Local Economy

Last updated: Thursday, April 18, 2019


Enhancing Investment Quality in Industrial Zones

Posted: Saturday, April 14, 2018

In an effort to thoroughly unlock every potential and strength, accelerate investment promotion and attraction, intensify administrative reforms and improve the investment environment, Soc Trang province-based industrial parks have witnessed significant progress in investment attraction. Vietnam Business Forum Magazine has an interview with Mr Nguyen Van Kiet, Deputy Director of Soc Trang Industrial Zones Authority. Luan Nguyen reports.

What do you think about the investment attraction and business performance of industrial parks in Soc Trang province up to now? What solutions has Soc Trang province taken to improve the quality of investment flows into industrial zones?

According to the Prime Minister’s decision on industrial zone development to 2020, Soc Trang province will have six industrial parks (An Nghiep, Tran De, Dai Ngai, Vinh Chau, My Thanh and Long Hung) with an area of 1,109.33 ha. Specifically, An Nghiep Industrial Park, which was completed and put into operation in 2005, attracted 43 enterprises with 53 projects which hired 164.13 ha of land, an occupancy rate of 86.88 per cent. 25 companies with 31 projects have gone into operation.

In 2017, their industrial production value (based on the constant base price in 2010) was VND10,604.3 billion (including VND555.7 billion of foreign direct investment (FDI) enterprises), up 18.1 per cent from a year earlier and 20.5 per cent higher than the full-year plan, contributing 39.3 per cent of the province’s industrial value. Their export value grossed VND11,036 billion. In the first two months of 2018, their production value was VND1,380.1 billion, including VND86.1 billion from FDI enterprises, equal to 13.48 per cent of the yearly plan and up 5.7 per cent from the same period of 2017.

Tenants in industrial zones paid VND480 billion to the State Budget in 2017 and VND102 billion to the first two months of 2018. In addition to its economic contribution, An Nghiep Industrial Park also has a positive social role by employing 11,597 workers and accelerated labour structural shift from agriculture to industry and services.

In order to raise the quality of capital flows into industrial parks, the Soc Trang Industrial Zones Authority has stepped up handling projects on land violations and ineffective projects. Drawing experience in receiving investment projects, we always see project quality as an important factor. Thus, we focus on improving investment capital flows into industrial zones by accelerating investment promotion on the one hand and advising the Provincial People's Committee to pick up processing food, apparel and leather footwear projects, among others, from domestic and foreign investors with strong financial capabilities and modern environment-friendly production technologies to contribute greatly to the local economy in terms of production value, tax and job creation. At present, An Nghiep Industrial Park is accommodating major investors like Sai Gon Beer, Tan Hue Vien, Stapimex, Broadpeak Soc Trang (affiliated to Youngone Group of South Korea) and Dalat Milk (TH Group). Business performances of tenants are increasingly stable and rising.

In performing its function of State management over industrial parks, how has the Soc Trang Industrial Zones Authority actively worked with investors?
With the philosophy of “supporting the business community”, in order to timely tackle difficulties relating to enterprises’ investment, production and business activities, the Soc Trang Industrial Zones Authority has held dialogues to gather feedback and suggestions on State policies and mechanisms concerning business operations from local businesses, which it directly handles or recommends to competent provincial and central agencies for consideration and solution.

In addition, to accelerate investment promotion, the Soc Trang Industrial Zones Authority has submitted to the Provincial People’s Committee for consistent promulgation and implementation of investment support and stimulation policies for projects in industrial zones, paced up administrative reform, simplified procedures and reduced the service time, fully implemented incentives that investors are entitled to get, and facilitated businesses and investors from starting projects to officially bringing them into operation. Investors are also provided with information about domestic and foreign markets, supported with costs to attend fairs, exhibitions and advertisements and vocational training for workers.

How has the infrastructure system in industrial parks been invested and how has it been supplemented every year to attract businesses? How are infrastructure development investment plans in industrial parks in 2018?
In the past years, the province has invested in only one industrial park out of six licensed. Funded by the State budget, An Nghiep Industrial Park has relatively complete infrastructure. Every year, the Soc Trang Industrial Zones Authority maintains and upgrades the infrastructure system using infrastructure rentals collected from existing tenants.

Regarding infrastructure development investment plans in 2018, the Soc Trang Industrial Zones Authority first advises the Provincial People’s Committee to submit to the Government for approval of adjustments and supplements to the Soc Trang Industrial Zone Planning to 2025, with a vision to 2030. With the adjustment, some industrial parks will be removed from the planning and some will be expanded. The total area of six industrial zones will be 1,400.88 ha.

The authority will make detailed construction plans, clear the ground, and establish or propose investment attraction projects for technical infrastructure construction in the form of public-private partnership (PPP) or centrally funded budget in Song Hau - Soc Trang and Tran De industrial parks.

Would you be kind enough to tell about investment attraction policies in Soc Trang province-based industrial parks to 2020, as well as solutions to improve investment attraction efficiency?
On policy, Soc Trang province adheres to laws on land and tax, and offers best local incentives to investors like reducing and exempting taxes and fees within its capacity, supporting investors to settle administrative procedures and project deployment procedures (formulating policies on investment incentives for each industrial zone).

On solutions, we will organise investment promotion such as joining in investment promotion conferences and trade fairs, delivering leaflets, operating websites and connecting local agencies. We also invite domestic and foreign investors to invest in infrastructure construction and operation, and in production in industrial zones.

Thank you very much!

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