In 2012, despite economic difficulties, the results of operations in the Industrial Zone in Ba Ria - Vung Tau province are still very positive. Concerning the prospects for attracting investment in the industrial zones in the future, in an interview with Vietnam Business Forum, Deputy Head of the Management Board of Industrial Zones Nguyen Minh Triet was quite optimistic: "Leaders of Ba Ria-Vung Tau are interested in directing departments and agencies to seek to attract an investment wave from Japan. I believe that the development of investment activity and production business in the industrial zones in the province will meet the criteria." Minh Hieu reports.
In 2012, the economic situation in the country faces difficulty. In this context, what are the results of operations, production, business, and investment in the industrial zones in Ba Ria - Vung Tau? And what are the prospects of investment, production, and sales in the industrial zones in the province in the near future?
In 2012, the value of industrial production in the province’s industrial zones reached VND 51,200 billion, up 10 percent compared to the same period in 2011. Revenue reached US$ 5512 million, of which FDI enterprises reached US$ 2967 million. Export turnover was US$ 1003 million, up 18 percent over the same period.
Performed investment capital of the IP projects was estimated at US$ 530 million, accounting for 70.67 percent of the targeted plan. In which, FDI businesses made up to US$ 483 million. Accumulated from the start of the reporting period: performed investment capital was US$ 6873 million, accounting for 60 percent of the total registered investment capital (US$ 11,446 million).
The results of investment in the industrial zones are also quite satisfactory. Registered capital accounted for 101 percent of this year's plan (US$ 452 million/US$ 450 million); number of projects accounted for 175 percent of the plan (21/12 projects), including 15 foreign investment projects with a total registered capital of US$ 411 million. These projects are consistent with the IP features with high investment rates, using advanced technology, not likely to cause environmental pollution and using less labour.
Currently, at the end of the year there are a small number of projects that did not make the contract, thereby they have to temporarily cease operation, such as Baw Heng and Minh Phong. Besides, bank interest rates remain high, so businesses cannot access bank capital. In my opinion, this is a difficult problem, so the state needs to take urgent measures to rescue small and medium enterprises. However, as I have analysed above, the majority of investment projects in industrial zones are large projects with foreign capital, so I hope that next year and for the next few years, investment activities and production business in the industrial zones in the province will remain stable.
Ba Ria - Vung Tau has the advantage of synchronously invested IPs and abundant labour resources. However, the skilled and highly skilled labour force is very limited. Surely is this a "knot" that the province is actively removing?
Ba Ria - Vung Tau is a locality with an abundant labour force, but the number of local workers only account for 38 percent of the 38,600 workers in the industrial zones in the province, mostly technical workers and unskilled workers. Workers with high technical expertise account for a very small percent. Up to the present time, the province has 31 training facilities. However, the quality of labour has not met the job requirements particularly for workers with high technical level. Labour management in IPs shows that more businesses in IPs are facing difficulty in recruiting workers, especially in the fields requiring techniques such as oil and gas, steel, and electricity.
Ba Ria - Vung Tau province is implementing the goal of building a modern seaport and industry by 2015. According to the Department of Planning and Investment, the period from 2011 to 2015, the industrial sector, with the development of 14 industrial zones, will need approximately 38,000 employees. Lack of skilled and highly skilled human resources is one of the major obstacles to the process of industrialization and modernization. So, to have a qualified labour force that meets the requirements of mastering the technology and management of the social and economic activities in this phase, we need to have high-quality labour-intensive training strategy, especially in key economic sectors such as heavy industry and ports, and build relationships and links between institutions and between institutions and businesses to train appropriate professions and meet the labour needs of the business. Simultaneously, we should construct and implement human resource development strategy, especially high-level vocational training to provide labour for key industries in the province and replace the foreign labour force and professionals in the IPs.
In the process to reach the final investment decision, what the investors fear most is the process to acquire "clean land". So how do the industrial zones in the province actively create the "clean land" fund in order to attract investment?
The fund for clean land in the province’s industrial zones is always ready to welcome investors. In addition, the provincial People's Committee is guiding the departments and agencies to implement Directive 07/CT-TTg on March 2nd 2012 of the Prime Minister on the review of delayed project implementation in order to propose revocation to create added clean land for investment.
Although in the recent time, the effectiveness of attracting investment in industrial zones in this area has been excellent, the quality of some investment projects are less effective, and in the long run their contribution to the economy is not high. In order to remove this limitation, what measures will the province apply?
Currently, in the Industrial Zones in Ba Ria - Vung Tau, the number of poor investment projects accounts for a very small percent. With slow implemented or non-implemented projects, the Management Board will recover certificates as prescribed. Particularly, the case of FDI enterprises which continuously report losses but increase production in order to avoid tax obligation is an unusual sign. To remove this limitation, the Board will actively advise and recommend to the People's Committee that the Government should amend and supplement the Law on Investment to specify the revision of investment certificates for FDI enterprises which report losses for more than 3 years, as foreign investment law previously defined.
Although the results of investment in the province’s industrial zones recently have shown good signs, we cannot stop with that. So, in the coming time, what is the Management Board’s policy to continue to improve investment efficiency?
According to the approved plan, the province has nine industrial parks, but due to development requirements, the number has grown by 5 IPs bringing the total number of IPs at present to 14. FDI attraction orientation in the future is to focus on filling established industrial zones and following the 5th provincial Party Congress Resolution on overall objectives to build and develop Ba Ria - Vung Tau into a modern industrial province and modern seaport by 2015, and develop the industry sector with environmental protection toward a “green, clean and beautiful” producing industry.
In addition, the Board will advise the Provincial People's Committee to direct the departments concerned to reform administrative procedures and create the best investment environment to attract investors to invest in the province.
Thank you very much!
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