Investment in Shanxi
Key Facts:
Area: 156,000 square km
Population: 31.09 million
Capital City: Taiyuan
Major Cities: Datong, Linfen, Yangquan
GDP: 412.12 billion RMB
GDP per capita: 12,320 RMB
Investing in Shanxi Province
In monetary terms the total Foreign Direct Investment (FDI) in Shanxi Province in 2005 was approximately US$ 280 million, a significant increase on the previous year. Project and labour contracts from overseas signed in Shanxi Province in 2005 had an estimated value of US$ 220 million; however, business turnover for the year totalled only US$ 200 million, a decrease of 33.3% on the 2004 figure.
While most of the major industries in Shanxi Province developed and grew in 2005 not all did so. The agricultural industry suffered in 2005, with total grain output at 9.78 billion kg, this was a decrease of 33.3% on output in 2004. Many of the other major industry sectors faired much better in 2005. The tourism industry saw dramatically increased revenues from both domestic and foreign tourists. It is estimated that revenues from foreign tourists reached US$ 116 million in 2005, an increase of 43.1% on revenues received in 2004. Revenues from domestic tourism also increased dramatically by 41.1% between 2004 and 2005 with total revenue at the end of 2005 standing at 28.19 billion RMB. In 2005 the annual turnover of retail sales in Shanxi Province reached 140.12 billion RMB by the end of 2005, this was an increase of 14.9% on the figure for the previous year. Annual revenue for postal operations also increase during 2005, by the end of the year total revenue stood at 1.77 billion RMB an increase of 24.6% on the previous year. The heavy industry sector also made significant gains during 2005, by the end of the year the sectors total added value was 207.3 billion RMB, an increase of 16.9% on the figure for 2004.
At the end of 2005 the employed population of Shanxi Province stood at 14.751 million people. During the year 407,000 new jobs were created and 161,000 previously laid off workers were able to find new employment. Also, some success was had in increasing welfare and aid provisions to some of the poorest people in Shanxi Province during 2005. The public welfare funds raised during the year totalled 293.79 million RMB and roughly 849,000 urban residents received a basic living allowance from the government with an estimated value of 690.69 million RMB.
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