Journal of Geographical Sciences ›› 2018, Vol. 28 ›› Issue (9): 1288-1306.doi: 10.1007/s11442-018-1526-5
• Orginal Article • Previous Articles Next Articles
Tao SONG1,2(), Weidong LIU1,3, Zhigao LIU1,3, Yeerken WUZHATI1(
)
Received:
2018-01-05
Accepted:
2018-03-20
Online:
2018-09-25
Published:
2018-09-25
About author:
Author: Song Tao (1983-), PhD, specialized in regional sustainable development and globalization. E-mail:
Supported by:
Tao SONG, Weidong LIU, Zhigao LIU, Yeerken WUZHATI. Chinese overseas industrial parks in Southeast Asia: An examination of policy mobility from the perspective of embeddedness[J].Journal of Geographical Sciences, 2018, 28(9): 1288-1306.
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Table 1
The profiles of seven Chinese overseas economic and trade cooperation zones in Southeast Asia approved by the Chinese Ministry of Commerce"
Cooperation zone | Year of establishment | Country | Chinese enterprises | Location |
---|---|---|---|---|
Thai-China Industrial Park in Rayong | 2005 | Thailand | Huali Industrial Group | Located near the No. 331 High-speed Railway, Rayong Province, 27 km from Laem Chabang, the largest deep water port in Thailand |
Sihanoukville Special Economic Zone | 2006 | Cambodia | Jiangsu Taihu Cambodia International Economic Cooperation Zone Investment Co. LTD | Located in Sihanoukville, the only international port city in Cambodia, 3 km from Sihanoukville International Airport and 12 km from the port |
Long Giang Industrial Park | 2007 | Vietnam | Tien Giang Investment Management Co. LTD | Located in the Jiulongjiang Plain, southern Vietnam. About 50 km from downtown Ho Chi Minh City, the international airport, and Saigon Port. The park is near an inland river and the cargo can be transported directly to the international port. |
China-Indonesia Economic and Trade Cooperation Zone | 2007 | Indonesia | Guangxi State Farms Group LTD | Located in the Greenland International Industry Center, Bekasi County, east of Jakarta, the capital of Indonesia |
Integrated development zone of Saiseta, Vientiane | 2010 | Laos | Yunnan Provincial Overseas Investment Co., Ltd | Located in Saiseta and Saitani counties, in the northeastern part of Vientiane, the capital of Laos, with an area of 10 km2 |
Indonesia Morowali Industrial Park | 2013 | Indonesia | Shanghai Decent Investment Group | Located in Morowali County, Central Sulawesi, Indonesia, with an area of >2,000 ha. It is located next to the provincial highway, about 60 km from the center of Morowali County |
China-Indonesia Julong Agricultural Industry Cooperation Zone | 2011 | Indonesia | Tianjin Julong Group | Many parks in the same area, including Central Kalimantan Park, Southern Kalimantan Park, Western Kalimantan Park, and Northern Kalimantan Park in Kalimantan Island as well as Lampung Port Park, Lampung Province in Sumatra |
Table 2
Leading industries and enterprises in China-Southeast Asia economic and trade cooperation zones"
Cooperation zone | Area (km2) | Description | Leading industry | Investment/ income | Main enterprises | |
---|---|---|---|---|---|---|
Thai-China Industrial Park in Rayong | 12 1st installment: 1.5; 2nd installment: 2.5; 3rd installment: 8 | Industrial areas, bonded areas, convention and exhibition center, logistics bases and commercial and residential support facilities | Automobile fittings, machinery and home appliances | 1 billion US dollars (2016) | 80 enterprises | |
Sihanoukville Special Economic Zone | 11.13 1st installment: 5.68 | Textile and apparel, hardware tools, and light industrial appliances in export processing, commercial and trade, and residential zones | Textile and apparel, hardware tools, light industrial appliances | Investment value of 0.31 billion US dollars | 100 enterprises, including Jinchenyuan Textile Co. LTD, Enterex International Limited (automobile fittings), and Canadia Bank | |
Cooperation zone | Area (km2) | Description | Leading industry | Investment/ income | Main enterprises | |
Long Giang Industrial Park | 6 industrial district: 5.4; residence area: 0.6 | Industrial district; residence area | Textile and light industry, machinery and electronics, and chemical construction materials | With the income of 0.4 billion US dollars (2014) | 17 established and under construction enterprises in 2015; 13 enterprises came into service in the same year | |
China- Indonesia Economic and Trade Cooperation Zone | 5 1st installment: 2.05 | 3 industries in a group, including household appliances, machinery manufacturing, and agricultural processing | Automobile assembly, machinery, home appliances, fine chemicals, and new materials | Investment value of 0.65 billion US dollars | In 2015, 25 enterprises and 12 under construction | |
Integrated development zone of Saiseta, Vientiane | 10 | Agricultural products export and processing, light industrial products export and processing, services and logistics, bonded area, business district and residence, and tourist area | Energy and chemical industry, agricultural and animal products, electric products industry, cigarettes and tobacco, construction materials, and logistics and storage | Investment value of 0.3 billion US dollars | 13 enterprises | |
Indonesia Morowali Industrial Park | 20 (plan) | 4 electronic generators, base station, satellite television system, 300,000 tons port berth and more than 70 residences | Ferronickel, stainless steel | Total investment value of 4 billion US dollars | 6 enterprises, including PT Sulawesi Mining Investment and Indonesia Guangqing Ferronickel Industry Co. LTD | |
China- Indonesia Julong Agricultural Industry Cooperation Zone | 4.21 | 5 parks including Central Kalimantan Park, Southern Kalimantan Park, Western Kalimantan Park, and Northern Kalimantan Park in the Kalimantan Island and the Lampung Port Park, Lampung Province in Sumatra | Oil palm planting and development, intensive processing, acquisition, storage and logistics | A total investment of 1.245 billion US dollars | 12 upstream and downstream enterprises for palm oil |
Table 3
General policies for the China-Southeast Asia economic and trade cooperation zones"
Countries in Southeast Asia | Cooperation zone | Policy |
---|---|---|
Thailand | Thai-China Industrial Park in Rayong | Enterprises with Chinese interest need not pay corporate income tax for a maximum of 8 years (different preferences are based on industry; knowledge-based and high-technology industries may secure the maximum tax free period), imported machinery is tax free for 8 years; imported materials used for export can be tax exempt for 5 years; foreign skilled workers, experts, and their spouses can work; foreign workers can be granted land ownership. |
Cambodia | Sihanoukville Special Economic Zone | The Investment Law for the Kingdom of Cambodia stipulates that: in addition to the stipulation on land ownership mentioned in the constitution law of the Kingdom of Cambodia, all the investors, regardless of nationality and race, are equal before the law; nationalization policies that damage the interests of investors shall not be adopted by the government; in terms of authorized programs, the government shall not control the product and service prices; the government shall not carry out foreign exchange control policies but allow free in-and-out movements of foreign exchange. |
Countries in Southeast Asia | Cooperation zone | Policy |
Cambodia | Sihanoukville Special Economic Zone | According to the regulations outlined in the Investment Law for the Kingdom of Cambodia and the management laws for the special districts, all enterprises in Sihanoukville Special Economic Zone enjoy a series of preferential tax policies: tax for imported equipment and construction materials that are used to invest and establish a plant can be 100% exempt from import tariffs; according to the types of products, enterprises in the park can have 6-9 years of generous tax holidays from the business profit tax; enterprises do not need to pay export tax for exported products; and equipment and construction materials are free from added-value tax. |
Vietnam | Long Giang Industrial Park | The government of Vietnam has already adopted the most preferential tax policies to attract enterprise investment. Enterprises in the park have a 15-year tax reduction period once they have operational revenue, with a discount of 10% (currently, the corporate income tax in Vietnam is 25%); before they start to earn money, they also have a 4-year tax free period with a subsequent 9-year half-tax period. This is the most preferential set of tax policies in Vietnam. Enterprises do not need to pay import and export taxes for equipment listed in the fixed assets. Once the operation starts, raw materials, goods, materials, and imported accessories are subject to a 5-year import tax free period. Enterprises in the park can make a decision on the classification of their enterprise (general enterprise or export processing enterprise) depending on their own situation. Export processing enterprises are free of import and export taxes and added-value tax for raw materials. |
Indonesia | China-Indonesia Economic and Trade Cooperation Zone | Enterprises with Chinese interest can enjoy a corporate income tax and imported machinery tariff free period of up to a maximum of 8 years. Enterprises do not need to pay tax for imported raw materials for selling purposes in the initial 5 years. Foreign skilled workers, experts, and their spouses can be brought into the park. Foreign workers can purchase land. China and Indonesia have signed the Investment Protection Agreement, Maritime Agreement, Agreement on the Avoidance of Double Taxation and Memorandum of Understanding for subjects such as agricultural and mining, which provide guarantees for Chinese enterprise investments in Indonesia. |
Indonesia Morowali Industrial Park | ||
China-Indone-sia Julong Agricultural Industry Cooperation Zone | ||
Laos | Integrated development zone of Saiseta, Vientiane | The development zone complies with the legal procedures formulated by the governments of Laos and China. Land use rights can be transferred or rented to others with a tenure of 70 years, but can be extended to 99 years after expiration with the authorization of the Laos government. Production enterprises can earn tax free profits for 6-10 years. Once the period expires, the enterprises pay 5% tax; commerce and trade enterprises have a 2-5 year profit tax free period, with a subsequent tax rate of 5%; service enterprises have a tax free profit period of 2-10 years, with a subsequent tax rate of 5%. |
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