After years of dedicated effort, the development of industrial agglomeration zones in Henan Province has emerged as a key driver in the province's economic and social transformation. These clusters have begun to significantly contribute to the region's growth, offering new momentum and reshaping the local economy.
**Key Highlights of Industrial Clusters**
This year, Henan's economic development has shown both stability and unexpected shifts. While the first-quarter GDP growth of 8.4% remains within the medium-to-high range, the subsequent slowdown caught many by surprise. This fluctuation highlights the challenges faced by an economy still transitioning from traditional industries to more modern and diversified sectors.
As a historically agricultural province, Henan is in a critical phase of industrialization and urbanization. However, its economic structure—still heavily reliant on energy and raw materials—has made it vulnerable to external shocks. Many traditional industries, such as aluminum smelting, steel production, and coal chemicals, are struggling due to weak demand and fierce competition. Their position at the lower end of the value chain makes them especially sensitive to market fluctuations.
Amid these challenges, the performance of Henan’s 180 industrial agglomeration areas has been remarkable. According to data from the Henan Provincial Bureau of Statistics, profits in these zones grew by nearly 25% year-on-year in the first four months of this year, outpacing the provincial average by over 13 percentage points. These areas accounted for 37.2% of the total profit of large-scale industrial enterprises in the province, showcasing their growing economic significance.
In the first five months of the year, investment in the industrial agglomeration areas surged by 33.2%, making up nearly half of the province’s total investment. Over half of the large projects under construction and newly launched were concentrated in these zones, highlighting their role as engines of growth.
Since 2008, Henan has actively developed industrial clusters as a strategic initiative. These zones not only helped the province weather the impact of the global financial crisis but also became a new platform for economic transformation. By 2012, cumulative investment in the 180 clusters had surpassed 1 trillion yuan, with operating income reaching 2.47 trillion yuan. The sector employed nearly 3 million people, with more than half of the new jobs created coming from these areas.
**A New Growth Engine for County-Level Economies**
The Henan Provincial Party Committee and Government view industrial agglomeration areas as a crucial driver for both the overall economy and county-level development. These zones have become key platforms for attracting investment, promoting agricultural employment transfer, and fostering scientific development.
Take Sheqi County, a once-poor rural area that saw little economic progress for years. Through the development of industrial clusters and urban-rural integration, the county experienced a significant turnaround. Its GDP growth reached 23.1% in recent years, reflecting the transformative power of these zones.
According to Xia Wenping, deputy director of the Sheqi Industrial Agglomeration Area Administrative Committee, over 73 projects were completed by 2012, generating more than 6.5 billion yuan in main business revenue. Among them, 18 food industry enterprises contributed over 4.5 billion yuan in sales, demonstrating the potential of specialized industrial clusters.
To support this growth, local authorities have implemented targeted training programs for farmers, aligning education with the needs of emerging industries. Additionally, infrastructure improvements—such as schools, hospitals, and affordable housing—have enhanced the quality of life in these areas. In 2012, the number of employees in the park reached 19,000, with projections to exceed 25,000 this year.
Industrial agglomeration has also spurred urban development. In Linyi, an agricultural county, a food industry cluster worth over 10 billion yuan has taken shape, becoming a major hub for leisure food production. Within four years, over 40,000 migrant workers returned home to find jobs locally.
As industrial zones expand, urban populations have grown from 140,000 to 240,000, driving rapid development in the tertiary sector. The industrial boom has accelerated the migration of rural populations to cities, enabling large-scale agricultural management. According to Wang Guoqian, head of the county party committee, land transfer rates have risen to 54%, while the number of leading agricultural enterprises has increased from 26 to 40. Large grain farms have expanded from 9 to 26 households, and per capita farmer income now stands at 9,446 yuan—nearly 2,000 yuan above the provincial average.
**Enhancing Development Levels and Supporting Economic Transformation**
Henan Governor Xie Fuzhan emphasizes that the province is at a critical stage of transformation, facing both opportunities and challenges. With the rise of the Central Plains Economic Zone and the Zhengzhou Airport Economic Experimental Zone, Henan is well-positioned to attract more investment. However, resource constraints, labor shortages, and rising regional competition remain pressing issues.
To address these challenges, the province aims to improve the development level of industrial clusters, promote integrated urban-industrial growth, and enhance innovation and sustainability. Currently, 55 of Henan’s industrial clusters generate over 10 billion yuan in revenue annually, creating over 1.66 million new jobs and attracting over 700 billion yuan in external investment.
Despite these achievements, some clusters still face challenges, including unclear core industries, weak clustering effects, and limited product competitiveness. Improving service functions and promoting intensive development remain key priorities.
Looking ahead, Henan aims to achieve an industrial added value of over 1 trillion yuan in its clusters by 2015, with more than 4 million employees. The focus will be on upgrading industrial development, strengthening urban-industrial interaction, and enhancing innovation and sustainable growth capabilities.
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