A promotional meeting, aimed at spurring growth of the local service industry, will take place this afternoon (Oct. 16) in Bao'an District of Shenzhen in South China's Guangdong Province.

Organized by the district government, the meeting will introduce favourable investment policies, seeking to attract capital to service industry facilities, Wang Lixin, deputy head of the district government, told a press conference this Monday.

A total of 113 projects worth US$1.7 billion will be offered at the meeting, covering logistics, trade and commerce, tourism, culture, communication, education and technology.

These projects will provide vast business opportunities to investors from home and abroad and, meanwhile, are expected to lift the service industry of Bao'an, Wang said.

In this sense, the promotional meeting is expected to help achieve win-win results, as the meeting's theme indicates, he said.

Local authorities have made it a high priority to strengthen the service sector as one of the focuses of the district's development strategy, Wang noted.

"The development of a modern service industry is of great significance in optimizing the industrial structure, lifting comprehensive competitiveness and building a harmonious society," he said.

Advantages

With a land area of 733 square kilometres and a population of more than 5 million, the coastal district is situated in the Guangzhou-Shenzhen-Hong Kong economic belt and thus enjoys distinct advantages in building a strong service sector.

Bao'an has a widespread and comprehensive transportation network, covering rail, air, sea and highways.

Bao'an International Airport with a high throughput of passengers, goods and mail was listed as a global top 100 hub in passenger transport and a global top 50 hub in terms of freight transport, according to Wang.

And the throughput of international express mail via the airport accounted for one fourth of the country's total.

The strategic location and convenient transportation facilitates the flow of human resources, logistics, funds and information, and thus creates an ideal environment for service industry development, Wang said.

Meanwhile, flourishing industrial operations in the district offer huge business opportunities for service providers, he added.

Gross domestic product (GDP) of Bao'an exceeded 100 billion yuan (US$12.5 billion) in 2005. The total size and output value of the district's technology information industry is at the forefront of the country.

As one of the leading export-oriented economies in China, export trade volume of the district was US$42.9 billion in 2005, accounting for 5.63 per cent of the country's total, next to Shanghai and Suzhou.

The export powerhouse has attracted an influx of overseas capital. Foreign investors have so far established nearly 8,000 facilities in the district, Of them, 69 are invested by Global Top 500 companies, Wang said.

Driven by the strongly performing industrial sector, the district's service industry has made substantial progress in recent years.

Statistics show that incremental output value of the service industry reached 44.75 billion yuan (US$5.6 billion), increasing 14.3 per cent year-on-year and accounting for 38.5 per cent of the district's GDP.

At present, a number of leading retail brands from home and abroad, such as Wal-Mart, Carrefour and Gome, have set up their chain stores in the district.

A new central business zone is also under construction. At the same time, the cultural industry, real estate, tourism, finance, the information sector and intermediary services are beginning to flourish in the district.

Strategy

The Shenzhen municipal government has set a goal to build the city into an international and modern metropolis by 2009. To this end, four pillar industries of the city, including high technology, logistics, finance and culture, will receive strong support.

Accordingly, Bao'an district government has mapped out a development strategy and plans to build four bases and five pillar industries in the next five years, Wang said.

The bases involve high-tech and manufacturing industries, production-oriented services, foreign-oriented economy, and eco-tourism; the pillar industries include technology information, new machinery manufacturing, modern logistics, recycling economy and culture.

Wang stressed Bao'an District will capitalize on its transportation facilities, especially sea and air ports, exploring a new city development model.

Revolving around Bao'an International Airport, authorities will intensify efforts to develop the conference and exhibition, trade and commerce, technology research and development, hotel and real estate and aviation training and tourism industries, he said.

Additionally, authorities will also advance construction of five key logistics parks, six major scenic sports areas and seven major cultural projects, seeking to bolster the local modern service industry, he added.

The incremental output value of the service sector is projected to reach an annual growth of 18 per cent in the 11th Five-Year Plan period (2006-10), according to an official document released this July.

Moves

To bolster the service industry, the district government has released a series of preferential policies this year to encourage healthy growth of the sector, Wang said.

He said that the service sector could also benefit from the renovation of old industrial parks.

The authorities plan to extend financial support to construction of infrastructure facilities, rebuilding and repairing public service facilities and rental homes in the old industrial parks.

Wang said the district and municipal governments plan to invest at least 100 billion yuan (US$12.5 billion) in more than 300 infrastructure facilities and public service facilities during the 11th Five-Year Plan period.

Government-sponsored development funds, which used to focus on the industrial sector, are being used for modern service industries, Wang said.

The government has drawn up a growth scheme for private-invested small and medium-sized enterprises.

In the scheme, the listed companies will receive governmental financial aid, and firms involved in the service industry will account for at least 40 per cent of the total.

In addition, authorities are attaching importance to attracting and training industrial human resources. They provide various financial support, low-rent apartments, and simplified household registration procedures for specialists from other regions.

Editor: Yan