Industrial Parks in Nam Dinh: Finding Opportunities in Challenges

In recent years, Nam Dinh province has striven to attract investment capital into the industrial sector but results are still shy of the local potential and expectations. To have a more comprehensive view on the matter, Vietnam Business Forum has an interview with Mr Nguyen Xuan Tuyen, Director of the Nam Dinh Industrial Zones Authority.

Promoting industrial development is a great desire of an agriculture-based province like Nam Dinh. Actions and resolutions of provincial authorities have reflected that determination. In late 2001, the first Hoa Xa Industrial Park went into operation - a move considered opening a new chapter for the province. Many projects registered to locate their factories in the industrial zone. By 2004, Nam Dinh attracted 61 projects with total registered capital of nearly VND1,800 billion (US$100 million) and US$54 million. With this feat, Nam Dinh asked the central government to build 11 industrial parks with a total area of nearly 2,000 ha (seven industrial parks already have infrastructure developers) and was given a nod. Following Hoa Xa is My Trung, Vu Ban, Y Yen, Thinh Long and others.

 

In recent years, the global economic crisis dragged down on investment attraction in the province. But, with active and positive efforts, Nam Dinh still made encouraging results. In 2009, the province granted investment certificates for nine projects, including one foreign-invested project, with a total registered capital of VND792.4 billion and US$460,000. By the end of 2009, Nam Dinh licensed 113 companies to invest VND11,127 billion and US$142.9 million in 138 projects. Remarkably, Hoa Xa Industrial Park housed 120 projects with a total registered capital of VND4,260.7 billion and US$131.6 million. My Trung Industrial Park has attracted nine projects worth VND1,328.9 billion and US$11.3 million, which registered to lease 30 percent of rentable areas.

 

Since its inception, the Nam Dinh Industrial Zones Authority has actively proposed the provincial People's Committee to build industrial park development plan for the period to 2015, and vision to 2020. The central government has approved of 11 industrial zones. Besides, the authority also launched investment promotion activities. Particularly, in 2009, the authority worked with over 50 Vietnamese and international investors and held a joint investment promotion conference with Thai Binh province which drew the attendance of more than 400 enterprises. In addition, it has also sent its staffs and experts to investment promotion cooperation conferences held by the Ministry of Planning and Investment, embassies, international organisations and institutions in Vietnam. The central government, the Ministry of Planning and Investment and provincial authorities have frequently presented certificates of merits to the authority and its staffs in recognition of their efforts and contributions. Specially, in 2008, the Nam Dinh Industrial Zones Authority was honourably awarded the third-class Labour Medal.

In my opinion, the site clearance is the thorniest problem in Nam Dinh province because of limited awareness of local people. For instance, in 2009, the province organised more than 50 meetings with local people but it could not solve site clearance problems for Bao Minh Industrial Park although investors already completed land compensations.

Last but not least, local officials remain very bureaucratic and they distress not a few investors.