Guangzhou, capital of south China's prospering Guangdong Province, has worked out an ambitious plan to increase the net output value of its software industry to nearly 50 billion yuan (6.06 billion US dollars) by 2005.

According to official sources, the local government has instituted preferential policies to encourage the development of software industry in a bid to promote the overall local information industry.

Experts say that Guangzhou's software industry now has a solid foundation, and the city's total output for software and integrated systems products is expected to hit two billion yuan this year, with the figure doubled next year.

Local officials say the Tianhe Science Park alone is home to 87 enterprises specializing in the development of software products. The park, which was opened in August, has drawn 22.53 million US dollars in overseas investment.

Meanwhile, the Guangzhou municipal government also injected more than 10 million yuan (1.2 million US dollars) into key software developers in the park this year. (Xinhua)