Kien Giang’s IPs and EZs Boosting Investment Promotion

4:58:25 PM | 20/4/2014

Recently, due to the impact of economic downturn, the majority of investors facing difficulty in capital have decreased investment in industrial parks (IPs). However, with efforts to strengthen investment promotion and promulgate incentive policies, investment attraction to Kien Giang’s IPs and economic zones (EZs) has achieved some positive results. To learn about these efforts, Vietnam Business Forum interviewed Mr Dang Ngoc Tan, Director of the Management Board of Kien Giang’s EZs. Hoang Lam reports.

One of the most important highlights is that Kien Giang has already created a fairly synchronous IP system. Can you tell us about the practical results of the process of building the local IPs as well as the process of attracting investment to the IPs?

Kien Giang has 5 IPs included in the list of IPs that were approved by the Government for the establishment by 2015 and towards 2020 with a total area of 759ha, including:

Thanh Loc IP, covering an area of 205.06 hectares, is being built in 2 stages (stage 1: 150 ha and stage 2: 100 ha). There are currently 4 investors operating in the IP including: Vietnam Rubber Group with MDF Wood Processing Project; Thai Binh Investment JSC with Footwear Production Project; Vinatex Investment Development Corporation with Clothing Project and Saigon Beer - Alcohol - Beverage JSC with Sai Gon brewing Project. In addition, there are 5 investors to learn and register investment there.

Thuan Yen IP, covering an area of 140.737 ha, has made compensation payments, clearance and infrastructure investment with the total capital of VND 15.475 billion. Currently, there are two registered projects registered to do business in the IP with a registered capital of VND 1,941 billion.

For the 3 remaining IPs ( Xeo Ro, Tac Cau and Kien Luong 2 ), the EZ Management Board is implemented investment preparation to call domestic and foreign investors to invest in the IPs’ infrastructure. In which, Xeo Ro IP complex was approved by Kien Giang Province People's Committee a detailed planning 1:2,000 and Tac Cau IP is being submitted to the PPC adjustment of the detailed planning of 1:2000.

In recent years, under the attention of the Provincial Party Committee, People's Committee, the attraction of investment in Kien Giang province in general and the attraction of investment into the IPs and EZs over the years has achieved a certain number of results. So far Kien Giang has attracted 13 investment projects in the IPs, functional areas in border gate EZ; in which, it has issued 10 certificates of investment, the remaining projects are in the process of implementing the investment procedures.

To attract businesses to pour capital to the IPs in the province, what are Kien Giang’s solutions, and its strategic directions?

The province focuses on building infrastructure in IPs ad Ha Tien border gate EZ and simultaneously focuses on incentives for investment mechanism. Currently, the province has issued preferential policies for investment in Thanh Loc IP. We will advise the Provincial People's Committee to issue incentive policy to support investment in the remaining IPs and Ha Tien border gate EZ.

The Management Board also promotes promotion, calling for investment in IPs through proactive searching and calling for domestic and foreign partners to invest in infrastructure and production IPs; enhances image of Kien Giang in general and IPs in the province in particular to investors. The Management Board also focuses on reforming administrative procedures and ensures that investors’ profiles will be addresses quickly, accurately and efficiently in accordance with regulations.

Do you have any proposals to the Government and the central ministries to promote the activities of the IPs in Kien Giang province in particular and the Mekong Delta region in general?

I recommend the Government and the central ministries issue specific mechanism and incentives for the provinces in the Mekong Delta; raise the funding from the central budget for the IPs located in areas facing socio-economic difficulties. The Government should consider adjust and issue mechanism and clearance compensation land price framework for investors investing in IPs and EZs infrastructure to ensure the price not too high and ensure the attractiveness of investment in IPs and EZs, and improve competitiveness, facilitating setting attractive prices for land lease for investors, especially foreign investors.

In addition, the Government should ask the National Assembly to quickly set up IP and EZ Law to devolve to the management board to fully implement the state management function for IPs and EZs under OSS and removing the current authorization mechanisms. At the same time, the Government should promote decentralization, empowering EZ management board in the fields of environmental management (assign to the Management Board authority to implement state management on environment in IPs and EZs, replacing the role of the Department of Natural Resources and Environment) and inspection (assign to the Management Board authority to inspect and address problems in IPs and EZs).