Why invest in Kunming

·         Significant natural resource, Kunming is rich in mineral and agricultural resources and a strong tourism industry has been important to the city’s economy.

·         A big local consumer market

·         Mild climate

·         Authorities pay attention to tertiary sector, strengthening transportation, logistics, trade services, and tourism.

·         Favorable geographic location as a bridge linking China to other countries.

·         Kunming is also the intersection of the ASEAN “10+1” Free Trade Area, the Greater Mekong Subregion Economic Cooperation Zone.

·         Kunming can access to South China Sea (access to Bangkok), Adman Sea (access to Kyaut Phyu) and Strait of Malacca (access to Singapore) with a number of railways, highways and an air transport network reaching other parts of China and neighboring countries

Investing in Kunming

In 2010, Kunming’s total foreign trade reached US$ 10.1 billion, increase 79.4% if compared with the previous year. The city’s main export goods include non-ferrous metals, inorganic chemicals, chemical fertilizer, tobacco and related products, fruit and vegetables. Among these, the key important goods are metal ore, plastics, minerals and natural fertilizers, also industrial equipment. The city’s important export destinations are Chile, Vietnam, Myanmar and Laos.

Kunming is also considered as attractive city to invest in some fields such as infrastructure, development of agricultural and biological products, development of mineral resources, high technology and environmental production.

Investment Projects

Source: http://www.chinakunming.travel/list.aspx?cid=42

Tobacco

Yunnan tobacco quite popular among the cigarette smokers, more than 45% of the Yunnan provincial government’s tax receipts come from tobacco. For years, tobacco industry has played an important role in local economy and national tobacco industry. Tobacco has been exported and applied as raw materials in many factories inside and outside of China. National production of cigarette brands in Yunnan province has reached 800 million boxes. Commercial profits and taxes achieved RMB 71.7 billion, while Yunnan’s total revenue is RMB 136 billion in fiscal year.

Source: Thoughts on developing modern logistics in Yunnan tobacco industry, 2009

Flowers

Yunnan province accounts for more than 50% of the nation’s total cut flower production. The plating area for flowers in Yunnan amounts to 42,000 hectares by the end of 2010. In 2010, the exported amount of flowers was more than USD 150 billion.

Kunming is the main flower growing centers or also known as a city of eternal spring with beautiful flowers everywhere throughout the year due to the moderate climate of mild winter and moderate summer. The city has recognized more than 70 specialized planting areas such as roses, carnations and daisies. More than 90% of the fresh cut flowers grown in the Kunming area are sold to other regions or exported to Hong Kong, Taiwan and international markets including Japan, Korea, Singapore, Hong Kong, Vietnam and Thailand.

There are two main marketing channels for Yunnan flowers. The first option is for middle traders to purchase at Dounan wholesale flower market and Kunming International Flora Auction Trading Co., Ltd (KIFA), and then transfer to the commissioned agents, wholesale market or retailers. The second option is for enterprises to sell their products directly to the client.

Source: Flower industry in Yunnan, 2011

Puer Tea      

Puer tea is very famous and being known as Tibetan tea as it is linked to the southern tea and Silk Road running through Tibet, India and Nepal. The tea is mostly consumed by Tibetan people and supplied by Kunming. The tea is widely used and stored for many years for fermentation where it is considered to have high nutrition and health benefits. The tea can also be used for weight control purposes.

Jade

Jade trading can be considered as highlighted industry through mining in Myanmar and process in Kunming before export or tourism sales. Green, white, yellow, red and purple jade is used as a tradition for Kunming people to wear as a charm for health purposes. The quality is based on the genuine grade ‘A’ jade with no processing, unlike grade B which involves some chemically processed methods and grade ‘C’is the lowest one with chemical and filling qualities.

Source: Kunming cultural exchange, 2012

Pharmaceutical

Kunming will put greater emphasis on the development of its pharmaceutical industry. In 2006, revenue of Kunming’s pharmaceutical industry accounts for RMB 493 million (70% of the total pharmaceutical industry output in Yunnan Province).

Leading pharmaceutical companies in Kunming:

·         Kunming Traditional Chinese Medicine Factory Co. Ltd.,

·         Yunnan Phyto-pharmaceutical Co. Ltd.,

·         Yunnan Baiyao Tianzihong Pharmaceutical Co. Ltd.,

·         Kunming Longjin Pharmaceutical Co. Ltd.

·         Kunming Yunjian Pharmaceutical Co. Ltd.

Fixed Assets

Total investments in fixed asset in Kunming has surged from RMB 26 billion in 2001 to RMB 228 billion in 2011. This trend is also predicted to continue growing as there are a great number of upcoming projects that provide opportunities for growth such as the Kunming Airport Economic Zone, South Asian Gate, Dianchi Lake Water Treatment, etc. With a target to become an international ecological city, Kunming is expected to have more investment in fixed assets.

Total investment in fixed assets (in millions)

Source: http://www.starmass.com/china-review/city-overview/kunming.htm

Tourism

Kunming is third-tier cities in terms of concentration of foreign retailers. Kunming has high future investment destination, particularly for the hotel, hospitality and tourism industries. Below are figure of year 2006 tourism sector:

Kunming international tourism has obtained the fast development in recent years. Tourism industry in Kunming has made considerable progress, and has become one of the pillar industries. The number of arrivals has been increased steadily every year. In 2001, Kunming received a total of 8.19 million foreign tourists; among these international tourists were more than 1 million passengers as an increment of 16.7% if compare with the previous year. In first quarter of 2012, there were 10.5 million arrivals to Kunming, of which 12.5% is oversea passengers.

International tourism foreign exchange earnings increase gradually over the years. It was USD 137 million in 2000, and then increased to USD 298 million in 2011. From 2000 to 2011, the total amount of international tourism revenue USD 2,253 million.

Source: http://www.itcea.org/main/201106280909001/Page/20120807140852999/NewsDetail.asp?NewsId=20120911111508734

Tourism Opportunities in Kunming

Tourist destination

Kunming is known as the “Spring City” for its equitable climate, is one of China’s most enjoyable place for tourism. Kunming enjoys a protected location with mountains to the north, east and west. It has a mild climate with an average temperature of 18 degree Celsius, which makes it spring all year round. In addition, the beauty natural scenery, historical relics and gorgeous ethnic minorities has made Kunming become one of the most favorable destinations in China with over 2,000,000 tourists per year, also another 800,000 overseas tourists visiting annually. Kunming has recently laid profound foundations on the tourism exchanges with Singapore. The tourism promotion trip aims to seek more cooperation opportunities and send tourism information to Singapore to attract more Singaporeans to visit Kunming.

Source: http://en.kunming.cn/index/content/2011-12/19/content_2783124.htm

As the steady development of tourism in Kunming, there are 104 tourism hotels in the city, of which 7 five stars hotel. Kunming’s hotels are of very high standard and most represent very good value for money. The star ratings are local classifications and are good for comparative purposes within China. A five star hotel is of top international standard, a three star hotel is also very comfortable.

Luxury Hotels in Kunming

1.     Kai Wah Plaza Hotel

2.     Green Lake Hotel

3.     Bank Hotel

4.     Horizon Hotel

5.     Green Land Hotel

6.     Grand Park Hotel

7.     Golden Eagle Summit Hotel

Investment projects for tourism

Source: http://www.chinakunming.travel/list.aspx?cid=42

Kunming Macro Economic Indicators

Kunming is the province’s largest economy. In 2011, the city’s GDP reached RMB 251 billion, increase 18% if compared with previous year. It accounted for approximately 34% of the province’s total. The city’s GDP per capita is RMB 39,200 in the same year.

GDP growth rate over the year (in millions)

Source: http://www.starmass.com/china-review/city-overview/kunming.htm

GDP Composition

Source: HKTDC Research, 2011

Kunming’s 5 pillar industries include tobacco, metallurgy, mechanical and electronic integration, pharmaceuticals, and tourism. Among these, tourism is considered as the most important pillar business. In 2010, Kunming attracted 34.71 million domestic tourists with revenue of RMB 28,48 billion, increase 25.8% year on year.

Source: HKTDC Research, 2011

Foreign Trade Overview (2006)

Source: http://old.echinacities.com/kunming/business-guide/economic-overview/kunming-business-guide-economic-overview.html

Major Economic Indicators (2010)

Source: HKTDC Research, 2011

Kunming Infrastructure

In Kunming, a network of transportation, electricity, water supply and pipe gas has been actualized, beautified and matched with the national standards. A group of fully equipped star level hotels with excellent service has come up for tourism industry.

Kunming has a convenient transportation railways, highways and air routes system which radiates in all direction. The highways of over 5,000km lead to every corner of the province and extend to other provinces of China.

Kunming airport is one of the biggest in China with an annual handling capacity of 2.4 million passengers, operation 6 international routes and 35 domestic routes.

Source: http://www.usachina.org/english/chinesecity/kunming.htm

Transportation

By Air

At the end of 2011, major infrastructure upgrades were already underway that promise to make Kunming to be air and land logistic hub in western China. Changshui Airport is the fourth largest airport in China after Beijing, Guangzhou and Shanghai with ability to handle annual traffic of 38 million passengers and cargo capacity of 950,000 tons by 2020.

By Road

The Kunming-Bangkok Expressway is the first expressway from China to Bangkok via Laos. China National Highways 108, 213 and 320 intersect in Kunming, and Kunming is linked to Thailand, Vietnam and Laos via a well-functioning highway system that provides Yunnan province access to seaports of Southeast Asia

By Rail

Kunming is the main rail hub of Yunnan province. The construction of several high-speed railways is also on the way. It is planned that these will be connecting Kunming to Shanghai, Nanning, Vietnam, and even Delhi and Singapore.

Source: http://old.echinacities.com/kunming/business-guide/business-environment/municipal-infrastructure-transportation.html

Research and Development

Source: http://www.walvax.com/wosen/31.aspx

Kunming Demographic Profile

Kunming has the population of more than 6.4 million (2011), with the urban population density of 1,537/square kilometer. Kunming’s population covers a total area of 21,500 square kilometers and its urban area covers 6,200 square kilometers. Kunming has a more balanced male to female ratio of 1.05 to 1 if compared with other cities of China.

Source: Kunming emerging city market report, 2012

There are 26 Chinese minority ethnic groups which account for 6% of city total population. Of which the Yi people are the most prominent minority in the city, with more than 400,000 residents. The least represented one in Kunming is Dulong people with 75 residents.

Ethnic minorities in Kunming

Source: http://en.wikipedia.org/wiki/Kunming#Natural_resources

Kunming population over the year 

Source: http://www.starmass.com/china-review/city-overview/kunming.htm

Kunming Natural Resources

Major mineral products are phosphorus, salt, iron, titanium, bauxite, silica, of which phosphorus, salt and titanium have the largest production. The storage of phosphorus in Kunming ranks the first in China. The total reserve of salt here is more than 10 billion tons. In addition, titanium and bauxite are both have high reserves here.

Source: http://www.chinaculture.org/gb/en_travel/2003-09/24/content_33764.htm

Kunming is very rich in agricultural resources. The city is one of China’s largest producers of agricultural products which are rice, maize, tobacco, oil-bearing crops, vegetables, fruits, flowers and plants. Kunming serves as the base and a major production area for Yunnan’s flower trade which accounts for more than 70% of the total cut flower production in China; also it is the home to one of the largest wholesale flower markets in Asia.

In addition, Kunming is famous with its tourism resource, of which the Stone Forest renowned as “Natural Wonder under the heaven” and the diversified culture of local minorities. For these reasons, Kunming is now a favorite destination for both local and international tourists.

Source: http://www.usachina.org/english/chinesecity/kunming.htm

Copper, lead, zinc, and iron ore are mined nearby Kunming, and many of its products dominate important positions in China’s markets. One of the largest company in Kunming is Yunnan Copper Company, a state company and the largest mining enterprise in Yunnan.

Source: http://www.sicas.cn/Students/Info/Content_110625120950635.shtml

Kunming Economic Zones

Source: HKTDC Research, 2011

Kunming Financial Services

Insurance Services in Kunming

Source: http://old.echinacities.com/kunming/business-guide/business-environment/business-environment.html

Logistic Providers in Kunming

Source: http://www.cargoyellowpages.com/en/china/kunming/