises in recent two years. Their study destinations begin to extend to the major
European countries. More and more parents want their children to accept a
combination of Chinese and Western style education without leaving or
short-term leave local circumstances. Therefore, three modes of cooperation are
welcome.
The first model of cooperation is joint training plan between Universities.
The main universities in Hebei province are widely expected to establish a joint
training program or joint ventures with foreign well-known colleges. According
to the Chinese education system, college period will take for four years.
Generally Sino-foreign joint international college provides students with
two-year foreign learning opportunities, while two years learn domestically,
and all learning activities are organized by the local school. In Hebei, this
pattern is more popular with college students. The following table shows main
universities professional characteristics and basic situation.
Name
Location
Professional
Remarks
Web-site
characteristics
Hebei
University
Baoding
History,
Be
applying
literature,
National
animation
Education
for
the
design etc.
cooperation
with
the
British
10
to
Ministry
University
the www.hbu.e
of du.cn
of
“Market opportunities for Dutch companies in Hebei”
Central Lancashire
to
set up "Hebei University Central Lancashire Media
and Creative College".
More
Cooperation
is
needed
Agricultura Baoding
agricultural
is currently discussing www.hebau
l
engineering
cooperation in running .edu.cn
University
technology
school with the Royal
of Hebei
for mountain College of Rotterdam on
area
in shipping
port
northern
management,
marine
China
technology,
marine
logistics professional etc.
Flowers
and
other
professional cooperation
needs to be started. More
Cooperation is needed
Hebei
Shijiazhu pharmaceutic
University
ang
of Science
Cooperation is needed
al chemistry,
environmental
11
www.hebus
t.edu.cn
“Market opportunities for Dutch companies in Hebei”
and
engineering,
Technolog
chemical
y
technology,
Yanshan
Qinhuan
mechanical,
University
gdao
chemical,
Cooperation is needed
www.ysu.e
du.cn
material,
control,
information,
equipment
manufacturin
g technology
North
Baoding
electrical and Cooperation is needed
www.ncepu
China
power
.edu.cn
Electric
engineering,
Power
energy
and
University
power
and
mechanical
engineering
Hebei
Shijiazhu biology,
Co-established
Normal
ang
mathematics
"Confucius
and
with Peru Ricardo Palma
University
12
a www.hebtu.
Institute" edu.cn
“Market opportunities for Dutch companies in Hebei”
information,
University
sports,
capital Lima.
resources and
More
in
Peru's
Cooperation
is
environmental needed
science
Hebei
Shijiazhu finance,econo
jointly established two www.heuet.
University
ang
"Confucius Institutes " at edu.cn
mics
of
Kathmandu with Nepal
Economics
University and Zambia
and
University.More
Business
Cooperation is needed
Hebei
Shijiazhu pharmacy,
Medical
ang
University
Cooperation is needed
clinical
www.hebm
u.edu.cn
medicine,
public health,
traditional
Chinese
medical
science
Hebei
Tianjin、 automation
Has established several www.hebut.
University
Langfan
joint
control,
13
projects
training edu.cn
“Market opportunities for Dutch companies in Hebei”
of
g
Technolog
material
international
chemistry
with Florida International
y
Bachelor
University,
St.
Cloud
State
University,
York
State
New
University
(Binghamton),
Western
Case
Reserve
University from Amrica;
University
of
Dundee ,University of
Swansea,
Edinburgh
Napier University from
Britain;
Massey
University
from
New
Zealand;
Academy
of
computer
science
in
Paris ,France
The above mentioned Universities hope to enhance internationalization
degree and professional education, through Sino-cooperation in running
schools. Famous colleges such as Holland University, The Hague University,
University of Groningen, Leiden University are especially welcomed.
14
“Market opportunities for Dutch companies in Hebei”
Cooperation chances also exist in other 20 more colleges located in secondary
cities.
The second model is the establishment of special high school with Holland
international classes, i.e. create chances for Hebei local senior high school
students to enter designated Dutch universities for further education directly,
providing that they passed the qualification test. By this way, the “seamless”
connection between Chinese high school students and Holland University can
be realized. Moreover, this education model can also be applied in Beijing and
Tianjin area, which are near to Hebei. At present, this field is still blank.
The third model is vocational and technical training. Besides higher
education, the Chinese government also attaches great importance to the
vocational and technical education and training, so as to cultivate labours in
different fields more quickly and directly. Up to now, there are two successful
cases in cooperation about vocational education between these two provinces.
One is the cooperation between Tangshan Industrial Vocational Technical
College and the Royal Institute of Shipping in Rotterdam with the matchmaking
of the local government, the purpose of which is to cultivate practical labours in
port logistics and port management in the Caofeidian campus; the other is the
cooperation between Baoding Women’s Vocational High School in Hebei and
the Institute of Alberta in Netherlands, the purpose of which is to jointly train
hotel service professionals. These two projects have played a good
15
“Market opportunities for Dutch companies in Hebei”
demonstration effect, and cooperative training in fields of agriculture, flowers,
port and service industry cooperation has a bright future and vast space for
development.
PART III. PORT AND CITY CONSTRUCTION NEED
1. The port construction plan of Hebei.
Hebei province is one of the provinces that have the most complete
geomorphic features in China, including the plain, hills, mountains, plateau and
ocean. As a province close to Bohai, there are three famous ports: Port of
Qinhuangdao - the world's largest bulk cargo port and coal export port;
Tangshan Caofeidian Port - the largest port in North China (level -25 metres
below), which is built into the major dredging port for iron ore, coal, oil, natural
gas and other energy raw materials in northern China, a world-class heavy
chemical industry base and the national commercial energy storage and
distribution center of China; Huanghua Port - the only way of the new channel
to get through the Eurasian Continental Bridge and the most convenient access
to the sea for Shanxi, Hebei, Shandong, Henan provinces and the northwest of
China. At present, these three ports are under the management of the Hebei Port
Group established in 2009; the annual throughput of the three ports reaches
close to 400 million tons.
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“Market opportunities for Dutch companies in Hebei”
In recent years, Southern Holland province and Qinhuangdao city of Hebei
province has maintained close communication with each other. South Holland
province and Hebei Port Group signed a memorandum by the end of August
2012. In spite of this, substantive steps have not been made towards specific
cooperation, the Sino-Dutch cooperation is still in the discussion stage. As the
world's third largest port and the largest energy port in North China, the
cooperation between Rotterdam and Caofeidian port contains rich opportunity.
Seen from the current and future period, business opportunities about port
construction between these two provinces mainly concentrated in the following
areas:
(1) The industry construction of Caofeidian port. According to the
development positioning of Caofeidian Industrial Zone and Caofeidian port,
Caofeidian will mainly focus on the development of iron and steel, chemicals,
electric power, equipment manufacturing, shipbuilding, seawater desalination,
building materials and tourism industry. Enterprises and personnel of the above
relevant industries are welcomed. In addition, there is great room for
cooperation in the logistics field, i.e. the interflow of goods and materials.
Caofeidian is planning to build more than 100 containers and bulk berths for ore,
crude oil, coal and LNG, the handling capacity of which will reach 500 million
tons. In order to promote the formation of the industrial zone about modern port
17
“Market opportunities for Dutch companies in Hebei”
logistics industry as soon as possible, the local government department hopes to
cooperate with Dutch port logistics enterprises and logistics industry experts.
(2) Construction and management of the port. At present, Caofeidian and
the coal district of the Huanghua port are still in the development stage, which
need a lot of experts on shoreline management, port construction, operation
management, port maintenance etc. Enterprises and experts that have
construction and management experience in port engineering and waterway
management are welcomed.
(3) The development of industries near port. Holland Rotterdam port is a
successful model of near-port industries, whose successful development model
for the formation of its industry park is worth learning and referring to.
Developing industrial investment projects near the port has become the trend of
development and the near-port industries of the three big ports in Hebei, that is
presenting a situation of accelerated development. This plays a positive role in
promoting the development of the ports. Cooperation and communications on
the construction of the port industry zone and the development of near-port
industries are expected to be strengthened, so as to carry out in-depth study on
the coordinated development model for port industry layout and near-port
industries.
(4) Port management and personnel training. As the world's third largest
port, Rotterdam has rich management experience and management personnel.
18
“Market opportunities for Dutch companies in Hebei”
The Holland part is hoped to be of help in the cultivation of high-quality
management personnel so as to improve the level and quality of the service
provided by the port.
(5) The marine transportation project of Huanghua port. This project plans
to purchase 1 ship of 10000 tons of bulk cargo ship, 2 ships of 5000 tons of bulk
cargo ship, 2 ship of 3000 tons bulk carrier, which will mainly engage in coastal
bulk cargo transportation. The main goal harbors include Tianjin port, Dalian
Port, Yantai port, Qingdao port, Wenzhou port, Shanghai port, Guangzhou port
and so on. The goods transported are mainly coal, grain, iron and steel, salt,
chemical raw materials, machinery, iron ore and other goods. The project is
expected to invest 13,300,000 US dollars and use foreign capital of 10,000,000
dollars. The investment is expected to be repayed within 5-6 years.
Hebei Port Group will be responsible for related port cooperation affairs.
Web-site: www.porthebei.com.
2. City Construction Aspect.
According to the provincial planning of Hebei, five new districts will be
built within the next 5 years. They are the Zhengding New District in provincial
capital-Shijiazhuang, South-Hebei District of Handan city, Caofeidian New
District of Tangshan city, Beidaihe New District of Qinhuangdao city and
Bohai New District of Cangzhou City.
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“Market opportunities for Dutch companies in Hebei”
Zhengding New District locates on the north shore of Hutuo river,
consisting of Zhengding County ,a historically and culturally famous place ,and
its eastern area; the planned construction land use is 135 square kilometers in
total with a planned population of 1,400,000. The new district is planned to be a
city of low carbon, ecological and with wisdom, which will function as the
carrier of the future new industries and high-end service industry in Hebei
province. It will also become the administrative and cultural center, the modern
service industry base, and the agglomeration district of science and technology
innovation. The New District started construction in May 2011. The six major
industrial areas in the planned industrial structure layout include the central
business district, the creative and tourism business district, science and
technology innovation area, district for business R & D industry, district for
high-tech industry and the district for traditionally advantageous industry. The
historical and cultural city of the ancient Zhengding city locates on the west side
of the Zhengding New District and Hutuo River, Shijiazhuang's mother river,
on its south side. This will enable Shijiazhuang to become a real waterfront city
and help to improve the city environment and its grade. Zhengding is also the
place, where Xi Jinping, the president and the general secretary of the CPC
Central Committee of China, had been worked ever. Therefore, the construction
of the new district receives strong support from the central government. After
completion, Shijiazhuang city will experience tremendous changes. The
20
“Market opportunities for Dutch companies in Hebei”
opportunity to cooperate with Holland focuses on two aspects: one is about
consulting and design services for the designing & construction of roads and
bridges, the designing of water supply and drainage system and ecological
landscape, and also for the field of city management; the other is that Holland
enterprises may setup branches there as its headquarters in China, considering
the geographical convenience of the new district (only 240 kilometers away
from Beijing) and its perfect infrastructure and the preferential tax policy. The
planning map of Zhengding New district is as follows:
21
“Market opportunities for Dutch companies in Hebei”
Jinan(South-Hebei) District of Handan is located in the historically cultural
city and the steel capital of Handan in southen Hebei province, which is the
third strategic new district approved by the Hebei province government. The
specific location is in the south of Handan City, covering the core area and the
coordination area, with a total area of 600 square kilometers and planned
investment of RMB 80,000,000,000. The core area is planned to expand on both
sides of the Anfeng(Chengan county-Fengfeng county) road with an area of 150
square kilometers. The coordination area, with Handan South Road to its
northern side and Cixian County to its southern side, including Zhanghe
ecological science and Technology Park, covers an area of 450 square
kilometers. The New District lies in the junction of four provinces, Shanxi,
Henan, Shandong and Hebei, the main function of which is for the coal and iron
& steel industry, agriculture and tourism, equipment manufacturing, modern
logistics and so on. The industrial park constructed by Holland's Hark group
above mentioned belongs to the equipment manufacturing part. Future
cooperation with Holland mainly concentrates in the field of planning and
design, operation management, investment in infrastructure, logistics
management technology and sightseeing agricultural technologies. This new
district is in urgent need of the mature European equipment manufacturing,
ecological technology, infrastructure management, logistics management and
22
“Market opportunities for Dutch companies in Hebei”
agricultural technology. The planning map and industrial structure distribution
diagram of Handan Jinan District are as follows:
Caofeidian New District, based on the construction of Caofeidian port, is
the first strategic development zone approved by the government of Hebei
province in October 2010. It is located in the south coast of Tangshan City, with
Tangshan City Caofeidian Industrial Zone, Nanpu Economic Development
Zone, Tanghai county and Caofeidian New District now under its jurisdiction.
The planned area is 1943.72 square kilometers and the coastline is about 80
23
“Market opportunities for Dutch companies in Hebei”
kilometers. The resident population is about 200,000. It will function as the
dredging port for bulk goods like energy ore, the new industrial base, the
commercial energy reserve base, the national recycling economy demonstration
area, northern business and leisure capital of China and the ecologically livable
coastal city. The provincial government plans to build an international port of
world class here and build four industrial chains, including port logistics, steel
products, chemical industry and equipment manufacturing, with a total
investment of over RMB 200,000,000,000. This new district carries out a wide
range of investment activities and a group of enterprises from Taiwan,
Hongkong and South Korean carry out investment projects in the district. At
present, the business opportunities in this district are mainly in chemical
industry, logistics, equipment manufacturing and ecological city design and
development. Holland enterprises in related fields are welcomed to make
investment in this district. The planning map of Caofeidian New District is as
follows:
24
“Market opportunities for Dutch companies in Hebei”
Beidaihe District of Qinhuangdao city is on the west coast of Qinhuangdao,
established in December 2006 with the approvement of the Hebei Province
Government. The new district and the Beidaihe district are on either side of
Beidaihe river. The planned area is 425.81 square kilometers, with a coastline
of 82 kilometers. It is one of the first batches of national wisdom pilot cities
approved by the Chinese Ministry of Construction; later, it is promopted as one
of the national strategy development zones. It is positioned as a district for
ecological science and technology R & D, cultural creative themes,
comprehensive convention and exhibition economy, leisure tourism,
headquarters economic base etc. Beidaihe New District has the best beach in
northern China, the world's rare marine desert and North China's largest
25
“Market opportunities for Dutch companies in Hebei”
lagoon-seven Caspian Sea; it also has 220000 acres of mountain lush forest,
known as one of the eight most beautiful coastlines in China. The business
opportunities of the region with Holland are mainly in areas like the
development of tourism resources, marine biology, culture, environment and
other fields. Holland enterprises and institutions in relevant areas are welcomed
to Beidaihe New District to carry out business negotiations and investments.
The planning map of Beidaihe New District is as follows:
26
“Market opportunities for Dutch companies in Hebei”
Cangzhou Bohai New District was established in July 2007, with Bohai sea
in the east, Beijing and Tianjin in the north, Shandong Peninsula and Liaodong
27
“Market opportunities for Dutch companies in Hebei”
Peninsula across the sea. It is, together with Tianjin Binhai New Area, located
around the Bohai center zone. It is also the important coastal strategy, built by
Hebei province as a whole. One city and three Parks are under the jurisdiction
of the New District, that is, Huanghua city, ZOJE Industrial Park, Nandagang
Industrial Park and the near-port Economic and Technological Development
Zone (national level development zone). Its total area is 2,400 square km, with a
population of 600,000 and coastline of 130 km. Its location, resources and
traffic advantages are all very outstanding. In October 2011, it officially rose to
a national strategy development zone. By the end of 2012, Bohai New District
has completed infrastructure investment of RMB 200,000,000,000. In addition
to the port (Huanghua), the main function of Bohai New District is to build a
new industrial system in the pattern of circular economy, which is also made to
be its main development direction and strategic task. The new district will
strengthen the leading industries, such as equipment manufacturing,
petrochemical, electric power and modern logistics; it will also make efforts to
build the “chemical industry base of North China ”, the “iron and steel industrial
base of South China”, the “China pipeline equipment manufacturing base”, the
“important energy base of North China” and the “internationalized regional
logistics center”. Up to now, there are 326 key projects in Bohai New District
(each carries an investment of over one billion), with a total investment of RMB
805,030,000,000. Among them, 89 projects are under construction, with a total
28
“Market opportunities for Dutch companies in Hebei”
investment of RMB 111,020,000,000; 93 projects are planning to be built, with
a total investment of RMB 135,160,000,000; 144 projects are in the stage of
pre-planning, with a total investment of RMB 558,850,000,000. Air Liquide
Welding, the Grain and Oil company of Cargill (United States), the
Thermoelectric of Hongkong Huarun, the Cold Rolled Plate of the CFHI,
400,000 vehicles of BAIC group, the Electric Power of Guohua, the CBD of
AVIC, the green circulating industry clusters of CLP and many other projects of
the state-owned or state-holding companies and enterprises that rank among the
"National 500" or even the "World 500" have been carried out one after another
and maintain a good momentum. Presently, the invitation for Holland
investment in this new district focus on the desalination of sea water and the
construction of water supply project. The water supply project is to get water
from the end of the irrigation area in Binzhou city of Shandong province
through small rivers dug specially for this purpose; then the Yellow River water
will be pumped to Haixing county, through the pressure pipeline, in the
pumping station newly built in WuXian county in Botou. Reservoirs will be
constructed in the former site of Yangcheng reservoir and its eastern side, the
long-term planned reservoir capacity of which is 100,000,000 cubic meters. The
first stage is of the project 40,000,000 cubic meters, and pumping station will be
built in the north embankment of the reservoir, where water will be pumped to
the new district through the pressure pipeline.
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“Market opportunities for Dutch companies in Hebei”
(1)Planning of the total reservoir capacity of 100,000,000 cubic meters: the
project covers an area of 48152 acres; the total reservoir storage capacity is
102,000,000 cubic meters and storage will be made once a year, the total annual
water volume is 89,300,000 cubic meters; the water diversion line is built with 4
rows of DN1600 GRP sand pipe, with a total length of 11.76 kilometers; the
water supply pipeline is built with 4 rows of DN800 polyethylene pipeline, and
its total length reaches 10.9 kilometers; the length of the cofferdam is 23.49 km;
the designed flow rate of the water diversion pump station is 10 m ³/s, and the
flow rate of the water supply pump station is 2.3 m ³/s. Upon completion of the
project, the daily diverted amount of water is 864000 cubic meters and the daily
water supply capacity is 200,000 cubic meters.
(2)The first-stage storage capacity is designed to be 40,000,000 cubic
meters: the project covers an area of 18,017 acres, with a total reservoir capacity
of 40,350,000 cubic meters; the water storage will be made twice a year, and the
annual total volume of the diverted water reaches 70,700,000 cubic meters; the
water diversion line is built with 3 rows of DN1600 GRP sand pipe, with a total
length of 11.76 kilometers; the water supply pipeline is built with double
polyethylene pipe of DN800, with a length of 10.9 km; the cofferdam is of a
length of 12.67 km; the designed water flow of the pump station design is 8 m
³/s, and that of the water supply station is 1.66 m ³/s. Upon
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completion of the
“Market opportunities for Dutch companies in Hebei”
project, the daily diverted amount of water is 691,200 cubic meters and the
daily water supply capacity is 120,000 cubic meters.
The total investment of the project is $152,950,000 (the land expropriation
is estimated to be $1,026 / acre). In the first phase, the designed capacity is
40,000,000 cubic meters and the investment is $71,670,000, $60,000,000 of
which is planned to use foreign capital.
By preliminary estimates, the internal rate of return of the projects in the
first phase is 15.5% and the economic benefit & cost ratio is 1.73. The
economic internal rate of return is higher than the social discount rate; the NPV
of the project is above zero; the economic benefit & cost ratio is greater than 1.
The results of the three evaluations mentioned above show that the project is
feasible in economy.
The planning map of Bohai New District is as follows:
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“Market opportunities for Dutch companies in Hebei”
Whether in the area of port or of city construction, fields for cooperation are
very extensive and more mutual understanding and negotiations are needed.
Hebei province is currently in the accelerated development of urbanization and
industrialization. Therefore, foreign capital and advanced technology need to be
introduced to play their role in the development of the industries, which also
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“Market opportunities for Dutch companies in Hebei”
poses as a good opportunity for Holland industries such as petrochemical
industry, port management, shipbuilding, steel processing etc. Over the past
few years, internationally well-known enterprises like Tokuwa and Nautilus
participated in the project bidding. Among them, DHV and Cohn & Wolfe
participated in the planning and designing of the projects of Caofeidia
international eco-city, Caofeidia vocational education center and the ecological
city and the industrial area of Bohai New Area; High Park conducted in-depth
discussions with Langfang city on the ecological planning of the city and on the
construction of modern agriculture, which recently participates in the planning
and designing of Huck (Handan) Agricultural Industrial Park. More and more
Holland enterprises are welcomed to participate in the port and in the city
planning and construction in Hebei province.
PART IV. FINANCE NEED
Up to now, cooperation between South Holland and Hebei Province in the
financial sector has not yet been started. Currently, the financial institutions in
Hebei province are mainly divided into three parts, the state-owned commercial
banks, national joint-stock banks and local banks. In addition to HSBC and
Bank of East Asia, both coming from Hongkong, there are still no foreign banks
in the strict sense in Hebei province. In the field of insurance, there are only four
Sino-foreign joint-venture insurance companies and there is no completely
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“Market opportunities for Dutch companies in Hebei”
foreign insurance company. Two main reasons contribute to the above situation:
one is that the economy in Hebei province is not as developed as Shanghai,
Beijing and so on, and poor propaganda had been made to the developed
countries. the other is that Shijiazhuang, as its capital, is a newly built city
with the establishment of PRC and foreign financial institutions do not know
well about this city.
According to the famous Hurun rich list in China in 2012, rich people with
an asset of over RMB 2,000,000,000 in Hebei has accounted for 5% of the total
number, who mainly live in Shijiazhuang, Baoding, Langfang and Tangshan
city of Hebei province. By the end of 2012, the resident savings deposits have
exceeded 20 trillion RMB in Hebei province. Hebei government hopes to
introduce 5 foreign banks or so in 2015. Among all the banks in Holland, only
Bank of Holland has more than 20 branches in China presently (none in Hebei).
The Hebei provincial government greatly welcomes the Bank of Holland
(ABN-AMRO), Holland International Group (ING), the Holland Cooperation
Bank (Rabobank), FORTIS Bank and Holland national insurance company,
AEGON insurance companies to set up branches and invest in local banks &
insurance companies in Hebei province.
PART V
WATER CONSERVANCY & ENVIRONMENTAL
PROTECTION
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“Market opportunities for Dutch companies in Hebei”
Currently, cooperation between South Holland and Hebei Province in this
field is mainly in research and scientific communication. Since the
establishment of the regular communication mechanism on water conservancy
and environmental protection technology research, two sessions of water
environmental protection seminars have been successfully held in three years
by South Holland and Hebei Province, in which beneficial communications
have been made on key issues such as the clean development mechanism,
carbon emissions trading, the emission permit system, airborne particulate
monitoring and dust control etc.. Holland has long accumulated rich experience
and technology on the pollution control for groundwater and air. The Water
Conservancy Department of South Holland and Hebei Province have signed the
“Letter of Intent on the Demonstration Project of Monitoring and Management
of Groundwater”, which strengthens cooperation on groundwater management
between the two provinces. Hengshui city has signed the "Memorandum of
Understanding on Pilot Research on the Rational Utilization of Hengshui
Wetland in Hebei Province" with the ATRA Institute of Wageningen
University and Wetlands International-China Project Office. These agreements
play an important role in the promotion of cooperation on environmental
protection between these two counties. Future cooperation will focus on the
following two aspects: one is the pollution monitoring and control of
groundwater; the other is the air pollution control. Due to the air pollution
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“Market opportunities for Dutch companies in Hebei”
influence of Beijing, the air pollution problem is becoming increasingly
prominent in many cities and counties in Hebei: the PM2.5 and PM10 have
exceeded the standard and many cities are in the state of moderate pollution
state. According to a survey named “Investigation and Evaluation on the
Groundwater Pollution in North China Plain ”, which is carried out by the
hydrological & geological environment research branch of Chinese Academy
of Geological Sciences Institute , the quality of the shallow groundwater quality
in North China Plain, where Hebei is located, is poor as a whole and there is
almost no I-class groundwater. The survey also shows that I-class and II-class
water that can be directly drunk without further processing only account for
22.2%, while V-class water that can be used after special processing accounts
for more than 56.55%. Therefore, the government of Hebei province and the
public have a strong need to improve the environment. However, Hebei is still
relatively backward in environmental protection technology and need to
introduce Holland technology and related equipment on wastewater treatment
and air pollution control. There are 5 specific projects in urgent needs: (1)
technology cooperation on non-point source pollution control of the upstream
of Gangnan Reservoir and Huangbizhuang Reservoir (the source of drinking
water for Shijiazhuang city) and greenhouse water-saving irrigation; (2)
technology cooperation on the USBA project to build China National
Pharmaceutical Wastewater Treatment Centre between Hebei Province
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“Market opportunities for Dutch companies in Hebei”
Environmental Science Research Institute and Holland Wageningen University;
(3) environmental protection management and technical personnel exchange
and training between these two provinces; (4) introduction of efficient
agricultural water-saving irrigation technology in the dam area of Zhangjiakou
City; (5) the groundwater monitoring and treatment demonstration project in
Hebei Province. The above projects will all be managed and led by the Water
Resources Department of Hebei province.
PART VI
MEDICAL REHABILITATION
According to the planning of Hebei province, an economic circle adjacent to
the national capital-Beijing will be built; medical care and leisure service
system will also be established in areas adjacent to Beijing. Currently, most of
hospitals in Hebei province belong to the local medical university or the health
department of the local government; there is in great lack of internationalized
medical institutions. So far, only Yanjiao town of Langfang City, adjacent to
the eastern side of Beijing, established the first Sino-French joint venture of
Yanda International Hospital (health park) in Hebei province, which introduces
the concept of international medical rehabilitation. Many medical institutions
are willing to expand the scope of services cooperatively with international
medical institutions. At the same time, large numbers of Chinese traditional
medicine hospitals want to spread Chinese traditional medicine technology to
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“Market opportunities for Dutch companies in Hebei”
Holland and invest medical institutions with Chinese characteristics in Holland.
Of course, according to relevant provisions of the EU, Chinese herbal medicine
still cannot enter into Europe as drugs, but as the health products and food.
Since that Hebei currently has more than 60 three-level of first-class
hospitals (China's highest level of hospital) and Chinese medicine hospitals,
and that Holland has the world's most advanced medical technology, therefore,
communication needs to be strengthened by both sides. The specific model for
cooperation can be as follows: (1) direct investment to set up joint venture
medical institutions in each other’s city; (2) cooperatively setting up schools
offering education training; (3) assisting Hebei in improving grassroots medical
and health facilities with Holland’s own advantages. The Sino-Dutch
government has reached a common understanding on medical cooperation.
Medical institutions in Holland are welcome to visit and choose medical
organization for cooperation in Hebei province.
In addition, as the drug city in northern China, there are many
pharmaceutical enterprises in Shijiazhuang. There are many investment
opportunities for cooperation between both sides, for example, North China
Pharmaceutical Corporation once introduced technology from DSM company
of Holland. There are similar demands in Shijiazhuang Pharmaceutical
Corporation, Yiling Pharmaceutical Corporation etc..
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“Market opportunities for Dutch companies in Hebei”
PART VII
MEDIA
Almost every Chinese know and love " The Voice of China", which is a
large professional music commentary and motivational program jointly
produced by Zhejiang TV and Star Group Limited and ranks NO.1 in the
national rating in 2012. The initial inspiration of the program comes from the
Holland program "The Voice of Holland". Presently, there are 7 channels and
more than 100 columns in Hebei TV station, while the rating of most of them
are not good; therefore, the television station greatly hope to introduce new
programs, investment and planning business. Holland has accumulated rich
experience in television and radio media. As long as there are good ideas and
investment, cooperation between the two sides will encounter no obstacles.
PART VIII
TOURISM AND INVESTMENT IMMIGRATION
As an important member of the European Union, Holland is rich in tourism
resources. As a province with the most varied landscapes in China, Hebei
province is also rich in tourist resources. Cooperation between the two sides
mainly focuses on the sharing of resources between tourism companies:
Holland's tourism resources can be extended from scenic tourist to business and
industry visits and university study tours, while individuals in Hebei are willing
to learn about information and policies on investment immigration and the
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“Market opportunities for Dutch companies in Hebei”
purchase of real estate in Holland and hope to get the opportunity of
immigration.
The above is only the first batch of information about Hebei’s market
demand. With the development of the exchange activities of DSBP in Hebei, we
will provide more and more information about business cooperation and we are
looking forward to your attention.
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