Long An Industrial Zones
Actively Welcoming New Investment After Integration

2:51:15 PM | 19/6/2008

In the context of the 1997 Asian financial crisis, Long An’s two first industrial zones, namely Duc Hoa No. 1 and Xuyen A, were established.
Forming and growing
In 2000, under the pressure of urban development and industrial expansion in Ho Chi Minh City, and the risk of labour shortage in industrial zones in Dong Nai and Binh Duong, the investment wave into industrial zone infrastructure glutted Long An, a new member of the Southern key economic region. This wave created 30 enterprises and 34 projects on infrastructure investment in 17 industrial zones, with total land area of 7,857 hectares.
As of the end of the first quarter this year, the Prime Minister has permitted Long An to build 17 industrial zones. The Prime Minister has also approved the national plan of industrial zone development with a total 7,257.73 hectares. Eight of these industrial zones have come into operation, including Duc Hoa No. 1, Xuyen A, Tan Duc, Thuan Dao, Long Hau, Nhut Chanh, Tan Kim and Cau Tram. Of which, Duc Hoa No. 1 and Thuan Dao have their land fully leased and are starting the expansive investment phase.
In the first quarter, 2008, management units of industrial zones have granted 16 investment certificates for eight foreign invested enterprises with total registered chartered capital of US$73 million and eight domestic enterprises with registered chartered capital of VND417.57 billion and leased land of 25.67 hectares.
54 companies have come into operation, of which 36 are foreign owned and 11 are domestic owned, mainly distributed in such industrial zones as Duc Hoa No. 1, Thuan Dao, Xuyen A, Tan Duc and Duc Hoa No. 3 – Thai Hoa. Total turnover of foreign invested companies is estimated at US$78 million in the first quarter 2008, a year-on-year increase of 56 per cent, of which export revenue is estimated to be US$38 million, up 26 per cent, and domestic consumption value is US$40 million, double the value of the same period last year. Tax and budget collection are approximately US$27 million, nearly triple the same period last year.
Difficulties and solutions
As a new member of the key economic region with a low starting point, Long An has reaped modest outcomes. The technical infrastructure for industrial production remains weak. Clean water supply for industrial production faces serious shortage and is a decisive factor in the future development of industrial zones.
Although investment demand is on the rise, there is not enough land for building infrastructure, as negotiating with households for ground clearance has been difficult. Furthermore, unsuccessful negotiations need to be restarted when the market price increases. Adoption of one-stop procedures, in contrast, proves useful for enterprises in industrial zones.
Confronting growth challenges, Long An will concentrate on maximising its comparative advantages, new investment surges after WTO admission and the expected economic movement of the Southern key economic region in the coming time. Long An will have to raise all investment sources for development, boosting administrative reform, enhancing education-training and science-technology, strengthening human resources, improving product quality, closely attaching economic efficacy with environmental protection, pushing investment promotion, strengthening cooperation with other localities, regions, domestic and overseas areas, being prepared to welcome and create favourable conditions for investors, and work with enterprises for provincial industrialisation and modernisation to improve growth and take the initiative in global economic integration.
Accordingly, Long An will pay special attention to infrastructure development, as weakness in infrastructure is hindering investment attraction and adding costs to enterprises’ production and business.
Hai Binh