Tianjin eyes US$2.5b from overseas

PUBLISHED : Saturday, 17 January, 1998, 12:00am
UPDATED : Saturday, 17 January, 1998, 12:00am

Tianjin city plans to attract US$2.5 billion in foreign investment this year, targeting investors from Europe and the US.

The city government will give priority to investors in the petrochemical, metallurgical and textile sectors, Xinhua said yesterday.

It said officials also wanted foreign funds to help in building up and improving the city's infrastructure facilities, including road links and airport upgrading.

Foreign investors will be able to take up part of the operational rights in high-risk, long-term investment projects such as water plants and power plants.

The government is also offering foreign investors the opportunity to invest in the reform of decaying state-owned enterprises through takeovers or mergers, as part of its attempt to breathe life into the moribund state sector.

It hopes to lower the number of loss-making enterprises to 20 per cent of the city's total within three years, with enterprises' debt-to-equity ratio cut to below 60 per cent.

Tianjin is now home to 195 multinationals, investing in about 300 projects.