After years of dedicated effort, the establishment of industrial agglomeration zones has become a key driver in Henan Province's economic and social transformation. These zones have begun to demonstrate their significant impact on the province's development, serving as a new engine for growth and modernization.
**Key Highlights of Industrial Clusters**
This year, Henan’s economy 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 has caught many by surprise. This fluctuation highlights the challenges faced by a province still heavily reliant on traditional industries such as steel, coal, and aluminum, which are vulnerable to market volatility.
Henan, traditionally an agricultural province, is currently in a phase of rapid industrialization and urbanization. However, its economic structure—characterized by a heavy reliance on energy-intensive and low-value-added industries—makes it more susceptible to external shocks. As demand weakens and competition intensifies, these sectors face deep challenges.
In this context, the performance of Henan’s 180 industrial clusters has been remarkable. According to data from the Henan Provincial Bureau of Statistics, profits from these clusters grew by nearly 25% year-on-year in the first four months of the year, outpacing the provincial average by over 13 percentage points. The clusters accounted for 37.2% of the total profit from large-scale enterprises, showing strong economic vitality.
In the first five months of the year, investment in the industrial agglomeration areas increased by 33.2%, making up almost half of the province’s total investment. Projects worth over 100 million yuan accounted for more than half of all major projects in the region, showcasing the growing momentum behind these clusters.
Since 2008, Henan has actively developed industrial agglomeration areas. These zones not only helped the province weather the international financial crisis but also became a crucial platform for economic transformation. By 2012, investment in the 180 clusters had surpassed 1 trillion yuan, with operating income reaching 2.47 trillion yuan and employing nearly 3 million people. Over half of the new jobs created in the province came from these areas.
**A New Growth Engine for County Economies**
The provincial government views industrial agglomeration areas as a vital growth pole, especially for county-level economies. They have driven industrial upgrading, promoted scientific development, and become the main channel for investment attraction and rural employment transfer.
Take Sheqi County, a historically impoverished area, as an example. Through the development of industrial clusters and urban-rural integration, the county saw a 23.1% increase in economic activity. Since 2009, 73 projects have been completed, generating over 6.5 billion yuan in revenue, with leading food companies contributing 4.5 billion yuan alone.
To support this growth, local governments have invested in vocational training, schools, hospitals, and housing, helping farmers transition into industrial jobs. In 2012, the park employed 19,000 people, with expectations to surpass 25,000 this year.
In Linyi, a once-agricultural county, a food industry cluster worth over 10 billion yuan has emerged, becoming a hub for leisure food production. Within four years, over 40,000 migrant workers returned home to find jobs locally.
With the expansion of industrial zones, urban populations have grown significantly, spurring the development of the tertiary sector. The rise in industry has also accelerated the migration of rural populations to cities, enabling large-scale agricultural management. Land transfer rates reached 54%, and the number of large-scale grain farms increased from 9 to 26 households. Farmer income exceeded the provincial average by nearly 2,000 yuan.
**Improving Development and Supporting Economic Transformation**
Governor Xie Fuzhan emphasizes that Henan is at a critical stage of transformation. While opportunities like the Central Plains Economic Zone and the Zhengzhou Airport Economic Experimental Zone offer potential, challenges such as resource constraints and rising competition remain.
To address these, the province aims to enhance the development level of industrial clusters, promote integrated urban-industrial growth, and strengthen innovation and sustainability. Currently, 55 clusters generate over 10 billion yuan in revenue, creating over 1.66 million new jobs and attracting more than 700 billion yuan in external investment.
However, some issues persist, including unclear core industries, weak clustering effects, and limited product competitiveness. Improvements in service infrastructure and intensive development are still needed.
Looking ahead, Henan aims to reach 1 trillion yuan in industrial added value and 4 million employees in its clusters by 2015, focusing on enhancing development quality, promoting interaction between industry and cities, and strengthening innovation-driven and sustainable growth.
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