On February 18, the CPC Central Committee and the State Council issued the Outline of the Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area (hereinafter referred to as the "Outline"). The 27,000-word document comprehensively plans the strategic positioning, development goals and spatial layout of the Guangdong-Hong Kong-Macao Greater Bay Area. It is a programmatic document guiding the current and future cooperation and development of the Guangdong-Hong Kong-Macao Greater Bay Area. Driven by national policies and local governments, the industry, economy and system of the Guangdong-Hong Kong-Macao Greater Bay Area are experiencing unprecedented integration and development, which also provides a broader stage for the development of companies in various industries. So, What’s the impact of the Outline on the imported food industry?
There is no doubt that transportation plays an important role in economic development. The outline proposes that the Guangdong-Hong Kong-Macao Greater Bay Area should build a modern comprehensive transportation system. In terms of shipping, we will consolidate and upgrade Hong Kong's position as an international shipping center and enhance the integrated services of international shipping services in Guangzhou and Shenzhen. In terms of Aviation transportation, the Greater Bay Area should construct a world-class airport system. We will consolidate and enhance Hong Kong's position as an international aviation hub, enhance the competitiveness of Guangzhou and Shenzhen airports as international hubs, and enhance the functions of Macao and Zhuhai Airports. On the highway transportation, we should perfect the comprehensive transport channel from Guangdong to the surrounding provinces and regions of the Area. In terms of railways, an intercity rapid transportation network with high-speed railways, intercity railways and high-grade highways will be built, with the focus on connecting the mainland with Hong Kong and Macao as well as the east and west sides of the Pearl River estuary.
The significant improvement of transportation in the Guangdong-Hong Kong-Macao Greater Bay Area is bound to have a profound impact on the imported food industry, especially the imported fresh food. The requirements for transport of imported fresh food is very high, so the development of the Guangdong, Hong Kong and Macao transport system can greatly improve the speed of fresh imports and reduce costs, which will also promote the consumption of fresh imports of mainland residents. In addition, in 2017, Guangdong province ranked first in the trade volume of imported food in China, and the construction of channels to other cities from Guangdong province will also facilitate the sales of imported food to other provinces and cities. In addition, the construction of an overland international thoroughfare connecting ASEAN countries will also facilitate the import of food from ASEAN countries to China.
Logistics is very important for the global trade cooperation between international enterprises. According to the outline, cooperation in logistics between Guangdong, Hong Kong and Macao should be promoted. Third-party logistics and cold-chain logistics should be vigorously developed. Supply chain management should be improved and international logistics hubs should be built. The improvement of logistics will promote the trade cooperation between the whole region and the international community. The development of cold chain logistics will also improve the quality of imported fresh food, thus enhancing consumers' confidence in imported fresh food.
In addition, the outline clearly states that we support Macao in accelerating the construction of a food distribution center for Portuguese-speaking countries, and support Hengqin in supporting Macao's development of cross-border e-commerce industry, and make it easier for products from Portuguese-speaking countries to enter the mainland market through Macao. Portugal, Brazil and other countries will export food to China more conveniently and fast. This is a great opportunity for food companies from Portuguese-speaking countries to enter the Chinese mainland market. Food from many Portuguese-speaking countries is expected to enter the Chinese market.
With the increasing younger consumers, more and more people choose to buy imported food to meet their demand. However, consumers have questioned whether imported food is "authentic". The outline points out that Guangzhou Nansha should be supported to build a global center for tracing the quality of import and export commodities and accelerate the pilot project of market procurement and trade.
The further construction and development of the traceability center will provide consumers with more clear and perfect information of imported commodities, guarantee the rights of consumers and make consumers more secure. For imported food distributors, it can also guarantee the authenticity of the goods they purchase. It will also boost demand for imported food.
The exhibition in the import food industry's position cannot be ignored since it is trading platforms for Chinese buyer and the overseas supplier. The outline proposes to build a modern service industry system, to promote the professionalization and high-end development of producer services, such as business services and circulation services and to focus on conferences and exhibitions, shipping and logistics and other professional services.
The support of the "outline" for the conference and exhibition will promote the professional development of import food exhibition, improve the service level of the exhibition, make the exhibition better serve the import food enterprises, promote the growth of the trade volume of the whole import food market, and promote the expansion of the market scale of the whole industry.
In 2018, China's imported food market reached 480 billion yuan, with dairy products, edible vegetable oil, meat and aquatic products accounting for a large proportion of China's food imports. Guangdong province ranks first in China in terms of imported food trade, with a trade volume of 13 billion US dollars. Openness, cooperation and mutual benefit are among the basic principles of the Outline. The program calls for building a new system of an open economy, a high-level open platform, and better alignment of trade and investment rules with high standards. It also calls for more effective alignment of international and domestic markets and resources, and faster development of new strengths in international cooperation and competition.
The release of the outline will promote trade cooperation between more Chinese food import enterprises and overseas food suppliers. The improvement of various services and the increase of market products will also enhance consumers' confidence and purchase desire. It is expected that the market demand and trade volume will also continue to grow, and China's imported food market will become more and more prosperous and the scale will continue to grow. It is estimated that the scale of China's imported food market will exceed 500 billion yuan in 2019.
The Outline of the Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area will have a profound impact on the imported food industry.
