Industrial zones in Phu Yen province, especially Nam Phu Yen Economic Zone, are playing a more and more crucial role during the integration process of the province. In the recent past, the growth of the local industrial and economic zones has greatly contributed to the industrialisation and modernisation of the local economy and helped boost the industrial capacity of the province.
Phu Yen currently has one economic zone and three industrial zones with almost complete facilities, ready for investors. Nam Phu Yen Economic Zone is among the 15 economic zones in coastal areas. Located in Dong Hoa District of Tuy Hoa City, Nam Phu Yen Economic Zone is a collective economic zone, boasting modern urban infrastructure with an area spanning 20,730 ha and various functional zones such as non-taxation and taxation zones. The Economic Zone has within it many different industries producing core products with high level of quality and competitiveness, namely industry, tourism and agriculture, providing a strong foundation for sustainable development.
Hoa Hiep Industrial Zone is among the industrial zones whose establishment was approved by the Prime Minister in August 1998. The first phase of construction attracted 23 projects with total registered land area of 53.91 ha and invested capital of VND1,173 billion and US$17.095 million. The second phase of construction, located in Hoa Hiep Trung and Hoa Hiep Nam village (Dong Hoa) so far has attracted one investment project with total registered capital of US$13 million. An Phu Industrial Zone alone attracted 30 investment projects with total registered land area of 31.11 ha and total invested capital of VND288 billion and US$1.86 million. Dong Bac Song Cau Industrial Zone has 21 projects with total registered land area of 73.6 ha and total invested capital of VND579 billion and US$1.111 million.
In 2011 and during the first six months of 2012, the Management Board of the Economic Zone has accepted six investment project application portfolios and granted Investment License for projects at Hoa Hiep and An Phu Industrial Zone. An Phu Industrial Zone granted investment licenses for four projects with a land area of more than 53,824 sq. m and Hoa Hiep Industrial Zone granted investment licenses for two projects with a land area of more than 113,649 sq. m. As of now, there are 77 registered projects in the province with a total registered land area of more than 2,617.6 ha and invested capital north of VND12,041 billion and $US1,733 million respectively. In general, the current infrastructure at these industrial and economic zones satisfies investor demand. There are currently 61 projects operational with the 2011 accumulated revenue of VND3,250 billion; export turn-over of $US123 million; contribution to Government’s budget in the amount of VND47.5 billion. In the first six months of 2012 alone, accumulated revenue at these industrial zones were more than VND1,411 billion; export turn-over of US$ 47.13 million; contribution to Government’s budget in the amount of VND15 billion.
Mr Truong Phuoc Cuong, Director of the Management Board of Phu Yen Economic Zone commented, “In the next few years, given a lacklustre global economic climate, investment attraction and business operation at Nam Phu Yen Economic Zone and local industrial zones will continue to face numerous challenges. Nevertheless, based on the 2011 and the first six months of 2012 statistics, business operation within the industrial zones is expected to remain relatively stable and even slightly improve. Investment in the infrastructure at the oil refinery in Hoa Tam Industrial Zone as well as the establishment of Hoa Xuan multi-industry industrial zone will help attract additional new projects.
Also according to Mr Cuong, the result from recent investment attracting activities in Nam Phu Yen Economic Zone and local industrial zones is encouraging. However, most of the projects are small-scale; there is not yet a project which has the potential to generate momentum for the socioeconomic development of the province. Business activities within the industrial zones are separated, utilising outdated technology, leading to a low level of competitiveness and little contribution to the socioeconomic development of the province.
In order to resolve these limitations to attract more infrastructure development projects, projects that can create momentum on the socio-economic development, the Management Board will focus on improving the efficiency of attracting investments into the Nam Phu Yen Economic Zone and industrial zones, both in terms of quantity and quality. The Board will also encourage and promote activities to attract more investment; actively cooperate with provinces, responsible governmental agencies, trade commissioners, foreign investment and commerce consulting agencies to hold events to promote commercial activities in the local economic and industrial zones. The Management Board will try its best to maintain and improve the formalities and reform procedures, creating the more conducive environment for investors.
Thanh Tam
Vietnamese
