Archive for the ‘Jindo Export Processing Zone’ Category

Foreign Trade report on the Nampho SEZs (Jindo, Waudo)

Wednesday, May 18th, 2016

Nampho-EDZs-Google-Earth

Pictured above (Google Earth): The approximate locations of the Waudo and Jindo Export Processing Zones

The North Korean quarterly magazine, Foreign Trade, published information on the Jindo and Waudo economic development Zones (straddling the Ryongnam Ship Repair Factory).

According to Foreign Trade (2016 vol 2, p6):

Economic development parks in the DPRK are booming recently.

The city of Nampho is conducting processing trade by relying on the bases in Jindo and Wau Islet, taking advantage of its favourable economic and geographical conditions.

As a gate city on the coast of the West Sea of Korea, the industrial city has an international port.

The city, situated on the lower reaches of the Taedong River, boasts metallurgical, machine building, glass-making industries, and lead and zinc refi ning, silk fabrics and shipbuilding bases.

It has the country’s biggest salt works and a fishing station, a fishing implements manufacturing factory and a refrigerating plant.

The Port of Nampho, the biggest of its kind in the western part of the country, is at the northern shore of the Taedong’s entrance to the sea. The water is deep, the port itself is far inside the estuary of the Taedong River and the dams of the West Sea Barrage stand high, assuring safe navigation by ships.

There are around ten major berths and crane ships, loading bridges and conveyor belts.

Wau Islet off the port is one of the famous tourist spots.

The port is linked with over a hundred foreign countries and regions for commercial trade.

Jindo Processing Trade Zone
The zone aims at producing various kinds of light industry and chemical goods made from duty-free raw materials for export.

Cooperation period: 50 years

Project plan: The coverage of the zone is about 1.8 sq km. By taking advantages of the Port of Nampho nearby and tens of years of development of the machine-building, electronical and light industries in Nampho, it processes various goods and exports them. Enterprises are admitted to it on the principle of conserving the environment and saving energy. It strives to develop new products and industrial fields, realize technical transfer with other countries and thus contribute to revitalizing the domestic industry. It is also making efforts to develop into a processing trade and bonded trade area.

Waudo Processing Trade Zone
The zone aims at developing into an intensive processing trade zone by introducing advanced development and operation mode and by placing stress on export-oriented processing and assembling.

Cooperation period: 50 years
Gross Investment: About USD 100,000,000

Project plan: The zone covers an area of about 1.5 sq km. By utilizing its favourable conditions, it puts main emphasis on bonded processing, processing to order, barter trade and other types of export-oriented processing industry.

It aims to develop into a comprehensive zone with financial, tourist, real estate and foodstuff industry bases in the areas around the port and the scenic area around the West Sea Barrage.

Cooperation mode: Joint venture between corporate bodies of the DPRK and foreign investors or wholly foreign-owned enterprises.

Location: Some parts of Ryongnam-ri, Waudo District by the estuary of the Taedong River southwest of the city.

Infrastructure condition: Only 50km away from Pyongyang and a few kilometres between the port, the biggest international port in the country, and the railway station.

From the port it is 330km to Dalian, 332km to Weihai, Shandong, 930km to Shanghai and 695km to Tianjin, China, and 1 575km to Chinese Taipei. The Youth Hero Road between Pyongyang and Nampho facilitates the few scores of kilometres of travel to the Pyongyang International Airport. These all provide favourable conditions for domestic marine transport and entry and exit of foreign personnel, materials and funds.

A 600,000kW-capacity power station and 10,000kW-capacity tidal power station are intended to be built near Kwangnyang Bay beside the West Sea Barrage. The Taedong fully guarantees water supply.

The site was formerly occupied by a salt farm, so problem of removing structures does not arise. The area is 40m above sea level and flat.

National Economic Development Guidance Bureau, DPRK Ministry of External Economic Relations
Add: Taedonggang District, Pyongyang, DPR Korea
Tel: 0085-02-381-5912
Fax: 0085-02-381-5889
E-mail: sgbed@star-co.net.kp

A screen shot of the original article can be seen here.

NK News has additional analysis here.

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North Korea’s Ministry of External Economic Affairs stresses business at economic development zones is gaining momentum

Friday, October 10th, 2014

Institute for Far Easter Studies (IFES)

In a September 29, 2014 interview by the Choson Sinbo, Director of North Korea’s Ministry of External Economic Affairs, Oh Tae Bong, reported that business in North Korea’s newly established economic development zones (EDZ) is gradually being ramped up. In the interview, Oh mentioned the Jindo Export Processing Zone in Nampo City as an example where foreign investment capital is being prepared for the construction of substructure facilities such as piers and power plants and factories for heavy industry like cement and steel.

The Jindo Export Processing Zone carries out technology transfers and exports completed industrial products to foreign countries. Specifically, Secretary Oh emphasized, “Several countries have expressed great interest in the Jindo Export Processing Zone, and investment contracts have already been signed with a few targets such as Hong Kong.” If the Jindo Export Processing Zone succeeds, it is expected that more processing zones will be developed around the country. If development goes smoothly, the structure of primary export products, including underground resources, would change drastically and promote product diversification.

Secretary Oh also talked about the results achieved through economic cooperation with neighboring countries, saying, “Our nation is consulting with Russian governmental organizations regarding the cooperation issues experienced with railroad reconstruction and modernization.” He mentions that certain agreements have already been made in August 2014, and commented that “Relations between two countries have great effect on foreign economic activity, such as investments.” In other words, despite the US and UN imposed economic sanctions against North Korea, Russia has taken an active stance toward economic cooperation with North Korea.

With regards to the Ministry of External Economic Affairs (formerly the Ministry of Foreign Trade), Director Oh explained that the ministry was newly reorganized in June 2014 to expand the state’s foreign economic activities. According to Oh, the ministry will contribute to the strengthening of economic ties between nations, and take unified command over trade, joint ventures, attraction of foreign capital, and economic development zones.

More specifically, Secretary Oh stated that “Since the Ministry of Trade, the Joint Venture and Investment Commission, and State Economic Development Committee have all been combined into one body responsible for foreign economic enterprises, business complexity has disappeared and unity has been secured.” It is said that, first, the process procedures necessary in economic trade activities have been simplified. Second, the combining of various departments among the three committees into one single organization has improved work efficiency. Finally, the agency-centered system has disappeared, allowing for a much more efficient foreign economic industry.

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First bonded processing area to be set up

Saturday, September 20th, 2014

From the Pyongyang Times (2014-9-20) No. 38 (2813), p4:

The Presidium of the Supreme People’s Assembly issued a decree establishing Jindo export processing area in Nampho on July 23.

The second SEZ in Nampho after the Waudo export processing area which was set up last year, the Jindo export processing area will be the first bonded processing trade hub among the 24 special economic zones built in the country.

Part of Ryongnam-ri in Waudo-District sitting on both sides of the road leading to the West Sea Barrage from the lower reaches of the Taedong River in southwest Nampho, it covers an area of 1.8 sq kilometers and has very favorable conditions of infrastructure.

It is also near Nampho Port, trade port directly leading to China and southeast Asia, and Pyongyang and Nampho cities boasting machine-building , electronic and light industries. It will provide the region with every potential for industrial growth and enough manpower.

The area is aimed at bringing in raw materials duty free and producing light industrial and chemical goods for export.

To this end, it plans to build a bonded processing trade area that encourages processing export by allowing businesses to be built on the principle of environmental protection and energy saving and promoting technology transfer and introducing new products and industrial sectors from other countries.

According to the first-stage development plan, the area will cover 180 hectares, which will be divided into 10 sections of electric and electronic appliances , leather, shoes and other light industrial goods, machine and metal products, chemical, rubber and plastic goods, fibre and clothes-making, bonded warehouses and and exhibitions, management and service, power station and reserve area.

Premiums and privileges will be offered to investors in the area according to the law on economic development zones and its enforcement rules and regulations.

The master plan of the processing area is now under examination and investors are making field surveys.

By Cha Chol

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DPRK announces six more economic development zones

Wednesday, July 23rd, 2014

According to KCNA:

Economic Development Zones to Be Set up in Provinces of DPRK

Pyongyang, July 23, 2014 17:50 KST (KCNA) — It was decided in the DPRK to establish economic development zones in some areas of Pyongyang, South Hwanghae Province, Nampho City, South and North Phyongan provinces.

Unjong cutting-edge technological development zone will be set up in some areas of Wisong-dong, Kwahak 1-dong and Kwahak 2-dong, Paesan-dong and Ulmil-dong in Unjong District, Pyongyang.

Kangryong international green model zone will be set up in some areas of Kangryong township in Kangryong County, South Hwanghae Province.

Jindo export processing zone will appear in some areas of Jindo-dong and Hwado-ri, Waudo District, Nampho City.

Chongnam industrial development zone will be set up in some areas of Ryongbuk-ri, Chongnam District, South Phyongan Province. Sukchon agricultural development zone will appear in some areas of Unjong-ri, Sukchon County and Chongsu tourist development zone in some areas of Chongsong Workers’ District and Pangsan-ri, Sakju County, North Phyongan Province.

The sovereignty of the DPRK would be exercised in the economic development zones in provinces.

The relevant decree of the Presidium of the Supreme People’s Assembly was promulgated on Wednesday.

By my count, this brings the total number of special economic zones and economic development zones to 25. Little visible progress has been made on the zones announced in 2013, though things seem to be happening in Pyongyang. Also, South Phyongan Province now has Economic Development Zones. It had been omitted from previous lists.

Yonhap also reports:

Jin Qiangyi, a professor of Korean studies at Yanbian University, told the state-run China Daily that the move by North Korea is apparently aimed at breathing new life into its moribund economy.

“Many Chinese companies still feel daunted by doing business in the country because there is no clear policy to guarantee investors’ interests,” the newspaper quoted Jin as saying.

However, another Chinese expert, Li Tianguo, a researcher at the National Institute of International Strategy at the Chinese Academy of Social Sciences, was less pessimistic.

Li told the newspaper that the new zones will “have great attraction to Chinese enterprise and bring good opportunities, in particular for businesses with border trade and processing production.”

China’s direct investment into North Korea jumped to US$109.46 million in 2012 from $5.86 million in 2009, the newspaper reported, citing what it called a “2012 Statistical Bulletin of China’s Outward Foreign Direct Investment.”

Here is analysis by the Institute for Far Eastern Studies (IFES):

North Korea Declares Six Additional Economic Development Zones

On July 23, 2014, the (North) Korean Central News Agency (KCNA) announced the designation of six additional economic development zones (EDZs) throughout various provinces in North Korea. The announcement, which states, “It was decided in the DPRK to establish economic development zones in some areas of Pyongyang, South Hwanghae Province, Nampo City, South and North Pyongan Provinces,” and that this decree was promulgated by the Presidium of the Supreme People’s Assembly (SPA).

It was announced that North Korea will push forward with the Unjong Cutting-Edge Technological Development Zone in the areas of Wisong, Kwahak 1 and 2, Paesan and Ulmil, located in the Unjong District of Pyongyang. Furthermore, it appears that the Kangryong International Green Model Zone will be established in Kangryong County in South Hwanghae Province. According to the investment propositions revealed in November 2013, the “International Green Model Zone” will focus on the development of organic farming and greenhouse technology, wind and water power technology, and the development of services such as golf courses and hotels.

The Chongnam Industrial Development Zone will be set up in Chongnam District in South Pyongan Province, Sukchon Agricultural Development Zone will be established in various areas in Unjong in Sukchon County, and the Chongsu Tourist Development Zone will cover the areas of the Chongsong Workers’ District and Pangsan, Sakju County in North Pyongan Province. It has also been reported that North Korea will push forward with the Jindo Export Processing Zone in Jindo and Hwado, located in the Waudo District of Nampo City. Following the announcement of thirteen new economic development zones in November last year, including the Amrok (Yalu) River EDZ, Sinpyeong Tourism Development Zone, the Manpo EDZ and Wiwon Industrial Development Zone, the newly announced six additional zones brings the total number of economic development zones in North Korea to nineteen.

It was also reported by the KCNA on the same day that the Sinuiju Special Economic Zone in Sinuiju, North Pyongan Province, will be renamed to the Sinuiju International Economic Zone. Through this renaming, it can be assumed that North Korea is intending to reinitiate development in the stagnating zone, which has been in the development process since first being designated as a special economic zone in 2002.

On the other hand, the Wonsan Kalma Peninsula in North Korea’s Kangwondo Province, renowned for its beautiful scenery, has been garnering attention due to a recent push for the construction of large-scale accommodation, recreation and industrial facilities. Over 1,400 ha plot of land along the Kalma Peninsula is expected to be divided up into several areas, including hotels and accommodations, conference and exhibit fairgrounds, an athletics stadium, economic development area, and a commerce service area.

In order to respond to the increase in tourists visiting the Wonsan area, North Korea is preparing to increase the area’s hotel and lodging capacity by ten times, maxing out at a total capacity of eleven thousand people. Furthermore, plans have been drawn up calling for the construction of a passenger wharf which can transport up to twenty-five thousand people per day to the waterfront. The beach area will also be developed, allowing for up to ten thousand beachgoers at one time.

In the Dunam Mountain area of Kalma Peninsula, theaters, golf courses, an underwater hotel, and tourist accommodations will be built together with industrial complexes for science, industry and agricultural research and development. It is also predicted that North Korea will also develop several of the small islands off the coast of the Kalma Peninsula into tourist attractions.

I have all of the economic Development Zones mapped out on Google Earth.

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