Shanghai Daily News

Nanhui is reporting that the district's foreign investment hit US$606.9 million in the first half of this year, a 45 percent increase over the same period a year previously.

The district government said recently that it was forging ahead with efforts to attract foreign investment through stronger infrastructure and preferential policies.

In the 1990s, foreign investors were merely testing the waters of the southeast district's business environment. At the time, the suburban area was considered purely as farmland with a potential consumer market.

The 688-square-kilometer area, currently consisting mostly of farmland, will be transformed into a sophisticated economy with the most advanced transport systems, industrial infrastructure, vocational resorts and amusement facilities within the next few years.

With the growing purchasing power of Shanghai consumers and the liberalization of sectors open for foreign investment, the establishment of Yangshan Deep-Water Port and Pudong International Airport, has introduced a wave of wholly foreign-owned enterprises to the district.

By fully utilizing the presence of the Pudong International Airport, Nanhui's prime location has not only boosted its logistical industry, but has also gradually attracted many foreign investors to this transport hub.

Wang Jun, a Nanhui Economic Committee official, said the district may become the main area of Shanghai's next round of economic development, supported by Pudong International Airport and Yangshan Deep-Water Port.

"With the lure of low cost land, cheap labor and great potential, many foreign organizations have set up their operations and factories in the district," he said.

"Some Forbes 500 companies in Pudong New Area are now thinking of establishing another base in our district, given the fact that we can provide preferential policies and sufficient land."

Government figures show that the foreign investment accounted for 33 percent of the district's economy.

Modern equipment manufacturing, electronic information and modern logistics are the three main industrial sectors in Nanhui.

Companies such as the marine arm of Rolls-Royce, telecom giant Siemens, ASE Group, Cheng Loong Corporation, Henkel, Bluescope Steel and Schneider Electric have set up bases here.

District officials also said that the first research and development organization and investment company will be established later this year.

Related infrastructure to fulfill the lack of quality office buildings in the district is also now underway. Several office buildings are now under construction in Kangqiao, covering an area of 133.3 hectares.

Nanhui Industrial Park is also planning to build a commercial center this year.