China-Thailand (Chongzuo) Industrial Park: A Bilateral Cooperation Project Centered on Sugar

Written by Li Min / Translated by Lv Youping, Ji Minyu

China-Thailand (Chongzuo) Industrial Park: A Bilateral Cooperation Project Centered on Sugar

Written by Li Min / Translated by Lv Youping, Ji Minyu

Initial cooperation project based on sugar Chongzuo, praised as the most convenient landbased access to ASEAN, “Sugar City”, “Manganese City” and “Border Trade City”, was established 13 years ago, when its urban industrial park emerged at the historic moment, thus marching into an era of industrial development. During that period, Guangxi (Nanning) East Asia Sugar Industry Co., Ltd., subordinated to Thailand’s Mitr Phol Sugar Group, is one of the foreign-funded enterprises that were initially stationed in Chongzuo City. Currently, this company, on the basis of the abundant cane-sugar resource, has developed into one of the largest sugar enterprise groups in China over the years, with a total of 10 branches such as sugar refi nery, biomass power plant and paper pulp factory, which has not only increased its development scale and influence, but also has laid a solid foundation for in-depth bilateral cooperation. In addition, Chongzuo has occupied a more significant position in the economic and trade cooperation between ASEAN and China; in particular, Thailand-China cooperation will be further promoted due to Chongzuo’s exceptional location as an international access, preferential policies and ample resources.

It is worth noting that sugar continues to be regarded as one of the top priorities when strengthening cooperation between Thailand and China: in 2012, China-Thailand (Chongzuo) Industrial Park (hereinafter referred to as CTCIP) was collectively initiated by Chongzuo Municipal Government and Mitr Phol Sugar Group, with a foucs on setting a good example for Thailand-China cooperation in terms of industrial parks; and in September 2015, the Framework Agreement on the Cooperation and Construction of China-Thailand (Chongzuo) Industrial Park was offi cially signed during the 12th China-ASEAN Expo, providing a new guarantee mechanism for the construction of CTCIP.

Bilateral cooperation far more than sugar

Liu Youming, Secretary of Municipal Party Committee of Chongzuo, indicated that, according to the development planning of CTCIP, priorities are given to the leading industries including circulating sugar industry and food processing, home furnishing and light textile, materials and electronics, international trade logistics, as well as cross-border E-commerce. Besides, when cooperating with Mitr Phol Sugar Group, work is being done to hold discussions with Aluminum Corporation of China Limited on the down-streaming processing of rare earth, and negotiate with COFCO on the development of sugar circular economy. In the future, focus will be given to the planning and construction of food processing industrial park, high-tech industrial park, etc.

Throughout three years, marked achievements have been scored in the construction of CTCIP: a broad avenue, 22 kilometers long, has been completed and opened to traffi c; infrastructure pertaining to water, electricity, road, gas supply and sewage disposal continues to improve; and the construction of Laituan Operating Area located in Chongzuo Port is being progressively advanced. “If completed, transportation costs would be reduced, products transported to more areas, raw materials supply increased, and economic cooperation between CTCIP and Guangdong, Hong Kong and Macao, and even Vietnam enhanced,” said the project director.

He Shaowei, Director of Chongzuo Urban Industry Management Committee, said that a host of wellknown enterprises at home and abroad have been stationed in CTCIP. For example, it is revealed thatAngel Yeast (Chongzuo) Co., Ltd., the largest yeast manufacturing base in China, has invested up to over 1 billion yuan, the products of which have been sold to more than 80 countries and regions.

A host of well-known enterprises at home and abroad have been stationed in CTCIP. This is the Angel Yeast manufacturing base.

“Two Countries, Twin Parks”: A favorable cooperation model for investment

The Chinese government has introduced a series of preferential policies serving the development of China’s western areas, the opening and development of Guangxi Beibu Gulf Economic Zone, border trade, and old revolutionary base areas, which not only offers a favorable platform to Thai enterprises to invest in China but also a convenient distribution center for Thai products to be sold to China.

In terms of the construction of CTCIP, it is of vital significance to the mutual benefits and winwin results between Thailand and China. As initial success has been achieved in the bilateral cooperation, the development of CTCIP has been positively supported by all sectors of Thailand and China as well. In April 2015, when meeting with Thai Prime Minister Prayuth Chan-ocha, Secretary of Guangxi Zhuang Autonomous Region Peng Qinghua hoped that the construction of CTCIP could be vigorously supported by him, reaching a consensus on this advice.

Deputy Mayor of Chongzuo City Wu Aihong said that efforts are expected to create Thailand-China “Two Countries, Twin Parks”, and the construction and development of CTCIP could be further forged ahead at the national level through referring to the cooperation model created by China-Malaysia Qinzhou Industrial Park and Malaysia-China Kuantan Industrial Park.

On April 23-30, 2016, an investigation group led by Deputy Mayor of Chongzuo City Lao Ningjun was sent to Lao PDR and Thailand, during which pragmatic cooperation was promoted in terms of the cooperation on CTCIP: the cooperation agreement on “Twin Parks” was signed by CTCIP and Mukdahan Special Economic Zone, accelerating the development of Thailand-China “Two Countries, Twin Parks”; in the meantime, a number of Thailand’s large enterprises and fi nancial institutions also showed their great interests in having access to Chongzuo and exploring Chinese market. In addition, representatives from ASEAN Potash Mining Co., Ltd., KASIKORNBANK, Rayong Industrial Park and so on will send the delegations of their own to Chongzuo for an on-the-spot investigation in the near future.