The Suzhou Industrial Park (SIP), located in east China's Jiangsu Province and set up with joint investment from both China and Singapore, has become a cluster of multinational corporations and serves as a springboard for the development of Suzhou's economy with its strong competitive edge and spirit.
In the first quarter of this year, the park received total contracted foreign investment of US$315 million, and has actually used US$152 million of it -- 57 percent and 26 percent increases, respectively, over the same period of last year. The SIP has become one of China's fastest-growing and most prosperous industrial zones, fulfilling the goal envisioned when China and Singapore signed the agreement for the project.
The SIP, the largest Sino-Singapore cooperation project so far, has made impressive progress since its establishment six years ago. It has attracted US$7 billion of contractual foreign investment, with an actual utilization total of US$3.5 billion. The park has also attracted 186 foreign-funded enterprises, 36 of which are among the Fortune top 500 companies.
The park leads the country in the investment of each single project, which involves more than US$30 million. High-tech industrial ventures here are mainly devoted to precision machinery, bio-pharmaceuticals, new materials, and name-brand light industrial goods. These encouraging results can be attributed to the excellent investment environment of the park, according to Suzhou Mayor Chen Deming.
The park has the same status as the five special economic zones and Shanghai's Pudong New Area. Investors in the park enjoy special investment terms such as a corporate tax rate of 15 percent instead of the national average of 33 percent. Especially enterprises with an operation period of over 10 years and exporting enterprises with annual export value exceeding 70 percent, and technology enterprises are eligible for more favorable policies, including special tax reductions.
The park adopts Singapore's experiences in modern management. It features up-to-date infrastructure, residential neighborhoods and service facilities. Altogether, 7 billion yuan has been poured into infrastructure construction. In addition, international schools have been set up in the park for the children of foreign staff, and hospitals, banks, hotels, shops, and other service facilities have been built, following the model of Singapore's Garden City. To accelerate imports and exports, the park has its own customs office. Furthermore, a one-stop service is offered featuring efficient procedures for application and approval to help enterprises get established as soon as possible.
The investment growth and the efforts of both the Chinese and Singapore sides present a promising blueprint for the park. In early July of 1999, the two partners reached a Memorandum of Understanding (MoU) on the development of the park, removing almost al the problems which had arisen between the two sides during the cooperation period. The two sides are stepping up their endeavors to create a first-class park for investors, in line with international standards.
According to the MoU, the Chinese part take over the major management responsibilities in the China-Singapore Suzhou Industrial Park Development Co., and the Singapore has vowed to continue its unswerving support for the park.
The park has attracted investors from nearly every part of the world, including those from the USA and Europe. To improve the park's management, 20 senior personnel were sent to Singapore for professional training, and another 53 were trained there in promotion and property management.
While perfecting its first phase of development, the park is expanding its industrial scope to commerce, tourism and housing, and making efforts to diversify its business structure. It plans to set up an international hi-tech zone specializing in software development by introducing high technology, biochemical projects and information technology.
To help the park get listed on the stock market, the municipal government of Suzhou has established the Network Science and Technology Shareholding Co. to engage in the value-added network business. Suzhou also encourages hi-tech enterprises to move into the park.
The SIP was recently named one of the Top 10 Industrial Parks in Asia by the British magazine Corporate Location. The magazine pointed out that the SIP's prime location and long-term strategy have made it a hot investment spot.
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