Industrial Zones: Focusing on Improving Infrastructure and Attracting Investment

In recent years, industrial zones in Vinh Long province have continually made breakthroughs, contributing to economic restructuring in accordance with the master plan of socio-economic development of the province. The value of the industrial production of the industrial zones contribute over 40 percent of the total industrial output value of the province and create nearly 15,000 jobs. The activities of the industrial zones have spillovers to the local neighborhood, improving living standards and incomes of the local residents. Regarding this topic, Vietnam Business Forum interviewed Mr Nguyen Van Hieu, Head of the Management Board of Industrial Zones of the Vinh Long province.

So far, Vinh Long has built two industrial parks: Hoa Phu Industrial Zone at the first phase and second phase and Binh Minh Industrial Park, with a total area of ​​383.57 hectares and Co Chien Industrial Park with total areas of ​​30 hectares.

 

Although only developed at the first phase, the industrial zones including Hoa Phu IZ at the first phase, Binh Minh Industrial Park, Co Chien Industrial Park (Zone 4) have made significant contribution to the growth and economic development of the province. In 2012, total revenue of the industrial zones reached more than VND8,000 billion (of which there was US$202.6 million), up 27.03 percent over 2011. The value of the industrial zones reached VND3,240 billion, accounting for 43.7 percent of the total industrial output value of the province. The total export revenue reached US$161.9 million, accounting for over 40 percent of the total exports of the province.

 

The province continues attracting investment in the industrial zone and achieving good outcomes. In 2005, there were five businesses investing in industrial zones with total investment of VND118 billion and US$10 million; until now, there are 234 businesses, signing a memorandum of 40 projects of which 31 projects have been granted for investment certificates with a total registered investment capital of VND 3126.1 billion and US$121.1 million.

 

In addition to investment incentives as prescribed, Vinh Long also implemented the Decision No. 05/2008/QD-UBND, dated January 31 2008, of Vinh Long province in the provision of regulations of the preferential policies and investment incentives of the province, such as supports for an foundation of technical infrastructure inside and outside industrial zones, incentives for housing projects for workers, support for recovery and compensation for house clearance, supports for advertising expenses, funding for investment promotion, and supports for human resources.

 

Regarding the communication network, Vinh Long is located in the heart of the Mekong Delta so the province gains advantages over road transportation. The province is the exchange point of goods with other provinces and countries in the Mekong Delta. Indeed, it is located between two big economic centers of the Southern region and about 30km from Tra Noc International Airport and 35km from Cai Cui port, Can Tho. Once the My Thuan bridge of Can Tho is constructed and put to use and the highway between Ho Chi Minh City and Can Tho will be constructed in near future, Vinh Long will play very important roles to promote the economy of the Mekong Delta and the whole country and create breakthroughs in investment, production and business activities for domestic and foreign businesses.

 

Also, Vinh Long is located at the intersection of the two axes of urban economic corridors: the Tien River and the Hau River (the eastern economic corridor and the western economic corridor), at Highway 91 on the South of the Hau River, at the border of An Giang and Dong Thap on the West side, and at the urban areas and coastal port and Soc Tran port (Tran De port) on the East side. The province, thereby, is at the center of the ASEAN countries and other countries and at the axis of the urban economic corridor of the Highway 1A- Ho Chi Minh City Route from North to South.

 

With this geographical advantage, along with policy incentives and investment incentives of the province, dynamic leadership of the province, efforts of the departments and agencies to implement administrative reforms as well as create clean properties and competitive leasing rates, Vinh Long is confident in creating good business environments for investors.  

 

Currently, the local industrial parks are encouraging investment in some industries such as:: agricultural and fisheries industries, food processing for export, textile and garment, furniture, consumption goods, high tech pharmaceutical chemicals, Consumption Goods and Appliances, Electricity and Electronics, Crafts and other less pollution industries.

 

Under the guidelines and commitment for a sustainable development, the province always takes high priority over the environmental protection in the industrial parks. The Hoa Phu Industrial Zone now completed the infrastructure at the first phase, particularly building a wastewater treatment plant with capacity of 4.000 cubic meters per day which provides enough capacity for the Hoa Phu Industrial Zone at the second phase; The Binh Minh Industrial Park at the first phase basically completed the wastewater treatment plant with a capacity of 2,200 cubic meters per day and promptly put to use as the secondary businesses go into production.

 

The secondary investors in the industrial zones all have built a standard wastewater treatment system under an agreement with each construction and infrastructure company of each industrial zone. The emission processing works has been verified for their standards and quality. Besides, every business has a contract with the functional bodies to collect, transport, and process the solid waste.

 

The province pays high attentions to the implementation of environmental protection, with a focus on advocacy and education to raise awareness of environmental protection and accountability while strengthening the government's management of environmental protection.

 

Prime Minister has issued a document No. 1453/TTg-KTN, dated August 16 2010, to approve that Vinh Long could have three additional industrial parks on the list of industrial parks, which will be established from 2015 to 2020, including Tan Binh Industrial Park with total area of 400 hectares, Dong Binh Industrial Park with total area of 350 hectares and An Dinh Industrial Park with total area of 200 hectares. Currently, the Management Board of Vinh Long Industrial Parks, together with other related departments, are drafting a master plan submitted to the provincial People's Committee for implementation. In addition, the province continues to invest in building a complete infrastructure to attract investment to fill up the industrial area of Hoa Phu Industrial Zone at the second phase, Binh Minh Industrial Park and Co Chien Industrial Park to create a significant change in economic growth and restructuring.

 

To promote the activities of the industrial parks in Vinh Long in particular and in the whole country in general for their fast and sound development, the province proposed a set of uniform and stable incentives for investment in the industrial parks with a focus on land policy and corporate income tax balancing with those of other countries, especially in the Southeast Asia. At the same time, the province also pays attention to policies to encourage the development of supporting industries and help to complete the construction of infrastructure outside the industrial parks.