Mengla & Mohan

Why invest in Mengla & Mohan

Based on the construction of current 6 pillar industries, such as the development of the industries of forestry, tourism and culture, electric power, animal husbandry and organic food processing, industrial hemp, traditional Dai medicine and South China medicinal plants, Jinghong has been considered by Yunnan Government as the central city of the GMS international cooperation economic zone.

1)     Geographic advantages

Mengla administrates grade-1 national border port Mohan land port and Guanlei wharf, and two important land passageway namely Mengman and Manzhuang. There are 3 asphalt roads linking to three capital cities of three Northern provinces of Lao PDR. Mohan port is located at the most south of Yunnan province, borders Boten of Laos. It is only and most convenient national grade land port connected China to Southeast and South Asia countries, and one of the main channels for Langcang-Mekong GMS economic cooperation, the best joint part for establishing China-ASEAN free trade zone. It is easily reach to LMTCV, the other 5 GMS countries by taking boat from Guanlei Wharf along Mekong River.

2)     Natural resource

Mengla is definitely worthy for its fame as the Kingdom of Plants. In Mengla, there are over 4000 species of plants, of which over 1000 species can be used directly, over 433 species were in the key protection species list. There is 330,666.7 ha virgin forest, of which 113,333 ha is national natural protection area. The Xishuangbanna Xishuangbanna Tropical Botanical Garden (XTBG) of Chinese Academy of Sciences (CAS) was also located in Menglun town covering an area of 1,100 ha.

Investing in Mengla & Mohan

Menlga’s pillar industries include rubber, tea, mining, sugar manufactory and tourism, of which rubber industry is the key industry for national economy of Mengla.

I. Catalogue of Priority Industries for Foreign Investment in Mengla (2011)

1)     Infrastructure construction: road, water and electricity, harbor, wharf, ports, public and municipal areas.

2)     Agriculture and animal husbandry: biotechnology, biological resources industry development, comprehensive utilization of agricultural resources, good pedigree livestock breeding, aquatic products breeding.

3)     Tourism: scenic region or spots, tourist products processing and manufacturing, hotel management and services, construction of assorted tourist culture facilities.

4)     Environmental conservation and river pollution treatment.

5)     Industries of technology, education, culture, health and care, and sports

6)     Services industries: science and technology information consultation, business and foreign trade.

II. Allowed foreign investment forms

1)     Sino-Foreign equity Joint Ventures, co-operative Joint Ventures and Wholly- Owned Foreign Enterprises

2)     Chinese Holding Companies, Foreign investment joint stock company, joint operation, mergers and acquisitions, lease, trusteeship, contract

3)     BOT, management right transformation, charging right.

4)     Project financing

5)     Other international investment forms

Source: http://www.zgsxzs.com/plus/view.php?aid=33412

(Source: 1) General approval and registration procedures chart, Establishing a Foreign Invested Enterprise in China, by A Norton Rose Group Guide, Norton Rose LLP 2010 Edition No. NR8079; and 2) Application Procedure for Establishing a Foreign Invested Enterprise, Official website of Jinghong Investment Promotion Office, http://www.jhszs.cn/fwzxshow.aspx?showid=87)

Tourism Opportunities in Mengla & Mohan

With the “crossing border tourism” development strategy, Mengla had received 7.870 million tourists with a total income of RMB 4.051 billion during 2006-2010, 7.42 times than the previous 5 year (2001-2005). The total number of tourists in 2012 reached to 2.639 million with the total income of RMB 1.967 billion.

Mengla Tourism Profile, 2006- 2010

Mengla & Mohan Macro Economic Indicators

Main macroeconomic indicators of Mengla, 2012

Source: Mengla Statistic Bureau Official website, 2012 http://xxgk.yn.gov.cn/canton_model12/newsview.aspx?id=2165225

1. Gross Domestic Product (GDP)

Gross Domestic Product (GDP) and Growth Rate of Mengla (2009-2012)

Source: Mengla Government Work Report 2011, http://www.sssta.net/detailed_gh.asp?id=32012&sid=1577

Note:

Primary Industry:           Farming, Forestry, Animal Husbandry and Fishery

Secondary Industry:      Mining and Quarrying, Manufacturing, Production and Supply of Electricity, Water, Fuel Gas and Construction.

Tertiary Industry:            Other economic activities not included in primary or secondary industry, such as services of farming, forestry, animal husbandry and fishery, communications and transportation, storage and postal serves, information transmission, computer software services, wholesale and retail trade, hotel and food services, banking, real estate lease and commercial services, scientific research and technical service, geological prospecting, health care, social security and welfare, culture, sports and entertainment, public management and social organization.  (Refer to the Yunnan Statistical Year Book 2012)

Sugarcane, grain crops, rubber and tea are the leading industries of primary industry, sugar processing and mining for secondary industry and tourism for tertiary industry. The tourist in Mengla is increasing year by year. Since the visa services implemented, more and more tourists from UK, USA, France, Germany, Japan, Australia, Singapore, Thailand, Malaysia are visiting Mengla. Mohan port became the busiest port for the third countries tourist.

2. International Trade and Economic Cooperation

The main international economic cooperation project of Mengla is the opium substitution project. The project started from the contract with Luang Namtha Province of Laos to plant rubber instead of opium in 1997, gradually extended to construction contract, found factory, mineral development, agricultural and commercial crops development and cooperation, agri-products processing and construction of comprehensive business market etc. cooperation fields.

From January to August of 2011, 14 enterprises were involved in the “opium substitution project”, 49950.8 ha opium planting area has been replaced by other commercial crops, of which 41,228.8 ha for rubber, 5,418 ha for sugarcane, 53.3 ha for tea, 1970.7 ha for walnut, 738.7 for maize, 541.3 ha for rice paddy.

Mengla government has come out some favourable condition to encourage qualified enterprises engaged in foreign trade to go abroad to contract with Laos and other countries. There are 2 factories in Laos with the total investment as of USD 1.6 million.

Source: 1）Good Practices and Outcomes of Open-door and international cooperation of Mengla, Bureau of Commerce and the Bureau of Overseas Chinese Affairs and Foreign Affairs

2) http://news.uplook.cn/news/jrnews/224276.html

There are five on-going economic cooperation projects between Xishuangbanna – Laos and Xishuangbanna – Myanmar.

(Source: 12^th Five-Year Plan (2011-2015) for International Economic Development of Xishaungbanna)   

3. Agriculture sector

The total value of agricultural outputs reach to RMB 3.91 billion in 2012 with 7.3% increased than the year earlier. At the end of 2010, there are 9 pillar industries in Agriculture sectors such as grain, rubber, tea, tropical fruits, South Chinese Medicine, Sugarcane, vegetables, animal husbandry and fishery.

In the 2011-2015 agriculture development plan, Mengla plans to develop the 9 pillar industries while enhance new industries development such as Red konjac and Dendrobium.  Mengla pay more efforts on agri-products processing by implementing:

1)     7 agriculture infrastructure construction projects in rural area

2)     14 projects for agri-production base construction

3)     8 projects for agricultural science and technology extension

4)     2 projects for fine breed cultivation

5)     4 projects for animal and plants protection

6)     1 project for agri-products’ quality and safety control system

7)     2 projects for agricultural marketing information system

8)     1 agri-resources and ecoological conservation

9)     8 projects on Agricultural industrialization promotion

10)  5 projects for capacity building on agricultural public services and administration

Source: DRAFT 12^th Five-Year Plan for Agriculture Development of Mengla (2011-2015)

Volume and increase rate of the main agricultural products, Mengla, 2011

Source: 1) Mengla Bureau of Commerce: Mengla Government Work Report 2012;

2) Yunnan Statistics Year Book 2011.

Volume of Dry Rubber output of Xishuangbanna, 2012

4. Industry outputs

The total value of industrial output of Mengla in 2012 is RMB 0.844 billion with 7.4% increase with added value of RMB 0.44 billion at an increased rate of 8.1%.

Output and Increase Rate of Major Industrial Products of Mengla, 2012

5. Transportation

G8511 Kunming–Mohan Expressway

The Kunming–Mohan Expressway, commonly referred to as the Kunmo Expressway, is an expressway that connects Kunming, Yunnan, China, and Mohan, a town on the border with Laos, in Xishuangbanna Dai Autonomous Prefecture, Yunnan. The expressway is a spur of G85 Chongqing–Kunming Expressway and is entirely in Yunnan Province.

The Kunming–Mohan Expressway forms the Chinese portion of the Kunming–Bangkok Expressway, to Bangkok, Thailand. Mohan, the southern terminus, is on the China–Laos border and there is a border checkpoint which connects to Route 13 in Laos.

The expressway is not fully complete in some sections. Currently, China National Highway 213 parallels much of this route but is not an expressway.

Border Port and Passageway in Mengla County 

Souce: Mengla Bureau of Commerce, June 30, 2009

Research and Development in Mengla & Mohan

Academy and Institution:

Xishuangbanna Tropical Botanic Garden, Chinese Academy of Science

Address: Menglun town, Mengla county, Xishuangbanna 666303, Yunnan, China

Tel: +86 (0) 691-8715071

Fax: +86 (0) 691-8715070

Website: http://english.xtbg.cas.cn/

Mengla & Mohan Economic Zones

1.     Mohan-Boten Cross Border Economic Cooperation Zone

Based on the Yunnan Xishuangbanna Boten Economic Development Zone (since 2001), Yunnan Province has proposed to Laos’ Luang Namtha Province to set up a Mohan-Boten cross-border economic cooperation zone based on the “two countries, one zone; separate administrations, joint planning” model in 2012. According to the proposal, this would require an agreement between the two national governments to jointly boost this border area’s development and service China-ASEAN free trade zone development. Mohan – Boten cross-border economic cooperation zones was considered as a breakthrough to deepen economic and trade ties with neighboring countries, grasp of foreign roads and the upcoming start of the Trans-Asian Railway line construction work, based on resources and focus on developing Dai medicine, tea, eco-food industry, construction, export-oriented industrial base, boost economic development and Xishuangbanna ‘border trade circle’ construction.

According to the public draft plan, the cooperation zone includes two areas and 12 clusters as below.

Draft Planning for Mohan-Boten Cross Border Economic Cooperation Zone

Source:

1)     http://mqvu.wordpress.com/tag/laos/

2)     http://www.mltravel.gov.cn/newshow.aspx?id=134

3)     http://www.best-news.us/news-5030426-Xishuangbanna-Yunnan-and-Laos-Myanmar-and-Thailand-to-promote-the-border-trade-circle-construction.html, July 30, 2013

4)     http://www.zgmh.net/Article_show.aspx?id=62, 2012.

The total volume of foreign trade goods of Mohan increased from 328 thousand tons in 2008 to 1.2744 million tons in 2012 with the average annual growth rate of 32 % in the 5 years. Meanwhile, the total foreign trade volume rose from 18.3 thousand tons to 117 thousand tons with an average annual increase rate of 45 %.

1.     Mengman Industrial Zone 

Mengman Industrial Zone is planned as the part of Mohan Import and Export Process Zone, a planned 4.76 square kilometers. It is located at the 50 km far from Mohan Import and Export Processing Zone and 53 km from Mengla County. The zone will include 5 clusters namely life services clusters, storage and logistics clusters, Grade-I industrial clusters, Grade-III industrial clusters and Long-term development clusters.

2.  Guanlei Border Trade Zone 

Guanlei Border Trade Zone was established in 1993 with planned 205 ha area. The current total capital for development has been reached to RMB 0.31 billion contributed by central government, local government and investment.

Statistics of Guanlei Border Trade Zone (2008)

· Investment Promotion Projects in 2013

o    Guanlei Eoonomic Zone Import and Export Products Processing Zone

o    Guanlei Storage and Logistics Services Center

Contacts: Hu Zhili

Tel: +86 135 7815 5898

Fax: +86 (0) 691 8786 022

Email: [email protected]

Mengla & Mohan Business Associations