The picturesque Panlongdong Provincial Scenery Area in Yunfu, Guangdong Province

Yunfu, a city in the western part of Guangdong Province, is expecting foreign investment to play an even bigger part in the city's economic development during the 11th Five-Year Plan period (2006-10).

According to Ou Zhenzhi, mayor of Yunfu, the municipal government will try its best to attract more overseas investors to join the city's economic construction during the period.

Ou said Yunfu's targeted annual economic growth is 12 per cent in the next five years. This year, Yunfu's gross domestic product (GDP) is expected to grow at 13.5 per cent.

To reach the goal, Yunfu has to open wider to the outside world and seek more foreign financial support in the following years.

Currently Yunfu is competing with the prosperous cities in the Pearl River Delta to attract foreign investment.

Ou said his government had introduced a series of preferential policies targeting investors from around the world.

The series of preferential polices cover taxation, land use right, loans, labour force and transportation.

The introduction of the preferential polices is aimed at letting foreign investors earn their profits in Yunfu, a city that has abundant natural resources.

"In addition to less taxes, foreign investors will pay less for land use rights and the labour force and enjoy simplified approval procedures if they set up their foreign-funded companies and joint ventures in the city of Yunfu," Ou said.

Ou said Yunfu would try to become a new industrial production base for the Pearl River Delta, as well as oriented to the Hong Kong and Macao special administrative regions in the following years.

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