Hainan FTP enhances policy support for manufacturing industry

The manufacturing industry in the Hainan free trade port (FTP) is embracing intensive policy support which will bring major development opportunities for the sector, reported Economic Information Daily Wednesday.

The Hainan Provincial Department of Industry and Information Technology recently issued a report which has sorted out and deeply analyzed 20 manufacturing sectors with prospects in Hainan FTP, including jewelry processing and manufacturing, yacht maintenance, biomedical manufacturing, etc., with the aim to provide enterprises with investment guidance.

It's learned that the second list of manufacturing sectors with prospects involving new energy vehicles (NEVs), chips, etc. is also being worked out.

In the 2020-version catalogue of industries encouraging investment in Hainan FTP issued in January this year, manufacturing occupies the most items with the number standing at 27.

The 2020-version negative list for foreign investment in Hainan FTP taking effect from February 1 this year has also further relaxed access to manufacturing.

On May 17 this year, Hainan issued a three-year (2021-2023) action plan for investment in Hainan FTP, proposing to give higher priority to achieving quality, efficient and stable manufacturing development, and increase the share of manufacturing in investment.

Hainan will deploy the manufacturing and maintenance of high-end equipment such as NEVs, intelligent vehicles, aircraft, robots, offshore equipment and yachts in Haikou National Hi-tech Industrial Development Zone, Yangpu Economic Development Zone, Taling Industrial Park in Ding'an County, Mutang Industrial Park in Danzhou City, and other industrial parks, said Li Guantao, head of the fixed assets investment division of Hainan Development and Reform Commission.

It's worth noting that Hainan will focus on the development of advanced manufacturing, as well as the combination of traditional manufacturing and high-tech industries.

The above-mentioned three-year action plan has clarified to encourage and support large-scale equipment enterprises at home and abroad to transform their technological achievements in Hainan, promote green and intelligent technological upgrading of enterprises in the province, apply new technologies to improve the quality and efficiency of traditional industries, and foster the deep integration of the internet, big data, and artificial intelligence with manufacturing.

Industry insiders believe that Hainan FTP's trade and investment liberalization and facilitation policies, such as the processing added value policy, zero-tariff policy, and corporate income tax and personal income tax reduction and exemption policies, will unleash the huge potential of advanced manufacturing in the port.