During the 10th Five-Year Plan period, Chinas logistics industry witnessed rapid growth. According to statistics of the National Development and Reform Commission, the National Bureau of Statistics of China and China Logistics and Purchasing Association, during the 10th Five-Year Plan period, the total amount of social logistics reached RMB 158.7 trillion, increasing 1.4 times compared with that of the 9th Five-Year Plan period, with an average annual growth of 23%, which is much higher than the GDP growth rate of 9.5%.
The ratio of the total amount of social logistics against GDP dropped from 19.4% in 2000 to 18.6% in 2005. In 2005, the amount of Chinas logistics exceeded RMB 1.2 trillion, with a YoY increase of 12.7%, took 16.6% of the added values of servicing industry.
As investment in logistics infrastructure is increasing in China, and logistics technique and equipment is enhancing, the logistics industry is booming. Pearl River Delta, Yangtze River Delta, Bohai Sea Rim Economic Zone and Northeast China are strengthening the consociation and coordination, constructing the vast environment for the development of logistics industry.
The rapid development of chain sales, auto, steel, medicine, and coal industry, arouses the development of related industries. With an enlarging scale and rapid growth speed, Chinas modern logistics is enhancing its operating efficiency, performing more obvious functions in supporting and promoting economic development.
In recent years, Chinas logistics market is opening up to the outside world. Logistics enterprises are reorganizing and integrating in the competitive environment. It is more and more obvious that state owned, private owned and foreign fund enterprises are surviving and thriving in the competitive markets.
According to the commitments of Chinese Government when entering WTO, China would open up the market of logistics industry since December 11, 2005. The year 2006 is the first year of Chinas 11th Five-Year Plan, and is also the first year when logistics is opened up completely. Chinas economic development strategies are becoming explicit and related policies are carrying out gradually. These will have profound influence on the logistics industry.
Integrated with traffic and transportation, storage and delivery, the logistics industry realizes low cost and high benefit in enterprises and society. Therefore, the logistics industry, together with the internet industry, is looked on as the important content of "New economy", and it is widely known as the third profit source and gold mine of the market. It is forecasted that during the 11th Five-Year Plan period, Chinas logistics industry will keep an annual growth of 20%.
From the year of 2006 to 2010, the basic frame and main functions of Chinas southern international logistics center will come into being. The proportion of logistics cost in GDP will decrease more than 3%. The third party logistics will share up to 23% in the logistics market.
With the increasing demand of logistics, the logistics service for enterprises will change from the low value fundamental services to high value added services. Logistics infrastructure, integrated logistics, traffic and transportation, and delivery services provide huge investment opportunities. However, the related risks must be put into account, and it should be cautious when choosing investment projects.
Source:未知