Hangzhou High-tech Industry Development Zone (Hangzhou HTDZ)
Facts & Figures (2007)
Rating
Year of Establishment
1991
Land Area
12.12 km2
Location
Binjiang District, Hangzhou, Zhejiang Province
GDP
RMB 14.6 billion (value-added industrial output)
FDI
US$628 million
Utilized FDI
US$361 million
Major Investors
Nokia, Alcatel, BOS, Panasonic, Mitsubishi, Daewoo, TCS, CA, INTECH, Alibaba, SISTEMA, ZTE, IBM, NTT, Microsoft, AISIN, UTStarcom
Major Industries Encouraged
Electronics & information, biochemicals, pharmaceutics, opticals, mechanical and electronic integration
Source: Hangzhou Hi-tech Industry Development Zone
Introduction
Hangzhou Hi-tech Industry Development Zone (Hangzhou HTDZ) won the State Council's approval to become a state-level development zone in 1991. It covers an area of 12.12 km2 and is located in Binjiang District in Hangzhou, approximately 180 km from two of China's busiest ports – Ningbo-Zhoushan Port and Shanghai Port.
The Shanghai-Hangzhou, Zhejiang-Jiangxi, Xuanzhou-Hangzhou and Hangzhou-Ningbo railways intersect in Hangzhou, and the Shanghai-Hang-Ningbo and Hangzhou-Jinhua-Quzhou expressways also cut across the city. The zone is located only 15 km from Hangzhou Xiaoshan International Airport, which offers 181 airlines to major domestic and offshore cities per week.
The zone is an educational base in Hangzhou, with over thirty universities (such as Zhejiang University and China Academy of Art), nineteen research institutions and nine state-level key labs. Hangzhou's local government has also built two educational bases in Binjiang District and Xiasha District, where the zone is located.
Investment Climate
Hangzhou HTDZ consists of 3 areas, of which Xiasha Sci-tech Industrial Park (located close to the state-level Hangzhou Economic and Technological Development Zone) and Zhijiang Sci-tech Industrial Park are the two most important. Hangzhou HTDZ mainly encourages investments in electronics & information, biochemicals, pharmaceutics, opticals, and mechanical and electronic integration.
After years of development, Hangzhou HTDZ has become one of China's eleven national industry bases for software, IC design, BPO and animation. It is the home to over 1,100 software developers and BPO enterprises. Nokia, Motorola and Siemens have established research centers in this zone. In 2007, the export value of software rose 21.1% year-on-year to US$316 million, accounting for 16.8% of China's total. Around 8% of China's IC design firms are located in the zone. In addition, its animation base has produced 10% of China's total animated TV series. Hangzhou HTDZ has become renowned as the “Paradise Silicon Valley” of China.
Over 70% of high-tech companies in Hangzhou have congregated in the zone. At the end of 2007, there were over 5,000 hi-tech firms in the zone, which generated an industrial output value of RMB 101.6 billion, accounting for more than one eighth of Hangzhou's total industrial output.
In 2007, Hangzhou HTDZ attracted US$628 million worth of FDI, accounting for 11.2% of the city's total, while the utilized FDI hit US$361 million. Big foreign enterprises such as Nokia, Panasonic, Mitsubishi, IBM, NTT, Microsoft and AISIN have invested there. It is also home to Alibaba.com, the world's largest online B2B portal.
Alibaba, founded in 1999, is an online marketplace for over 32 million registered traders throughout the world. Currently, Alibaba.com is operating 5 online portals, including Alibaba.com, Alipay, Taobao, Alisoft and Alibaba. In 2007, it was listed on the Hong Kong Stock Exchange, becoming the largest Chinese website in terms of market value.
Investment Costs
Land Costs
Area
Purchasing Price (RMB/m2)
Level 1 Zhonghe Road; South: Hefang Street, Border of West Lake Reserve; West: Tiyuchang Road, West Section of City Ring, Miduqiao Road, Great Canal, Overhead Viaduct
1,530
Level 2 East: Dongxi Road, East Section of City Ring, Railway, Jiangcheng Road; South: Wansongling Road, Border of West Lake Reserve; West: Shuguang Road, Border of West Lake Reserve, Yugu Road, Tianmushan Road, Jiaogong Road; North: Wenshan Road, Wenhui Road, Shangtang Road, Chaohui Road
1,220
Level 3 East: Shaoxing Road, Wenhui Road, Airport Road, West of Genshan Road, North of Qiutao Road, Qingchun Road; South: Qiangtang River, Lower part of Zhonghe Road, Border of West Lake Reserve; West: Yugu Road, Yuxi Road, Guicui Road; North: Wenyi Road, Desheng Road
970
Level 4 Northern Part: East:: Great Canal; South: Qiantang River; West: Yuxi Road, Zijinhua Road; North: Yutang River, Great Canal, Huzhou Road, Shaoxing Road, Xiangjishi Road, Dongxin Road, Desheng Road, the intersection of Caowang Road and Shiqiao Road Southern Part: East: Fuxi Bridge; South: Qiantang River; North & West: Border of West Lake Reserve
750
Level 5 Northern Part:: East: to the railway; South: Qiantang River; West Xixi Road, Border of Xixi Reserve, Zijingang School of Zhejiang University; North: Guihua Road, North Railway Station, Xitang River, Guihua Dinghai Road, Great Canal, Shixiang Road, Dongxin Road, Zhonggong Road, to the railway Southern Shore of Qiantang River, Xiaoshan District
390
Level 6 Northern Part (excluding Level 5), Southern Shore of Qiantang River (excluding Level 5), Zhijiang National Holiday Reserve
300
Source: Department of Land & Resources of Hangzhou Municipality, 2004
Utility Costs
Purpose of Usage
Water (RMB/m3)
Waste Water Treatment Fees (RMB/m3)
Gas (RMB/m3)
Residential
1.55
0.50
2.4
Government
1.75
1.50
3.0
Commercial
2.05
1.50
3.0
Industrial
1.75
1.80
3.0
Others
2.05
1.50
3.0
Source: Administrative Commission of Hangzhou Hi-tech Industry Development Zone (all the figures are in 2004), China Water,
Logistic Costs
Railway Freight Costs (RMB/TEU)
Beijing
Shenyang
Shanghai
Nanjing
Guangzhou
Hangzhou
3,370
4326
1,274
1,667
3,392
Source: Administrative Committee of Hangzhou Hi-tech Industry Development Zone
Air Freight Costs (RMB/Kg) (0-45 Kg)
Tokoyo
Seoul
Taipei
Hong Kong
Hangzhou
21
18
15
8
Source: Administrative Committee of Hangzhou Hi-tech Industry Development Zone
Labor Costs
Reference Salary at Labor Market
Average Wage (RMB/year)
Junior
7,993-24,823
Technicians
12,071-66,520
Engineers
8,519-32,984
Managers
11,239-74,735
Senior Managerial Staff
16,972-106,813
Source: Administrative Committee of Hangzhou Hi-tech Industry Development Zone
Winning Edge
Strength in high-tech industries, especially in telecommunications equipment manufacturing, IC design, software, BPO and animation industries
Advantageous geographic location
High government efficiency, as local commission provides "one-stop" services
Large talent pool with strong R&D capability
Limitations
High labor and land costs
Threats from Ningbo, where the economy is highly boosted by its world-class port.
Weak manufacturing industry
The Administration Committee
Address: Administration Center, Binjiang District, Hangzhou 310051
