Investment in Hunan
Area: 210,000 square km
Population: 64.28 million
Capital City: Changsha
Major Cities: Changde, Dayong, Hengyang, Xiangtan and Zhangjiajie
GDP: 647.361 billion RMB (2005)
GDP per capita: 10,366 RMB
Investing in Hunan Province
Foreign Direct Investment (FDI) has been on a steady increase in Hunan Province for some years now. By the end of 2005 FDI realised in monetary terms was approximately US$ 2,072 million and 38 of the worldâ€™s 500 largest companies had established businesses in the province. Also in that year overseas projects and labour contracts signed in Hunan was valued at approximately US$ 865 million, this up 40.8% on the previous year. These figures are a clear indication of the continued effects of market reform in China.
The major industries in Hunan are; agriculture, high-tech, construction, transportation, retail and tourism. All of which have experienced steady increases in output and value. In 2005 Hunanâ€™s total grain output was 28,565 million tonnes, an increase of 1.7% on the previous year. The high-tech industry experienced growth of 21.8% on 2004 with the added value of high-tech industries in Hunan valued at 47,293 billion RMB. Construction was up 6.0% valued at 40,466 billion RMB, turnover from retail increased 14.4% to a value of 245,912 billion RMB and revenue from tourism increased by 21.1% to the value of 45,357 billion RMB.
Partly as a result of improving infrastructure the transportation industry in Hunan saw significant increases in the amount of passengers and freight carried between 2004 and 2005. The amount of freight carried was up 7.3% to 165,710 billion tonne-kilometres and passenger numbers were up 5.3% to 102,345 billion person-kilometres.
Increasing employment and poverty relief has also played a major role in the development of Hunan province. In 2005 a special relief fund of 770 million RMB was established that lifted approximately 200,000 people out of poverty. Included in this relief fund were 1,069 drinking water related projects that provided a population of approximately 121,000 access to clean drinking water. Also, about 1.75 million primary and middle school students from poor families were exempt from tuition fees. At the end of 2005 the employed population of Hunan stood at 38,018 million people, this was an increase of 575,600 people on the previous year. Also, a total of 342,200 laid off workers gained new employment in that year.
Recommend this article