Completing Infrastructure for Industrial Development

The first change is the province's right industrial restructuring, aimed at reducing extractive industries and increasing processing industries. In 2012, processing industries accounted for more than 51 per cent of industrial output, more than 80 times higher than in 1991. The scales of manufacturing sectors have also expanded significantly. From only the oil and gas industry in 1991, the province has developed many important industries by 2012, including gas, electricity, fertiliser, steel, plastics, chemical, and cement. Industrial production value, including crude oil and natural gas, increased 12.78 per cent a year on average from 1991 to 2012 (posting a 27.41 per cent growth if oil and gas was excluded). In 2012, industrial output value reached VND65.6 trillion (VND50.3 trillion if oil and gas was excluded), an increase of more than 11 times (127 times if oil and gas was excluded) from 1991. Investment attraction increases in both quantity and scale of projects. To date, the industry contributes more than 65 per cent to the province’s GDP.

 

The formation of industrial zones with completed infrastructure has given a powerful boost to investment across the province. Since the first was established in 1996, Dong Xuyen Industrial Park, the province now has 14 industrial parks with a total area of 8,400 hectares. As many as 247 investment projects with total registered capital of US$11.88 billion are located in industrial parks, registering to rent 33.1 per cent of leasable area. The industrial zones have a positive impact on local economic restructuring, driven by industry and service. For over the past 20 years, industrial parks have been established and expanded. Many proper mechanisms and policies on attracting investors into industrial parks have been introduced.

 

Besides, small-scale industrial clusters have been invested and developed to pace up economic restructuring, especially in the countryside. The development of small-scale industrial clusters has turned barren land into useful production bases, created jobs for rural people, and developed local industry. Currently the province has 29 industrial clusters covering 1,523 ha of land, of which 25 clusters are invested by enterprises with a total capital of VND572 billion.

 

Key industries of Ba Ria - Vung Tau province include steel production (metallurgy), mechanical engineering, chemical, electricity, and processing of agricultural, forest and seafood products, construction material production, and support industries. These industries are rapidly changing thanks to the introduction of new technologies, playing dominant roles in local industrial production, and functioning as drivers of provincial industrialisation and modernisation. Especially, in the coming time, supporting industries will given high priority to push development.

 

To have the highest development efficiency of these key industries, the province established some specialised industrial parks and gave priority to high-technology projects, oil and gas industry, seaports, and supporting industries in a bid to draw big domestic and foreign investors. The province also focuses on supporting industries and industries at the service of agricultural and rural production. It selectively licenses projects in industrial zones, placing priority on those using advanced technologies which utilise less natural resources, energy, water, land, are friendly to environment, and meet sustainable development requirements. In addition, the province will focus on attracting industrial production projects with a ripple effect on the development of supporting industries and service businesses, aiming to make a strong shift in the development pattern from extensive development to intensive development.

 

As regards infrastructure development, by constructing relatively complete infrastructure systems in local industrial zones, we have created a new infrastructure system with a strong impact on the urbanisation process in the province and enhanced attraction of industrial investors.

 

In addition to its focus on infrastructure improvement, the province has investment support services for businesses. Currently, the province is building a mechanical engineering industrial zone in Phu My 2 Industrial Park for Japanese investors. This will be a complete industrial zone in terms of production site services, social services and utilities and other support services to meet the requirements of Japanese investors. B1-Tien Hung and B1-Dai Duong industrial zones are in the process of infrastructure construction and developers are meeting Japanese enterprises to ask for their favourite factory models to meet their demands. In the coming time, province will expand 1,000-ha Da Bac Industrial Complex to build factories and develop support services for Japan’s Kawasaki investors.

 

The province has also built traffic routes linking industrial zones, townships and localities. Ba Ria - Vung Tau is focusing its resources on building traffic arteries, including routes to Cai Mep - Thi Vai. This is a major industrial transport line that facilitates freight transportation from ports and industrial zones with Ho Chi Minh City and the Southwest region. Other important routes include National Road 51B, roads to Long Son Petroleum Industrial Park, and roads to Hoi Bai - Chau Pha - Da Bac - Phuoc Tan. At the same time, the province is planning investment for transportation systems in the upcoming years to ensure synchronous and sustainable development of transport networks to contribute more to the local industrial development.