The development of industrial zones and export processing zones is playing an important role in realising the target of becoming an industrialised nation by 2020.
The Vietnam Real Estate Association, PhuQuocLand Group and Sao Khue Communications Corporation organised an international exhibition and conference on industrial parks called VietIP 2010 in Ho Chi Minh City on May 7 and 8, 2010.
Reasons for choosing Vietnamese industrial parks
According to the organising board of VietIP 2010, not only Vietnamese businesses and investors, but also many international institutions and investors are interested in this event. A group of 30 Japanese companies registered to attend with the hope of finding investment opportunities directly from the conference.
Representatives of Japanese companies said the Government of Vietnam was actively opening its market, especially the service market, in accordance with its membership commitments with the World Trade Organisation (WTO). Besides, with an expanding population, growing per capita income and developing consumer market, many companies are keeping an eye on the Vietnamese market.
Previously, Japanese companies mainly invested in manufacturing but they might focus more on services, telecommunications, finance, banking and distribution in the coming time.
Similarly, VietIP 2010 is also of deep interest of Taiwanese investors. “It is impossible to find elsewhere sustainable economic development like in Vietnam. This is the best opportunity for foreign companies to capture,” said Arthur Ting, President of CT&D Group, a big economic group in Taiwan.
Mr. Vu Thanh, President of PhuQuocLand Group, founder and executive of VietIP 2010, said: The purpose of VietIP is to introduce industrial parks, economic zones and export processing zones in Vietnam to domestic and international companies and investors with plans to expand or relocate their factories in Vietnam.
He said when investing in Vietnam, most foreign companies choose to establish their production facilities in industrial zones because they offer full, comprehensive infrastructure like power, water supply systems and wastewater treatment facilities.
“Moreover, industrial zones in Vietnam are located in the most convenient locations in terms of transportation,” Mr. Vu stressed.
Coordination, not competition
Dr. Tran Hong Ky, Director of Department under the Ministry of Planning and Investment, said: Vietnam now has 228 industrial zones in 56 provinces and cities, with a total area of about 58,434 ha, of which 145 have been put into operation and 83 are under construction.
Most industrial parks are located in southeast region, the Red River Delta and Mekong River Delta.
However, in practice, investment flowing into industrial zones and export processing zones is decreasing. According to the Ministry of Planning and Investment, since late 2009, foreign investment capital has been chiefly channelled into urban development and real estate projects located outside industrial parks and export processing zones.
Many industrial zones have not attracted any new projects in the past two years. According to statistics collected by the Ministry of Planning and Investment, the overall occupancy rate of industrial zones in the country reaches only 46 percent.
This setback is attributed to competition instead of coordination among industrial parks for joint national benefit. Investment promotion forms are relatively poor and lack of distinctiveness.
Mr Nguyen Trung Kien, Director of VietIP Investment Promotion Centre, said that investment promotion activities lack medium and long-term planning and strategies. Authorities lack information about domestic and foreign investors.
However, the situation is expected to improve following the formation of Vietnam Industrial Real Estate Association and the VietIP Investment Promotion Centre at the VietIP 2010 exhibition and conference. This may increase leverage to promote investment in Vietnamese industrial zones and export processing zones.
The establishment of the Vietnam Industrial Real Estate Association is expected to promote operating efficiency, and open development and cooperation opportunities with the world.
The VietIP Investment Promotion Centre will link all the Industrial Park, Export Processing Zone Authorities and Economic Zone Authorities across the country and more than 75 domestic and international business associations to promote, advertise, consult and guide investments into industrial parks and export processing zones in a professional and long-term manner.
C.P
Vietnamese
