Bac Kan Industrial Zones Authority: Efforts to Find New Investors

5:49:31 PM | 26/11/2013

Thanh Binh Industrial Park located in Cho Moi district was approved for formation in the Prime Minister's Official Document 125/TTg dated January 22, 2007 and was invested with centralised water treatment facilities, electricity systems, centralised sewage systems, internal roads, and communication systems. The advent and operation of industrial zones in Bac Kan province has generated new driving forces for local socio-economic development. To learn more about operations of industrial zones in Bac Kan and their investment attractions, Vietnam Business Forum interviewed Mr Tran Cong Hoa, Director of Bac Kan Industrial Zones Authority. Pham Trang reports.
Could you kindly introduce some outstanding investment attraction results and the operational status of Thanh Binh Industrial Park?
After receiving the Prime Minister's permission for establishment Thanh Binh Industrial Park, Bac Kan province approved the first-phase infrastructure investment covering on 73.5 ha. In 2012, basic technical infrastructure items of Thanh Binh Industrial Park were completed and a housing campus for workers was also built. Along with that, the Bac Kan Industrial Zones Authority also handed leased land to investors to build factories. All rentable area of the first phase has been leased out. The total registered investment in capital in Thanh Binh Industrial Park has to date exceeded VND3 trillion (US$150 million). One factory has gone into operation, one is being commissioned, and one is now underway.
Currently, the second-phase infrastructure construction project is carried out on the remaining area of 80 ha. To attract investors to engage in the second phase, the Bac Kan province Industrial Zones Authority will actively coordinate with provincial agencies to introduce its potential to domestic and foreign investors, actively participate in investment promotion conferences and programmes organised by central agencies, frequently coordinate with industrial zones authorities of other provinces and cities to seek investors, and continue to provide favourable conditions for enterprises in implement production and business investment procedures and incentives.
Amid economic volatility which has negatively impacted the production and business activities of enterprises, what measures has the Bac Kan Industrial Zones Authority taken to support and accompany businesses to get through this difficult period?
Amid economic slowdown, companies inside Bac Kan province-based industrial zones have faced numerous difficulties. To overcome this period, together with the efforts of enterprises, the Bac Kan Industrial Zones Authority and relevant provincial agencies, under the leadership of the Provincial People's Committee, have kept track of investment, production and business of enterprises, helped them quickly and promptly resolve all difficulties and problems, especially with business support and credit access procedures. In addition, the authority attaches particular importance to social security management and environmental protection to create favourable conditions for promoting sustainable industrial production in subsequent years.
Environmental pollution and disallowed foreigner employment are always a top concern of industrial parks. So, what measures has the Bac Kan Industrial Zones Authority taken to attract investment and promote business, but still perform good employment management and environmental protection?
As regards environmental protection, as soon as infrastructure construction was started, environmental protection in Thanh Binh Industrial Park has been given top priority. Specifically, the park has completed wastewater collection and treatment system, surface water collection and treatment system, trees and lawns. The authority regularly informs, examines, monitors and guides companies to adhere to environmental protection regulations. No environmental pollution has been found in industrial zones and the surrounding environments.
Regarding foreigner employment management, most foreign workers in Bac Kan are now Chinese. The management is strictly based on the Government’s regulations on foreign employment management in Vietnam. So far, no unlicensed foreign employment has been found in industrial parks in Bac Kan province.
In 2012, Bac Kan had a relatively low competitiveness index. What should the province do to improve the provincial competitiveness index (PCI) as well as create a more favourable environment for enterprises to invest and do business in the future?
Bac Kan province has an unfavourable geographic location, terrain and traffic system. However, Bac Kan also has a lot of advantages, especially forest resources such as timber, bamboo, minerals and agricultural products. Therefore, it is necessary to create more favourable conditions for businesses to invest in Bac Kan province. Specifically, in administrative reform and investment and business environment improvement, the province focuses on settling administrative procedures based on single-window mechanism to assist enterprises to deal with difficulties and obstacles, zone out material zones for enterprises to build processing factories, and help them recruit local labourers. Also, to draw businesses to invest in industrial parks, the government must offer more incentives for businesses inside industrial parks than those outside industrial parks.