Accompanying Businesses

Recently, industrial parks in Bac Ninh province achieved important results that contributed to industry- and service-driven economic restructuring and to the economic growth of the province.

 

The province took the right step in master industrial zone planning. After 10 years of construction and development, Bac Ninh province now has 15 industrial parks with a total area of 6,847 ha. Industrial parks combine all favourable elements to attract large investment projects. They are investment destinations for many world-leading companies like Canon, Samsung and Nokia. Thus far, 58.16 percent of planned areas have been leased and 75.38 percent of reclaimed areas are rented.

 

Investment attraction results are outstanding. So far, the province-based industrial parks licensed 546 effective investment projects with a total registered capital of US$4.25 billion and rented area of 1,152 ha. On average, each project has investment capital of US$7.73 million and each hectare of rented land houses US$3.56 million. In 2011 alone, the province granted investment licences to 68 new projects, of which 44 were foreign-led and 24 were locally invested. Top-rated projects include Nokia, Ojitex, VinaSoy and Asia Packing.

 

Increasingly improved corporate governance steps up the efficiency of production and business activities, contributing to provincial socioeconomic development.

 

To date, 271 projects in industrial parks have been put into operation, including 33 projects in 2011. Their industrial production value reached VND142,704 billion; their export value was US$6,512 million; and their tax payments amounted VND2,653 billion. Companies in industrial parks hired 87,053 people.

 

Bac Ninh has a convenient geographical location and traffic system - vital elements for investment attraction. Besides, to attract more investors to Bac Ninh, the province has focused on planning synchronous technical and social infrastructures in industrial zones. We centrally exert a pull on top-rated multinational corporations to draw supporting production companies.

 

Bac Ninh and other provinces as well have introduced preferential investment policies. But, we have regulations to coordinate with competent authorities to support businesses in completing administrative procedures. If tenants in industrial parks are facing difficulties, the Bac Ninh Industrial Zones Authority - within its power - accompanies them to work with competent bodies to seek out solutions. Timely resolution of administrative procedures reduces time and costs for businesses. That builds investor confidence for their projects.

 

Businesses need a close companion when they locate their projects in industrial parks. Knowing this, we are always willing to support investors. Therefore, they trust and appreciate the role of Bac Ninh Industrial Zones Authority.

 

Site clearance and worker housing are pressing issues for investors and businesses in industrial zones.

 

The Government has provided a general land frame applied nationwide. Provinces use this frame to determine land prices at the start of each year. Indeed, land prices in Bac Ninh province increase annually. After evaluation is complete, competent authorities pay compensation for landlords and carry out site clearance. Land reclamation and compensation are usually carried out in May and June.

 

Knowing this rule, some people do not want to hand over their reclaimed land as they want the process to be done in the following year when the land price is valued higher. This is a shortcoming of annualised land valuation.

 

Basically, people know that the State builds industrial parks for the sake of people’s benefits. It is true that local residents have a better life after industrial parks are built in their localities. But, a small group of people deliberately distort information about land policies to spark off disputes. Hence, in the coming time, the Land Clearance Council needs to approach this group to persuade and educate.

 

Being aware of difficulties facing local people after giving up their land, the province facilitates them to work for factories inside industrial parks. In industrial zone planning, provincial authorities allocate land for service activities where local people are the nucleus.

 

To ease site clearance, I think information activities are a decisive factor. People need to comprehend that the presence of industrial parks will make their lives better.

 

As regards housing policy, whenever we plan an industrial zone, we always zone out service and housing areas for workers. At present, Bac Ninh has four industrial parks with worker residences, namely Tien Son, Yen Phong, Vo Que and Dai Dong - Hoan Son.

 

Nonetheless, rentals there are slightly higher than outside. Meanwhile, workers always want to hire houses as cheaply as possible. But, workers staying outside cannot have guaranteed livelihood, security and health as when they live inside industrial parks. Many do not understand this and they just want to save as much money as possible.

 

Economical livelihood is a reason for vacant residences inside industrial parks. For example, Tien Son Industrial Park has five-storey apartments with individual room areas of 40 - 50 square metres capable of accommodating eight people. Monthly rent is just over VND1 million. Another reason is our workers are unfamiliar with industrial working style. Anyway, most of them came from the countryside where working is arbitrary. They also hate strict regulations in residences inside industrial parks.

 

To alleviate burdens on workers, the province supports investors to build worker houses to make rents cheaper than outside hostelries. In addition, many companies want to construct houses for their employees. Many large-scale companies like Samsung and Canon asked for land to construct houses for their workers.