Economic zones to expand partnership with ASEAN

The construction of cross-border economic zones for trade between China and ASEAN will be the highlight of a forum scheduled for Sept 21 in Nanning, capital of the Guangxi Zhuang autonomous region.

Representatives from the political, academic and business circles of China and member countries of the Association of Southeast Asian Nations will gather in Nanning for the China-ASEAN Expo from Sept 21 to 25.

At the meeting, leaders are expected to further explore new cooperative modes and promote collaboration among all parties involved.

Geographically positioned to act as a window for Chinese cooperation with ASEAN countries, Guangxi is the direct beneficiary of the boom in trade among the nations.

The autonomous region has witnessed remarkable changes since the free trade area was set up in 2010.

Trade with ASEAN has always been an important part of Guangxi's economic development. Since the establishment of the free trade area, more and more preferential policies have been introduced to attract investment. As a result, investment and trade have soared between Guangxi and ASEAN.

ASEAN has been the most important trade partner of Guangxi for years. It is also the major investment destination and the second biggest investment source for the autonomous region.

Guangxi's trade volume with ASEAN grew from $1 billion in 2004 to $9.5 billion last year, an average year-on-year increase of 36 percent.

Trade with ASEAN now accounts for 41 percent of the total trade of Guangxi, up from 23 percent in 2004.

ASEAN has been the No 1 trade partner of Guangxi for 12 years.

Notably, in 2011, trade volume between Guangxi and Vietnam reached $7.6 billion, accounting for nearly one-third of the autonomous region's foreign trade. It is also one-fifth of the total trade volume between China and Vietnam.

Guangxi has also been successful at attracting investment from ASEAN. Actually utilized investment from ASEAN skyrocketed from $24 million in 2004 to $229 million, an average annual increase of 38 percent.

ASEAN is now the second largest investor in Guangxi. The first is Hong Kong.

Investors from ASEAN have diversified their investment in Guangxi in recent year.

In addition to traditional favorite targets for investment, such as transportation and real estate, they now are increasing investment in the fields of manufacturing and fishing, husbandry and services.

Guangxi has also stepped up its investment in ASEAN member countries. Contractual investment from investors in Guangxi surged to $175 million last year from a mere $3.7 million in 2004, a stunning average annual increase of 73 percent.

The major destinations include Vietnam, Indonesia, Laos and Cambodia, and investments mainly focus on mining, agricultural product processing as well as light industry.

Guangxi and ASEAN have further deepened their partnership through the construction of a series of large projects.

In agriculture, Yulin city in Guangxi will launch a program to introduce new rice-planting methods developed in Brunei.

Guangxi Mingyang Biochemical, a leading agricultural products processing company in Nanning, has set up a large project to process cassava in Vietnam. Guangxi Guohong Development Corporation has a rice-processing base in Cambodia.

In terms of light industry, Singapore-based Viterra Asia Pte Ltd has invested in a plant to produce maple edible oil in Fangchenggang in Guangxi.

With regard to education and cultural exchanges, Guangxi has hosted more than 20 training programs for young officials from ASEAN member states.

At present, there are more than 5,000 students from ASEAN member nations studying in Guangxi. More than 5,000 students from Guangxi also go to universities in ASEAN member countries each year.

zhuanti@chinadaily.com.cn