The Vietnam Business Forum Magazine had an interview with Ms Nguyen Thi Thu Hang - Vice Chairwoman of the People's Committee of Khanh Hoa Province and Head of the Industrial Zone Authority.
Aside from tourism and fisheries, Khanh Hoa is developing other industries by setting up industrial zones and by offering investment and production incentives to all economic sectors. Can you tell me about some of the achievements made in developing industrial zones?
Under the industrial zone development plan to 2010, the province will have five large-scale industrial zones namely Suoi Dau,
Suoi Dau Industrial Zone, which was invested and constructed by the Khanh Hoa Trade & Investment Company and began operation in 1999, has so far completed the first construction stage, occupying over 78 ha worth VND99 billion (US$6.3 million) and has an occupancy rate of 76.5 per cent. The company is completing designs and cost calculations to kick off the second construction phase with an area of 39.3 ha. Up to now, 23 investment projects including 13 foreign-invested ones with a combined capital of US$43,400 and VND120.66 billion (US$7.7 million) have been licensed in the Suoi Dau Industrial Zone. Eighteen projects have become operational and employed 7,000 workers.
The 206 ha Ninh Thuy Industrial Zone, invested by the Hoa Cau Nha Trang Co. Ltd., is ready for construction. The Nam Cam Ranh Industrial Zone covering 200 ha is invested by the Dong Hai Real Estate & Tourism Service Joint Stock Company. The Industrial Zone Authority is completing detailed planning and is calling for investors for the 150-ha Van Ninh Zone. The 39-ha Dien Phu small and medium-sized Industrial Zone, invested by the Department of Industry, will be put into operation in 2005. The Khanh Hoa Industrial Zone Authority is completing investment procedures for construction of the 36 ha Dac Loc Small and Medium Industrial Zone in 2005. The Department of Fisheries has completed legal procedures and is making site clearance compensation to construct the 30-ha Bac Hon Ong Small and Medium Industrial Zone.
Are these achievements congruous with the potential and requirements of the province and if so, why?
The above-mentioned results represent the efforts of the province to develop industrial zones. However, in my opinion, they do not correspond with our potentials and development requirements. One of the major reasons is the province’s distance from
What will the province do to assist and facilitate investors to invest in infrastructure of industrial zones as well as enterprises, who have obtained investment licences and are carrying out construction of their factories?
Khanh Hoa province is working to provide all necessary assistance to investors. As for infrastructure investors, the province offers exemptions for crude land rentals during project implementation and aids site clearance. All corporate income tax paid in consecutive nine years will be redeemed. For firms in industrial zones, the province will return all corporate income tax paid in 6-8 years and used for reinvestment, and offer assistance to change their production locations and provide funds for worker training programmes.
To improve investment attraction, which investment promotion programmes will the province carry out in the coming time?
In the coming time, Khanh Hoa province will accelerate investment promotion activities via conferences and direct contact with domestic and foreign economic organisations to disseminate investment policies and incentives in the province. The province plans to hold two conferences in
Vietnamese
