Industrial Parks: Best Conditions Prepared for Investors

3:24:12 PM | 3/9/2023

Ha Nam province is working hard to remove bottlenecks in connective infrastructure, site clearance and administrative procedure reform in order to prepare favorable conditions to speed up investment promotion and attraction, especially for large projects in industrial parks, said Mr. Tran Van Kien, Director of Ha Nam Industrial Zones Authority.

Could you please briefly introduce the current development of industrial zones in Ha Nam province? What are remarkable “bright spots” and “weak points” of industrial park development?

According to the project on revised development planning of Ha Nam industrial zones to 2020 approved by the Prime Minister (Document 469/TTg-CN dated April 3, 2017), the total planned area of its industrial zones is 2,534ha.

At present, Ha Nam has eight industrial parks approved by the Prime Minister (Dong Van I, Dong Van II, Dong Van III, Thai Ha - Phase I, Dong Van IV, Chau Son, Hoa Mac and Thanh Liem) with a total area of 2,193 ha, including of 1,560.3ha of rentable industrial land. These IPs have all been built basically and synchronously to meet the needs of investors with the leased area of 1,258.4 ha, reaching the rate of 80.6%. As of December 2022, the industrial parks housed 527 valid investment projects, including 315 FDI projects with US$4,845 million of total registered capital and 212 domestic projects with VND41,605 billion.

In recent years, tenants have worked stably and developed strongly, thus actively contributing to local economic restructuring as well as budget growth.

The industrial production value has increased rapidly at a double-digit pace: 52.6% annually in 2006 - 2010; 27.6% in 2011 - 2015; 31.8% in 2016 - 2020; 16.8% in 2021; and 14.2% in 2022. This helped raise the share of industrial production value over years (to over 82% now).

Regarding budget payment, tenants in industrial parks have helped increase local budget revenue at a double-digit pace: VND729.6 billion in 2006 - 2010; VND4,229.8 billion in 2011 - 2015; VND15,217.0 billion in 2016 - 2020; VND 5,970 billion in 2021 and VND5,600 billion in 2022.

Their export value also advanced: US$286.9 million in 2006 - 2010; US$2,473 million in 2011 - 2015; US$9,905 million 2016 - 2020; US$3,654 million in 2021; and US$4,884 million in 2022.

However, industrial parks have also revealed some shortcomings. For example, some projects had slow investment progress and ineffective land use. Some did not fulfil their investment commitments, especially regarding budget payment. Some had to downsize, even halt, their operations.

Ha Nam will become a high-tech industrial center, which is an important approach in the Draft Ha Nam Planning for the 2021 - 2030 period, with a vision to 2050. Would you mind sharing this vision with us? How has the Ha Nam Industrial Zones Authority advised relevant bodies to materialize this approach?

According to the draft Ha Nam planning for the 2021 - 2030 period, with a vision to 2050, the development goals are as follows:

By 2025, build Ha Nam a prosperous, beautiful and civilized province, achieve a good development level in the northern delta region; become a centrally governed city before 2035.

By 2050, become a smart city, a modern development city, a center of high-tech industry and high-quality services, and a major shopping center of the Red River Delta and the whole country.

To realize these goals, the Ha Nam Industrial Zones Authority has carried out the following tasks:

Advise the Provincial People's Committee to build an industrial park network development plan for the 2021 - 2025 period, with an eye to 2030 to submit to the Prime Minister for approval and integration into the provincial planning.

Advise the Provincial People's Committee to build investment promotion programs to attract capable and experienced investors to construct and operate industrial park infrastructure and call for tenants, large-scale investment projects with modern, environmentally friendly technology and high added value into local industrial parks.

How do you assess the remarkable performance of the Ha Nam Industrial Zones Authority in the past two decades of operation (since October 2002)?

Industrial zones of Ha Nam province have been continuously expanded by area and attracted more tenants which have been working more effectively. The state administration of investment, environment, construction planning, business development and employment has been increasingly improved.

Industrial zone infrastructure has been gradually expanded and completed to meet investors’ needs and to draw high-quality investment projects.

Investment promotion, especially in attracting foreign direct investment (FDI) companies, has been worked well. Projects attracted into industrial parks have been attracted in line the province’s investment policy.

Companies increasingly respect the law, especially regulations on environment and labor. To date, all industrial zones are effectively operating centralized wastewater treatment facilities to ensure water quality before being discharged into the environment.

All business targets are met every year. Business performance of tenants has been increasingly enhanced, expressed by economic indicators such as industrial production value, export value, employment and especially budget contribution.

The growth rate and share of industrial production value, budget contribution and export value in industrial zones has been increased in the province’s economic structure.

To boost investment attraction in industrial zones in the new context, Ha Nam province and the Ha Nam Industrial Zones Authority are speeding up investment promotion and attraction with more practical and specific activities. So, what are new major contents?

Building and regularly updating investment-related documents; further introducing and promoting the image and investment environment of Ha Nam province-based industrial zones through many advertising channels in key markets like Japan, South Korea, the United States, Taiwan and Europe; diversifying forms of advertising and promotion; actively participating in domestic and foreign investment promotion activities; taking advantage of cooperation and assistance of foreign economic, commercial and diplomatic organizations in Vietnam and Vietnamese agencies abroad, especially those from Japan, South Korea, the United States, Europe and Taiwan, as well as successful investors in the province.

Coordinating, participating, and accompanying industrial park infrastructure investors and operators to complete relevant legal procedures regarding investment in industrial park construction and create a clean land fund for secondary investors.

Attracting and mobilizing various investment resources to build social infrastructure for workers, improve service quality for foreign experts.

Coordinating and urging relevant agencies to speed up synchronous construction and stable provision of supporting services for industrial development such as electricity, water, telecommunications and labor recruitment services, consulting and disseminating policies and laws for workers.

Coordinating with professional human resource suppliers to recruit workers, especially high-quality human resources for businesses.

Effectively fulfilling the province's commitments to domestic and foreign investors in the spirit of innovation and creativity, especially in reforming administrative procedures, improving the quality of human resources and infrastructure, ensuring a favorable, attractive and sustainable investment environment.

Thank you very much!

By Ngo Khuyen, Vietnam Business Forum