PRIMORSKY TERRITORY. A land of opportunities

  • Global hub for commerce, culture,
    business, and tourism in the Far East of Russia
  • Russia’s gateway to Pacific Asia
  • Growing economy and evolving regional
    markets
  • New industrial facilities and power plants
  • Proximity to major Asian economies
    and access to global transit networks
  • Highly developed transport and
    logistics infrastructure
  • Extensive tax incentives, duty-free benefits,
    and administrative preferences

Key Economic Drivers
Comprehensive government
strategies to strengthen economic and social environment in the Far East of Russia
are expected to bring 2 times GRP growth and 2.5 times growth of fixed capital
investment by 2025.

  • 4 advanced special economic zones (ASEZ)
  • 16 areas in the Free Port of Vladivostok
  • Offshore zone at the Russky Island
  • A Hectare in the Far East’ Program

Economy
on the Move

  • GRP-2017: 767.35 bln rubles – 132% growth
    by 2016
  • ranks 4th in Russia in a
    number of foreign direct investment projects
  • ranks 2nd in the Far East
    of Russia in industrial production
  • fixed capital investment: 87.85 bln rubles
    in Jan-Sep 2018, 117.9% growth
  • gross agricultural output growth:
    114% in 5 years
  • port capacity growth: 170% in 7 years

Output growth in industrial and commercial sectors
in Jan-Sep 2018 by the same period of 2017:

  • wood processing – 111.9%
  • production of healthcare products
    and medical supplies  – 121.7%
  • metallurgical industry – 119.9%
  • electric equipment industry – 116.5%
  • vehicle manufacturing – 128.3%
  • new housing – 380.1 thous. sqm , 1.6 times growth
  • retail turnover – 102.4%

A Growth
Region in the Far East of Russia

  • leader in the number of small businesses
  • leader in wholesale and retail turnover
  • 70% of tourist arrivals in the Russian Far East
  • 1/3 of population
  • 2/3 of seaport cargo
  • over 1/4 of agricultural produce
  • 1/5 of gross regional product
  • 1/5 of housing development
  • 1/10 of industrial production
    and fixed capital investment

Leading
Sectors


  • industrial production
  • construction and development
  • mining
  • forestry and timber
  • agriculture
  • wholesale and retail sector
  • fishing and fish farming
  • transport and communications

Business
Growth Focus

  • building materials industry
  • oil & gas / petrochem
  • shipbuilding and dock
  • vehicle manufacturing and aircraft
    engineering
  • food industry
  • hi-tech and specialist industries
  • transport infrastructure
  • tourism and leisure

Major
Russian and International Businesses

  • Rosneft, Transneft, Gazprom, Sollers,
    Mercy Trade, Rusagro
  • Republic of Korea: КОТРА, Lotte, Hyundai,
    Rolls-Royce Marine Korea, LG Electronics, Korean Air
  • Japan: Mitsubishi, Marubeni, Iida
    Group Holdings, Komatsu Corporation, Toyota, Mazda, Hokkaido Bank
  • China and Hong Kong SAR: Zhungding
    Corp., Bank of China, Melco International Development, NagaCorp Ltd
  • Siemens, Nycomed Pharma, Ernst &
    Young, etc.

Flagship Projects

  • Nadezhdinskaya ASEZ: a multi-functional industrial and commercial precinct with an intermodal
    transport and logistics hub
  • Milkhailovsky ASEZ: an agro-industrial park featuring a full cycle of production,
    processing, storage and efficient logistics of agricultural commodities
  • Bolshoy Kamen ASEZ is going to be the world’s largest shipyard
  • Petrochemical ASEZ: production of gasoline, polypropylene, and consumer goods

Among the ASEZ initiatives are construction of Russia’s largest Eastern
Petrochemical Complex, Nakhodka Fertilizer Plant, and Zvezda Shipyard. The food
and agribusiness projects include Far East’s biggest dairy, meat-processing, and poultry plants, modern greenhouse facilities, as
well as farm vehicle and agricultural machinery assembly plants.

The Free Port projects
include an Indian diamond manufacturing unit, an advanced industrial and
logistics site, a children’s medical center, a Japanese rehabilitation
center, and a 850 thous. sqm residential development
in Vladivostok. Plans are underway for construction of advanced fish handling
and storage facilities, new residential estates, shopping malls and leisure
venues, as well as warehousing facilities, hotels, packaging and building
materials production plants, to mention just a few.

ASEZ and Free Port of Vladivostok: 800+
residents, 1.3 trln rubles of investment, 70,000 jobs.

The region’s transportation infrastructure is now undergoing major upgrade and
development with new highways, bridges, traffic interchanges, and
transportation & logistics centers. Development of Primorye-1 and
Primorye-2 international transport corridors will connect Heilongjiang and
Jilin provinces of Northeast China and southern seaports of Primorsky Territory. These flagship projects are expected to
grow the gross regional product by 4-5% annually and to create over 3,000 new
jobs, with prospective freight volumes to reach 45 million tons in the long
term.

A Hectare
in the Far East
is a federal program which offers Russian citizens free land
for business or real estate development. The program is going to be an
important economic driver for the Far Eastern District and to catalyze population
growth to 36 mln (almost sixfold) by 2025.

Globally Connected

  • a prime destination for
    international businesses to reach new markets in the Far East of Russia
  • a key location to access the
    fast-growing markets of the Pacific Asia
  • international trade grew to 113% in
    Jan-June 2018, reaching  US$3.55 billion
  • export growth – 116.2%, import
    growth – 109.9%
  • over 100 foreign trade partners
  • major trade partners: China,
    Republic of Korea, and Japan
  • 23 international consular missions
    and offices
  • over 1,000 foreign-invested
    enterprises
  • over 4 mln tourist arrivals in 2017
    – 130% by 2016
  • facilitated visa procedures:
    electronic visa for 18 countries
  • a key international platform for
    discussing political and economic issues between Russia and Pacific Asia.

Since
2015, Vladivostok hosts the Eastern Economic Forum attended by national leaders
of the Asia-Pacific Region and the international business community. At the
2018 EEF, Primorsky Territory signed
over 50 agreements for the amount of 120 bln rubles.

Welcome to Primorsky Territory!

References: Russian Federal Statistics Service
(www.gks.ru),
Ministry for the Development of the Russian Far East (www.minvr.ru),
Primorsky Territory Government (www.primorsky.ru, www.primgazeta.ru),
Primorye Investment Agency (www.invest.primorsky.ru).

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