Bac Ninh Industrial Zones Increasingly Attractive to Investors

10:01:29 PM | 4/9/2015

Although the global economy is still in difficulty, the attractiveness of Bac Ninh province-based industrial zones to investors has not diminished in the first months of 2015.
The Bac Ninh Industrial Zones Authority, which manages industrial zones in Bac Ninh province, granted 72 new investment certificates in the first six months of 2015, fulfilling 144 per cent of the full-year plan, including 16 investment certificates for domestic investors and 56 investment certificates for foreign investors, with a total registered capital of US$116.86 million. In addition, the authority granted 159 certificates allowing investors to change their investment scale, including 22 domestic projects and 137 FDI projects, with a combined registered capital of US$196.52 million. In combination, investors registered to invest US$313.38 million in the period, fulfilling 90 per cent of the plan set for 2015. Compared with a year earlier, projects rose 113 per cent and investment value climbed 84 per cent.
Industrial zones in Bac Ninh province have, to date, housed 863 investment projects, including 331 domestic projects and 532 FDI projects, with a total registered capital of US$8.97 billion, of which FDI projects accounted for over US$7.57 billion. This reaffirms the attractiveness of Bac Ninh province-based industrial parks to foreign investors.
Mr Ngo Sy Bich, Chairman of Bac Ninh Industrial Zones Authority, said the result comes from the province’s effective investment promotion works. This is a key measure for the province to draw strategic investment projects with very strong effects, such as Canon, Samsung Electronics and Microsoft. The province is supporting Samsung Display to expand its investment scale to US$4 billion from current US$1 billion. The project is expected to create major breakthroughs not only in investment attraction, but also in the province’s industrial development strategy from 2015 to 2020 and beyond.
The authority has promoted investment and introduced the image of the local investment environment via many different channels in Vietnam and foreign countries. The authority has also attended conferences and seminars on enforcement of the Law on Investment, contributed its opinions to draft decrees and circulars on management and operation of national information system for foreign investment, collaborated with such organisations as PWC and Deloitte to open seminars on tax policy for FDI firms, cooperated with the Department of Planning and Investment to update FDI data in the national foreign investment system, and worked with more than 40 investors across the country to seek investment opportunities in Bac Ninh industrial parks.
The authority has also joined hands with relevant agencies and branches to carry out planning. It reviewed Hong - Tan Hoan Son area and brought investment projects into Tien Son Industrial Park, and planned to merge expanded Que Vo Industrial Park with surrounding zones to form an ideal industrial destination for businesses. The authority also intended to adjust plans for Saigon Telecommunication & Technologies Corporation (SaigonTel) - Bac Ninh Branch, Kinh Bac City Development Holding Corporation (KBC), Viglacera Infrastructure Development Investment Company, and Tan Hong - Hoan Son Industrial Park Construction Investment Co., Ltd. It also monitored investors as they compensated land and cleared investment sites in such industrial zones as VSIP-Bac Ninh, Gia Binh, Yen Phong II, Dai Dong - Hoan Son, Thuan Thanh III, Que Vo III and Que Vo II. The authority also completed a scheme on “Sustainable FDI attraction in industrial parks” to submit to the Provincial People’s Committee for approval.
Bac Ninh province also sets great store in post-investment issues. The provincial government directed relevant agencies and localities to support licensed projects when they are under construction and going into operation. 47 new projects in industrial parks went into operation in the first six months of 2015, bringing the total number of active projects in industrial parks to 495. These projects generated industrial production value of VND235 trillion and earned export value of US$11.6 billion in the period, fulfilling 52 per cent of the full-year plan. They also spent US$9.4 billion on imports and paid VND2.9 trillion to the State Budget.