Su-Tong Science and Technology Park, Nantong City
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The Su-Tong Science and Technology Park Investment Environment Evaluation Report (2012) Preface The authorities from Suzhou and Nantong signed an agreement Using personal interviews, questionnaire-based surveys and in November 2008 (during the second session of the Singapore- comparative studies conducted with organizations already Jiangsu Cooperative Council Conference) to jointly develop the invested in Nantong and the NSIP, Deloitte has examined Su-Tong Science and Technology Park (NSIP). Situated on the the Park in respect of location, economic development and northern side of the Su-Tong Yangtze River Highway Brige, the industry. Using a qualitative and quantitative analysis of the data project draws on the success of the China-Singapore Suzhou collected, we have examined the decisive criteria for investment Industrial Park (SIP). Using advanced planning techniques and site selection and the characteristics of the NSIP’s investment development concepts, in combination with superior interna- climate. tional management practices, the NSIP has been established to The data and analysis depict the NSIP as an emerging industrial become a high-tech, internationalized, eco-friendly and compre- park in the rapidly developing Yangtze River Delta region, which hensive business and technology zone. distinguishes itself in the following ways: The year 2011 marked the beginning of the Chinese govern- • Innovative government policy and people-oriented ment’s 12th Five-Year Plan, as well as the infrastructure comple- government services tion of 9.5 km² of land development for Phase I of the NSIP. It was at this juncture that Deloitte Touche Tohmatsu CPA Ltd. • Sophisticated park planning (Deloitte) was asked by the NSIP to research and evaluate the • Unique geographic advantage overall investment climate environment of the NSIP. • Self-contained infrastructure This research was conducted, from a site selection perspective, by utilizing qualitative and quantitative analysis, extensive field • Abundant human resource reserves studies, data collection and interviews with major enterprises. • Superior living environment The report relies on several factors for measuring the investment The development and construction of the NSIP draws from the climate of a city and refers to the study report, “Competence experience of industrial park development during the 30-year of 120 Chinese Cities in 2006,” published by the World Bank period since since China initiated its reforms and the opening and the “Blue Paper of City Competitiveness in China for 2010,” up of the economy. The NSIP will also benefit from world-class published by the Social Science Academic Press (China), as planning and development concepts that will accentuate the well as several indicators used by the Ministry of Commerce natural characteristics of the location and help to realize the full and various local departments for investment environment potential of the Park. With its innate and acquired advantages, reports. The analysis of the investment environment of the NSIP the NSIP is well-positioned to exceed its conventional coun- has been systematically analyzed from the following perspec- terparts in the Yangtze Delta region and become the preferred tives, each comprising indicators based on the NSIP's specific investment destination for enterprises in the advanced manu- macroeconomic and micro business environment factors for facturing and modern service sectors. The NSIP is also set to enterprises: play a pivotal role in the formation of the Shanghai-Nantong • Government services and policies economic pipeline and become a critical engine to drive the economic boom in China’s Yangtze Delta. • Environment for business cooperation • Infrastructure • Human resources • Living environment Table of Contents 1. Nantong Overview 3 2. NSIP Investment Environment 9 3. Government Services and Policies 17 4. Environment for Business Cooperation 25 5. Planning and Infrastructure 31 6. Human Resources 45 7. Living Environment 49 The Su-Tong Science and Technology Park Investment Environment Evaluation Report 1 Key Factors for Future Success of NSIP Leverage the Yangtze Delta: Unique regional advantages and mature industrial base High potential new park: Cutting edge planning techniques, with abundant land resources Well-positioned satellite city: Concentration of high-end industries and a pool of high-caliber talent Modern: A glorious past, a promising future World-class development and management teams: A comprehensive industrial development and management model and a service team with international values and services 2 1. Nantong Overview • Located in Shanghai’s “one-hour economic zone” • Ranked 4th in Jiangsu Province by total GDP The Su-Tong Science and Technology Park Investment Environment Evaluation Report 3 1.1 Description A glance at a map of China will show Nantong ideally situated at the junction between the coastal economic belt and the Yangtze Delta economic zone. Nantong is also strategically located in the area shared by two national strategies: the Jiangsu Coastal Area Development Program and the Yangtze River Delta Regional Plan. During the government’s 12th Five-Year Plan, Nantong will strive to become the economic hub on the northern side of the Yangtze Delta. Prime location within the northern stretch of the Geological composition Yangtze Delta Nantong’s landscape consists of the Yangtze River Delta plain Nantong sits in the southeastern part of Jiangsu Province, on with thick and complex sedimentary deposits. Its lithology the northern stretch and near the mouth of the Yangtze River. features a mixture of sandy loam, mild clay, silted clay and silt. Facing the river to the south and the Yellow Sea to the east, The land area continues to expand and extend out towards the Nantong has a longer coastline than any other city in Jiangsu East China Sea.② Province, stretching 210 km, while also extending 226 km along ① the Yangtze River. Pleasant climate—Four distinctive seasons Overlooking Shanghai and Suzhou across the Yangtze River, Located within the northern subtropical monsoon climate zone, Nantong is a 123 km drive from Shanghai and a 107 km drive Nantong has temperate maritime climate with a high level of from Suzhou. rainfall and four distinctive seasons. The mean annual tempera- ture is 15.9°C, and average annual daylight measures approxi- mately 2,000-2,200 hours, with a mean annual precipitation of Within Shanghai’s One-Hour Economic Zone 1,000-2,000mm.③ Nantong’s five major channels across the Yangtze River include the recently constructed Suzhou-Nantong Yangtze River In 2011, Nantong registered 110 days and 226 days of ‘good’ Highway Bridge (Su-Tong Bridge) and Chongming-Qidong and ‘fair’ urban air quality, respectively, accounting for 92% of Bridge, and other three bridges currently under construction, the annual total.④ which are the Wuxi-Nantong Bridge, the Chongming-Haimen Bridge and the Shanghai-Nantong Railroad Bridge. Situated within Shanghai’s one-hour economic zone, Nantong is only an hour’s drive from Shanghai and also offers easy access to other major cities in the Yangtze Delta. Source: ①Nantong governm ent official website ②Provided by NSIP ③Nantong 2010 Statistical Year Book ④2010 Report on the State of the Nantong Environment 4 1.2 Macro Economy GDP growth leading the Yangtze Delta 2007-2011 Nantong’s total GDP In 2011, Nantong posted a total GDP of CNY 408 billion and ranked fourth in Jiangsu by volume.① Unit(s): CNY 100 million Its GDP grew 19.4% from the previous year, well 5,000 beyond the 11.1% average growth rate of all 16 4,080 4,000 cities②in the Yangtze Delta. 3,418 2,873 3,000 2,510 Improving industrial structure, strengthening 2,112 ④ the economy 2,000 In recent years, Nantong has actively forged ahead with industrial restructuring. While the secondary 1,000 industry maintains steady growth, the tertiary industry has gained momentum. 0 2007 2008 2009 2010 2011 At the end of 2011, the secondary sector Source: Statistical Information of Nantong represented 54.5% of Nantong’s GDP and added a value of CNY 222.1 billion in 2011, up 16.4% from 2009. 2009-2011 Nantong Industrial Structure The tertiary sector represented 38.5% of Unit(s): Percentage Nantong’s GDP and added a value of CNY 157.2 100% billion in 2011, up 26.02% from 2010.① 80% 35.8% 36.5% 38.5% 60% 40% 56.0% 55.8% 54.5% 20% 8.2% 7.7% 7% 0% 2009 2010 2011 Primary industry Secondary industry Tertiary industry Source: Nantong Statistical Bulletin 2009-2011 Source: ①Statistical Information of Nantong ②The 16 cities in the Yangtze Delta are: Changzhou, Hangzhou, Huzhou, Jiaxing, Nanjing, Nantong, Ningbo, Shanghai, Shaoxing, Suzhou, Taizhou (in Jiangsu), Wuxi, Yangzhou, Zhenjiang, Zhoushan and Taizhou (in Zhejiang) The Su-Tong Science and Technology Park Investment Environment Evaluation Report 5 Total retail sales of consumer goods top CNY 2009–2011 Nantong total retail sales of consumer goods 100 billion In 2011, Nantong’s total retail sales of consumer Unit(s): CNY 100 million 1,480 goods stood at CNY 148 billion, up 16.7% from 1,500 2010. 1,400 1,300 Nantong also registered a double-digit increase in 1,268 living expenses for the fourth consecutive year, which 1,200 1,100 was CNY 16,666 per capita, a 15% increase or CNY 1,086 2,174 more than that of the previous year. 1,000 900 With a business environment that is continuously 2009 2010 2011 improving, Nantong’s commercial development and Source: Statistical Information of Nantong consumer market have been booming in recent years. 2009–2011 Nantong disposable income per urban household Highly potential consumer market In 2011, Disposable income per urban household in Unit: CNY Nantong totaled CNY 25,094, indicating a 6.6% or 27,000 25,094 CNY 1,553 increase from 2010. 25,000 23,541 Steadily rising disposable income shows promise for a 23,000 21,001 vibrant and high-potential consumer market. 21,000 19,000 Growing and broadening foreign trade② 17,000 In 2011, Nantong registered a total import-export 2009 2010 2011 volume of USD 25.8 billion, a 22.5% increase from Source: Statistical Information of Nantong the previous year.