Knowing All about Hunan

Hunan ranked 3rd nationwide in utilized foreign investment growth rate

Updated:2022-02-18 14:50:50

Foreign investment in Hunan Province has achieved a good start. In this January, foreign direct investment (FDI) into Hunan Province, in actual use, rose 277.8% year on year to 377.59 million USD, excluding banking, securities, and insurance sectors. The total amount and the growth rate ranked 9th and 3rd respectively in China. It was learned from the Department of Commerce of Hunan Province on February 16, 2022.

In terms of industries, Hunan’s manufacturing industry saw FDI inflows jump 2482% from a year earlier to 97.34 million USD, accounting for 25.8% of the provincial total. The FDI actual use in the producer services industry was 170.51 million US dollars, a year-on-year increase of 157.6% and accounting for 45% of the total. The actual use of FDI in high-tech sector increased by 825.4% year on year, accounting for 37.9% of the total.

Considering the investment sources, the capital mainly came from Hong Kong and the Netherlands. The actually-used FDI from Hong Kong accounted for 77% of the total, and that from the Netherlands accounted for 21%. Regionally, the actual use of FDI in Changsha accounted for 92% of the provincial total.

A person in charge of the department noted that Hunan Province has fully implemented the positioning, missions, and tasks of the Three Hubs and Four New Missions Strategy. Various measures to facilitate utilizing foreign capital in the manufacturing and high-tech fields have achieved remarkable results; the business environment has been continuously optimized; and, COVID-19 epidemic prevention and control has been powerful and effective. The increasing attractiveness to foreign capital has promoted a sustained and rapid growth of FDI actual use in Hunan Province.

According to data from the Ministry of Commerce, FDI into Hunan Province reached 2.41 billion USD in 2021, a year-on-year increase of 72.3%, which was 52 percentage points higher than the national average. There were 438 newly-established foreign-funded enterprises, grew by 63.4% year on year, which was 40 percentage points higher than the national average.

Translator: Yu Jiangjiang