Local Economy

Last updated: Thursday, February 21, 2019


Actively Creating “Clean Land” Fund for Investment Attraction

Posted: Thursday, April 12, 2012

With abundant potential and quite appealing policies, investment attraction efficiency in Dong Thap Industrial and Economic Zones (IZs and EZs) has seen much positive change. The foundation and development of local IZs and EZs, during economic restructuring toward industrialization, has become an important motivation for local strong economic growth. Mr Nguyen Huu Hong, Director of Dong Thap EZ Management Unit, shared with Vietnam Business Forum in regard to this success. Thuy Linh reports.
One of the most notable successes is that Dong Thap has formed a quite comprehensive IZ-EZ network. Can you tell us more about specific achievements in the development of local IZs – Ezs as well as the process of investment attraction into IZs-EZs so far?
At present, Dong Thap has 3 IZs (Sa Dec, Tran Quoc Toan and Song Hau) and 01 EZ (including 2 international border gates of Dinh Ba and Thuong Phuoc) which are operating quite efficiently, with 53 projects registering to invest; in which there are 04 foreign-funded ones with total registered capital of VND 4,095 billion and USD 27.86 million.
Sa Dec IZ was established in 1998, currently having 43 projects with Investment License and total investment funds of VND 3,269 billion and USD 27.86 million; Tran Quoc Toan IZ was formed in 2005, now having 4 projects with Investment License and total investment fund of VND 163 billion; Song Hau IZ was founded in 2009, at present having 5 project with Investment Licenses and total investment fund of VND 612 billion. Despite not selecting investment projects, given existing advantages, Dong Thap IZs give priority for investment attraction to fields of infrastructure in planned IZs, Ezs; manufacturing and assembling mechanical products of high quality to serve agricultural production and supporting industries; production of vegetable, fruit and mushroom for export; consumer goods; electronics industry and other clean industries.
Dong Thap EZ was founded under Decision 306/2007/QĐ-TTg dated March 13th 2007 by Prime Minister, on an area of nearly 32,000 hectares. Attention has been paid to construction of infrastructure in border-gate EZ by province since 2005, mainly funded by the National Budget under the target programme in Thuong Phuoc international border gate, which was then expanded in Dinh Ba international border gate in 2009. At the moment, the province has built resettlement areas, provided compensation for site clearance in specialized zones to establish land fund for investment attraction and is constructing external traffic routes such as: Roads to International Border Gates of Thuong Phuoc and Dinh Ba; Control Station in Dinh Ba International Border Gate and internal traffic works in two border gates, gradually facilitating investment attraction into the border gate EZ. At present, the EZ has issued Investment License to 1 project with total investment of VND 50 billion, and intends to receive many other big ones.
They are great achievements that Dong Thap EZ-IZ has gained in the past. What factors have made Dong Thap in general and local EZs – Izs in particular so attractive to national and international investors?
There are many factors making the investment environment in EZs-IZs appealing to investors, but the primary one is that we have created a clean land fund and comprehensive infrastructure system, enabling investors to organize their production and business. Besides, Dong Thap has advantages in raising and processing agro-aquatic products, and friendly local authorities willing to help investors complete administrative procedures in a timely manner. Those are the factors that make up the attractiveness of Dong Thap and local EZs – IZs for both national and international investors.
In studying investment decisions, investor’s biggest concern is about the issue of “clean land”. How have EZs-IZs in Dong Thap province actively created clean land funds for investment attraction?
 As for IZs, the locality made compensation and conducted land acquisition on the area of IZs development planning, funded by National Budget assistance and local budget. Afterwards, infrastructure on raw land is invested by renting infrastructure enterprises. After levelling the site and investing in comprehensive infrastructure, they call investors to invest in and lease industrial land for production and business. Concerning the border gate EZ only, Management Unit will utilize funds from National Budget assistance and the local budget to invest in infrastructure; while at the same time mobilizing investment and leasing industrial land to investors for their production and business.
Are there outstanding issues in project planning and operation in provincial EZs-IZs? What are the policies to tackle them?
 It’s the Government itself making compensation and conducting land acquisition under applicable laws; with much complication and complaints, that is regarded as the biggest obstacle in the process of planning investment and putting IZs into operation. The provincial policy toward new IZs, according to development planning to 2020, is that the province will only play an orientation role and call for infrastructure investors to negotiate with local people by themselves. The authority will support them with administrative procedures to hand over land to investors after their completion of negotiations with people about compensation and assistance.
Can you share about development orientation of Dong Thap IZs-EZs to 2015? Do you have recommendations and proposals to foster activities of IZs-EZs?
Pursuant to Master Plan for IZ development to 2020 and Development Plan for IZ in period 2011-2015, orientation to 2015, Dong Thap has actively called for investment to fill the remaining area in current IZs. Investment has been made to expand Block A2 – Sa Dec IZ on 90 hectares, Tran Quoc Toan IZ on 70 hectares; and newly build Song Hau 2 IZ on 150 hectares.
 To boost activities of IZs –EZs, the Government should give incentives for investment into IZs. In addition, as EZs often have huge infrastructure and are located in difficult areas, it is recommended that the Government rapidly increase investment into EZ infrastructure. Investors will only be attracted with extremely preferential policies for the border gate EZ.

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