Investment flows into Vietnamese industrial parks (IPs) and export processing zones (EPZs) have sharply dropped over the past recent years, which proved their unattractiveness to investors, according to experts.
Twelve 12 IPs and three EPZs in Ho Chi Minh City licensed a total 12 projects in the first half of this year, or less than one project per IP and EPZ on average, a very modest figure.
Only one among 12 IPs in Ba Ria-Vung Tau province has been fully occupied, while three others are still vacant. Between January and June, local IPs attracted just nine projects, including four foreign-invested ones.
Danang city, where boasts the highest number of IPs and EPZs in the central region, is also on the same boat as its IPs occupancy rate is estimated at 12%. Local IPs licensed 10 projects in the first six months, but three revoked due to their sluggish implementation.
Earlier, the Ministry of Planning and Investment said that Vietnam now has 228 IPs, including 162 put into operations; however, only 48% of their total areas have been leased.
Weak infrastructure and the shortage of qualified laborers are among major reasons hindering investments into IPs and EPZs, analysts said.
Taiwan’s Foxconn Group, which announced to pour US$5 billion into Vietnam within five years, gave up their investment plan in Tan Phu Trung IP in Ho Chi Minh City after recognizing the poor infrastructure system here.
The Center for Economic and Policy Research (VEPR) said the cooperation between local and foreign companies in IPs remains weak, adding that most of foreign businesses have to import machines and materials from their parent companies.
General Director of CB Richard Ellis Vietnam Marc Townsend earlier urged Vietnam to develop multi-service IPs which include trade centers, offices, apartments and hotels as well as other logistics services to attract more investors. (tuoitre.vn)
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