Bac Ninh Industrial Zones: Building Infrastructure, Improving Investment Quality

2:33:25 PM | 30/12/2014

Bac Ninh Province is implementing industrial zone (IZ) planning under the local socio-economic development master plan; planning IZ chains and urban zones along national roads. To learn more about the provincial IZ planning, Vietnam Business Forum has an interview with Mr Bui Hoang Mai, Deputy Director of Bac Ninh Industrial Zones Authority. Duy Binh reports.
How has Bac Ninh prepared for investment promotion into the IZs in the upcoming time?
Under the tough economic situation nationally and internationally, the investment attraction promotion into IZs in the province also encountered many difficulties due to investors reducing investment capacity and facing lack of capital. Even projects under implementation had many difficulties, so investors would not think of new investment projects in this period. Therefore, the Bac Ninh Industrial Zones Authority will coordinate with the provincial authorities to organise investment promotion groups in major cities. Building the image of IZs and providing necessary information to potential investors via provincial investment websites and related websites will be efficient, but at a low cost. The authority will create a ready land bank to serve investors at home and abroad with reasonable price, and promote the implementation of infrastructure investment of areas that have been planned. Investment methods of new IZs are not entirely based on market mechanisms, as there needs to be level controls in terms of rent. The province should invest more in infrastructure outside the new industrial zones to ensure the necessary connections for businesses when put into operation. Besides, the process of investment attraction must include screening under the requirements of environmental protection, and support for companies investing in waste treatment project infrastructure.
Since 2011, Bac Ninh Industrial Zones have attracted 331 projects with total registered capital of US$4,927.4 million, including 261 foreign-invested projects with registered capital of US$ 4,620.5 million, and 70 domestic investment projects with the of US$351.9 million. Specifically for the years as follows:
In 2011, the province attracted 68 projects with the total registered capital of US$668.61 million, including 24 domestic investment projects with the total registered capital of US$128.43 million and 44 foreign-invested projects with the total registered capital of US$540.18 million.
In 2012, the province attracted 57 projects with the total registered capital of US$1,193.37 million, including 16 domestic investment projects with the total registered capital of US$35.51million and 41 foreign-invested projects with the total registered capital of US$1,157.86 million.
In 2013, the province attracted 119 projects with the total registered capital of US$1,609 million, including 19 domestic investment projects with the total registered capital of US$44.63 million and 100 foreign-invested projects with the total registered capital of US$1,565 million.
In the first nine months of 2014, the province licensed 87 projects (11 domestic investment projects, 76 foreign-invested projects) with a total registered capital of US$1,501.49 million (US$143.31 million for domestic investment and US$1358.18 million for foreign investment).
Up to now, Bac Ninh has attracted investors from 28 countries worldwide investing in the province's industrial zones. Especially, large corporations in the world have also invested in Bac Ninh Industrial zones such as Canon, Samsung, Microsoft, ABB, Pepsi. It proves that Bac Ninh is an attractive destination to investors.
In the upcoming time, what would Bac Ninh do to raise foreign investment attraction?
In recent years, industrial zones in Bac Ninh have greatly contributed to the socio-economic development of the province, promoted growth and economic restructuring of the province towards industrialisation, modernisation, creating more jobs with higher incomes, and creating large export value. In the near future, Bac Ninh will synchronously perform the following solutions to improve investment attraction efficiency in the industrial zones:
First, build and improve policies and develop industrial areas: Build and implement good policies on planning and development of industrial zones. Develop synchronous and transparent investment policies, incentives for industrial zones.
Second, accelerate the construction of infrastructure in and outside industrial zones: Resolve compensation and site clearance difficulties. Mobilise funds to ensure the technical infrastructure construction investment. Strengthen state management in the construction of infrastructure and industrial zones.
Third, solve difficult problems faced by enterprises that are now in investment or production business phases.
Fourth, promote and improve the effectiveness of administrative reform and administrative procedures.
Fifth, coordinate with all levels, sectors and localities, management board of industrial zones and companies investing in infrastructure development, in the implementation of investment promotion.
Sixth, innovate content, diverse forms of investment promotion.
Seventh, identify key areas for the implementation of investment promotion.
Eighth, reorder IZs and investment projects to ensure the synchronous development of industrial zones.
Ninth, improve the quality of human resources.
Could you share the development direction of industrial zones in Bac Ninh until 2020 and subsequent years?
Regarding the development of the industrial zones: IZ development must comply with the approved plan, regularly review and adjust to ensure the development of some key sectors, fitting the actual conditions of the locality. IZ development must ensure socio-economic development goals in accordance with social and environmental factors. IP infrastructure must link synchronously to environmental protection, employees’ life improvement and social infrastructure development promotion.
In terms of the development of industrial zones, in the future, industrial zones need to be built and developed following some basic directions: raise the quality of planning and planning implementation; implementation of industrial zone planning in association with the implementation of the planning of socio-economic development, land use planning, industry development planning, urban planning and housing planning; build infrastructure synchronously; improve the quality of investment, tightly control environmental issues, and raise management capacity and employees’ quality.