Utilization of foreign capital

There were 320 foreign direct investment projects approved in Hunan in 2000, involving a total FDI contract value of US$667.09 million, an increase of 32.89 per cent over 1999. The contracted investments in equity joint ventures and wholly foreign-owned enterprises grew by 39.84 per cent and 46.69 per cent respectively while investment in contractual joint ventures shrank by 7.58 per cent (see Table 7.18.4).

Table 7.18.4: Utilization of foreign capital, Hunan 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:	574	1,354.62	97.5	488.02	50.11
Equity joint ventures	343	358.05		342.57
Contractual joint ventures	48	446/27		42.07
Solely foreign-owned enterprises	183	550.30		103.38
2000
Direct foreign investment:	320	667.09	32.89	681.82	4.30
Equity joint ventures	123	185.56	39.84	326.71	7.00
Contractual joint ventures	36	106.32	-7.56	73.28	-10.93
Solely foreign-owned enterprises	163	372.96	46.69	279.4	4.99

Of 320 projects with foreign direct investment, 262 were production-orientated with a total contract value of US$502.41 million and 58 were non-production related , with a contract value of US$164.68 million.

Foreign direct investments came from 31 countries and regions . The main sources of FDI are shown in Table 7.18.5.

Table 7.18.5: Key sources of FDI, Hunan Province

Source of FDI	No. of projects	Contract value (US$ million)	Actual utilization (US$ million)
Hong Kong	150	298.06	323.81
Taiwan Province	69	65.37	69.50
The Philippines	6	57.65	4.12
UK	2	29.23	4.02
USA	28	29.11	55.37
Republic of Korea	7	28.71	73.29
Germany	5	23.12	49.45
Macao	7	21.72	18.26
Singapore	6	21.56	12.37
Australia	9	18.06	18.07

By the end of 2000, a total of 5,712 foreign-invested enterprises had been approved in the province. These contracts involved US$7.406 billion and the actual utilisation was US$5.238 billion. Over 2,000 of the approved FIEs had opened for business or started operation by the end of the year, employing about 250,000 workers. In 2000, the total sales revenue by the operating FIEs was RMB23.7 billion and the tax contribution was RMB1.17 billion. In 2000, FIEs generated US$182.50 million of export earnings, and purchased US$294.67 million worth of goods from overseas, accounting for 11.04 per cent and 34.28 per cent respectively in terms of the province's total export and import.