Industrial Parks Becoming Industrial Locomotives of Central Binh Thuan Province

The province of Binh Thuan currently has eight IPs, namely Phan Thiet 1, Phan Thiet 2, Ham Kiem 1, Ham Kiem 2, Tan Duc, Son My 1, Son My 2 and Tuy Phong, with a total area of 4,293 hectares. To date, only Phan Thiet Industrial Park, measured 68 hectares, has been officially put into operation. Phan Thiet Industrial Park 2, covering 40.7 hectares, has completed clearance compensations and is building basic infrastructure. The park has attracted one project with investment capital of VND10 billion. Particularly, Ham Kiem Industrial Park 1 signed an agreement to house a project with investment amounting to VND293 billion. Thus, in the near future, industrial zones promise to become fertile lands for investors to achieve prosperity and development when they become operational. To date, industrial parks in Binh Thuan province house 28 projects with combined investment capital of VND675.4 billion (US$36.5 million) and US$25.5 million, of which five projects are foreign-invested.

 

A wide range of industries are being developed in industrial zones, including agricultural and forest products, consumer goods, apparel, footwear, household goods, electrical goods, metal wares, stationeries, toys, construction materials and furniture. Industrial park tenants contribute a significant part of provincial industrial production value as well as export turnover. FDI enterprises in industrial zones also play an important role in raising production capacity of key industries. As of late 2009, industrial park-based companies have created jobs for 3,200 workers, mostly in operational Phan Thiet Industrial Park.

 

Industrial production value reached only VND1,400 billion in 2009, down 8.5 % from 2008, while exports sank 3.8 % to US$28 million. Therefore, the provincial budget obtained only VND28 billion from industrial parks last year, down 26.3 % from 2008. 2009 was a difficult year for the industry. However, in the first quarter of 2010, there are signs that growth is returning and industrial zones are struggling toward new development. Currently, the investor selection criteria may become an impediment to capital flows into industrial zones in Binh Thuan province. But, according to Mr Chau Thuy Canh, Deputy Director of Binh Thuan Industrial Zones Authority, special local advantages in human resources, geographic location and infrastructure, plus quick legal procedures and high support and service for investors will create a strong magnet for FDI investors. Then, industrial parks in Binh Thuan province will take off to become locomotives pulling industrial and socioeconomic development in the province and southern key economic zone.

 

Also according to Mr Canh, industrial parks in Binh Thuan will double their efforts to realise targets set for 2010: Revenues reach VND1,800-2,000 billion, up 30-40 % compared with 2009 and exports value at US$38-40 million, up 35-42 %. In addition, budget revenues from industrial zones are expected to rise 17-23 % from 2009, reaching VND35-37 billion. To beat the targets, industrial parks in Binh Thuan will focus on attracting large-scale investment projects with low labour-intensity. They will give priority to projects having high technology content, using clean technologies and manufacturing high value-added products. At the same time, the province will continue developing infrastructure systems, improving the quality of services for investors in industrial parks, and accelerating clearance compensation and construction to attract investors.