Utilization of foreign capital

There was a moderate increase of 8.1 per cent in the value of foreign direct investment in Henan province in 2000. 237 FDI projects were approved in that year, with a total contract value of US$699.21 million. The increase in the FDI contract value was attributed to the increase in equity joint ventures, which offset the negative growth in both contractual joint ventures and solely foreign owned enterprises (see Table 7.16.4).

Table 7.16.4: Utilisation of foreign capital, Henan Province, 1995 and 2000

	Approved contracts			Actual utilization
Mode	Number	Total value (US$ million) year's total value	% change over previous year	Total value (US$ million) year's total value	% change over previous year
1995
Direct foreign investment:	805	915.67	16.43	476.22	23.47
Equity joint ventures	60	519.12
Contractual joint ventures	61	279.89
Solely foreign-owned enterprises	144	116.66
2000
Direct foreign investment:	237	699.21	8.1	564.03	62
Equity joint ventures	139	457.57	22.8	412.18	67.7
Contractual joint ventures	26	149.68	-11.6	81.85	-42.8
Solely foreign-owned enterprises	72	91.78	-12.4	70.00	-47.2

The FDI projects approved in 2000 covered more than 40 different sectors. There were 197 production projects with a total contract value of US$570.09 million, accounting for 81.53 per cent of the total. The remaining 40 projects were service- related . The FDI came from 37 countries and regions ; the key sources of the province's FDI are shown in Table 7.16.5.

Table 7.16.5: Key sources of FDI, Henan Province

Source	Number of projects	Actual utilization (US$ million)
Hong Kong	89	371.35
UK	6	114.55
Singapore	10	30.45
Thailand	5	24.85
USA	41	18.76
British Virgin Islands	7	15.85

A total of 6,413 foreign-invested enterprises had been approved by the end of 2000 and more than 2,000 of these had begun production, employing a total work- force of over 300,000. Exports from foreign-invested enterprises in 2000 came to US$308.36 million, an increase of 29.8 per cent on 1999 and accounting for 20.65 per cent of the province's total export value.