JAKARTA-YANTAI(SHANDONG)
JAKARTA-YANTAI(SHANDONG)
TRADE&INVESTMENT FORUM NEWSLETTER


Yantai of Shandong Province will hold the JAKARTA—YANTAI(SHANDONG) TRADE&INVESTMENT FORUM at the BALLROOM of MULIA SENAYAN Hotel at 3 p.m. on June 2nd. The FORUM was co-organized by Yantai Municipal Government and Jakarta Chamber of Commerce and Industry. It aims to provide investment and trade information and offer boundless business opportunities. You are warm welcome to be present at the FORUM. For more information, please call Trinita Media at 021-31908317.

Charming Yantai with Boundless Business Opportunities
By Li Shuqin, Vice Mayor of Yantai

Yantai is located in the east of Shandong Peninsula, facing the Yellow Sea and Bohai Bay. It is one of the important cities in the economic circle around Bohai Bay and one of the first 14 cities of China opening to the outside world in 1984. Yantai is also one of the center cities and an important part of Shandong Peninsula manufacturing base.

In a survey conducted by Japan External Trade Organization (JETRO) among the 1330 Japanese invested companies in China, Yantai ranks No. 1 among the 67 cities and development zones in terms of business climate. In 2004,Yantai was No. 1 among the 14 coastal cities open to the outside world in terms of economic development speed. And in a poll of “the top ten most charming Chinese cities” conducted by China Central Television, Yantai was put on the list. Yantai was also awarded as one of the three model cities for living environment in the same year. In a survey conducted by China Academy of Social Science among 600 cities, Yantai ranks No. 7 in terms of social order and is considered one of the safest cities in China. In addition, Yantai was awarded as one of the “Top 50 Cities in terms of Comprehensive Strength”, of the “Top 40 Cities for the Best Business Environment”, etc. Yantai also is a famous International Vine and Wine City, which is the only one in Asia.

Yantai has a total area of 13700 square kilometers, with a total population of 6.5 million, consisting of 12 county-level administrative regions. It is the third economically powerful city in Shandong Province. There are three state-level special parks approved by the central government, which are Yantai Economic Development Area (YEDA), Yantai Export Processing Zone and APEC Industrial Park. Yantai also has 9 provincial level development zones and one North Coastal Economic Belt, all of which have provided broad space for overseas investors.

The sound investment environment has attracted more and more overseas investors to set up their businesses in Yantai. By the end of 2004, Yantai had attracted 20 billion USD of foreign investment from 70 different countries and regions. More than 40 “Fortune top 500” companies or multi-national companies have set up operations and expanded their businesses in Yantai, such as GM, Timken of USA, Henkel and SAF of Germany, Continent Cement of the Philippines, Djajanti Group of Indonesia, Sembawang and Fook Huat Tong Kee of Singapore, Foxconn of Taiwan, LG, HYUNDAI, SK, DAEWOO of South Korea and Mitsubishi, ITOUCHU, TOYOTA, DENSO of Japan. The Charoen Pokphand Group from Thailand has decided to invest in Yantai. The fish-farming project is going on smoothly. And Lotus Supermarket, which is a section of Charoen Pokphand Group, is going to open very soon in Yantai. Besides, the power project with an investment of 300 million USD is also going on very well.

After opening to the outside world, Yantai foreign economy and trade companies have signed 1600 contracts in terms of contracted projects and labor services with an accumulative contract volume of 104 million USD and a turnover of 750 million USD. So far, Yantai has accomplished 42000 person-times of foreign labor services and 46 million USD of overseas investment. At present the export commodities in Yantai cover 20 categories including 2000 different products, exporting to 180 countries and regions. Yantai now has 2500 foreign trade companies. In 2004, the total import and export volume hit nearly 8 billion USD, increased by 36% over the previous year, of which the export volume was 4.5 billion USD, increased by 35% over 2003.Among the export commodities, raw products took up 30% and finished industrial products took up 70%.

Yantai has always had a good cooperation relationship with ASEAN and the economic and trade exchange enjoys a long history. The exported commodities to Indonesia mainly include garlic, fruit, vermicelli, flour, steel pipes and kinescopes etc. The imported commodities from Indonesia to Yantai mainly include palm stearin and oil, brass wires, dry cassava, rubber and wood pulp etc.

Based on the complementary industries of both countries, the initiation of the free trade zone between China and ASEAN has further enhanced the possibility of cooperation and provided unprecedented opportunities for the economy and trade development of both countries. In 2004, the import volume from ASEAN was 133 million USD, increased by 57% over 2003. And the import volume from Indonesia was 24 million USD, increased by 27%. This time we have selected some projects suitable for bilateral investment and prepared a commodity brochure containing more than 2000 commodities for your perusal.

Indonesia is a country rich in natural resources with broad market prospects and Yantai is a charming and buoyant city. I firmly believe that based on the complementary industries of both countries and good platform of economic and trade cooperation; we can further expand our bilateral investment and import and export trade businesses. Let’s join hands and grasp the opportunity to create a bright future.