Comprehensive Exhibition Center Project for Parallel-import Vehicles in Honghe Area of China (Yunnan) Pilot Free Trade Zone

Name

中国（云南）自由贸易试验区红河片区平行进口汽车综合展销中心项目

Comprehensive Exhibition Center Project for Parallel-import Vehicles in Honghe Area of China (Yunnan) Pilot Free Trade Zone

Industry Involved

Processing and trade industry

Site

Honghe Area, Pilot Free Trade Zone

Project Description

In 2019, the Overall Plan for China (Yunnan) Pilot Free Trade Zone was printed and distributed in the Notice of the State Council on Printing and Distributing the Overall Plan for Six New Free Trade Zones. On August 30, 2019, Honghe Area of China (Yunnan) Pilot Free Trade Zone was formally put into operation. Honghe Area, located in the Hekou County, Honghe Prefecture, with a total land area of 14.12 km2, implements interactive development with Honghe Comprehensive Bonded Zone and Mengzi Economic & Technological Development Zone, and prioritizes the development of processing and trade, great health services, cross-border tourism, cross-border e-commerce and other industries to spare no effort to build an ASEAN-oriented processing and manufacturing base, a business logistics center and an innovative and cooperative demonstration zone in the China-Vietnam Economic Corridor.

Relying on Hekou County's import and export superior resources, the project will construct a comprehensive exhibition center for parallel-import vehicles, to build it into an exhibition and trading center for parallel-import vehicles integrating automobile resource integration, import, exhibition, sales, brand promotion, automobile decoration and after-sales service, and provide convenient import automobile trade services for Honghe Prefecture and its surrounding prefectures and cities, Yunnan Province and surrounding provinces and cities.

Content

Construction content: The project is planned to construct a comprehensive service center, an import automobile exhibition area, an automobile test drive area, an automobile decoration service center, an after-sales service center and related supporting facilities, mainly including comprehensive office building, storage warehouse, automobile exhibition hall and accessories exhibition area.

Land area: The land area is about 130mu, and the floor area is 80,000m².

Supporting Conditions

Hekou County, located at the southernmost point of Southwest China and southeast of Yunnan Province, is a national Class I open port. "Centennial commercial port and open Hekou" has the following characteristics:

Two rivers and one port: Hekou, named for its location at the intersection of the Red River and the Nanxi River, is a border city with tropical and subtropical scenery by virtue of its unique geographic location. It enjoys high temperature and humidity, rich mineral resources and biological resources, and the forest coverage of 47.3%. It is called "small animal kingdom" and "small plant kingdom".

Two countries and one city: Hekou County faces Lao Cai (Vietnam) across the Red River and the Nanxi River, with a total length of the border line of 193 km (including 73 km of river boundary and 120 km of land boundary). The Yunnan-Vietnam Railway Bridge, the Nanxihe Highway Bridge, the Honghe Highway Bridge, the Guliu Highway Bridge and the Xinpo Bridge in Vietnam are integrated, and the bridges are busy, connecting the port cities of the two countries. The special "geography" and "relationship" make the two cities on the China-Vietnam border form the unique port landscape of "city is port, port is city" and "two countries and one city".

Two ports and one zone: At present, Hekou has 2 national Class I ports, namely, railway port and highway port. Meanwhile, to further expand opening-up, since 2005, Hekou has boldly explored, actively practiced, and declared to build the China (Hekou) - Vietnam (Lao Cai) Cross-border Economic Cooperation Zone, striving to move towards a new frontier of opening-up.

Two cities and one belt: Hekou has been the second passage of the "Southern Silk Road" since ancient times. It is located at the "throat" of the Kunming-Hanoi-Haiphong Economic Corridor, 406 km north of Kunming City, the provincial capital, 260 km south of Hanoi, the capital of Vietnam, and 360 km north of Haiphong, the largest seaport in Vietnam. The "Centennial Yunnan-Vietnam Railway" and "centennial port opening to trade" make the merchants here gather, compete and prosper. The Mengzi-Hekou Railway (east line of the Trans-Asian Railway), the Kunming-Hekou Expressway and the Honghe Waterway pass through here to interconnect with Vietnam. Hekou has become a central hub for the international exchange of commodities, personnel, vehicles, capital and information in the Kunming-Hanoi-Haiphong Economic Corridor, and an important gateway for economic and cultural exchanges between China and Vietnam and Southeast Asian countries.

Integration of two cultures: The national port makes the local national culture and foreign culture meet, intersect and be compatible with the traditional Chinese culture here. Hekou is the sole Yao Autonomous County in Yunnan Province, inhabited by 24 ethnic minorities including Yao, Miao, Zhuang, Dai, Yi and Buyi. The Yao people's massive folk customs such as the "Panwang Festival" are full of charm. The ancient French architecture, Cantonese architecture, ancient fort and educated youth of agricultural reclamation tell the vicissitudes of the past. The beautiful costumes of all ethnic groups, tourists from all over the world, and a variety of exotic goods show their unique local customs, forming a unique border culture with colorful and harmonious Hekou.

Investment Estimate and Fund Raising

Planned investment of the project: CNY 560 million;

Fund raising: all investment invitation and self-raising by enterprise.

Preferential Policies Applicable

Preferential policies in the province, prefecture and Honghe Area of Pilot Free Trade Zone are available for the project. Foreign workers can be recruited.

Market Prediction (Analysis)

Parallel-import vehicles refer to the vehicles purchased directly from overseas markets through professional channels and introduced into the Chinese market for sale. Due to the different import places, they can be divided into "American standard vehicles" and "Middle East vehicles", to be different from the "Chinese standard vehicles" sold through traditional channels. The price of parallel-import vehicles is 15% or above lower than that of imported vehicles. The project has a promising market, and the development is worth expecting.

Profit Model and Preliminary Benefit Analysis

Upon completion, the revenue will be mainly obtained from parallel automobile exhibition sales, automobile accessories sales, after-sales service and other related services. It is estimated that the annual main business income is about CNY 2 billion.

Risk Analysis

The project risk mainly comes from the limitation of automobile types caused by environmental protection.

Cooperation Pattern

Sole proprietorship and joint venture

Contact Information

Contact Unit: Management Committee of Honghe Area of China (Yunnan) Pilot Free Trade Zone

Contact Person: Tao Yingxian

Tel.: 13769309507

Fax: 0873-3069166

E-mail: 499692326@qq.com