Resources Prioritized for IP and EZ Infrastructure Development

Kon Tum province stands at the heart of the Cambodia - Laos - Vietnam Development Triangle (CLV). Mr. Vu Manh Hai, Deputy Director of the Kon Tum Economic Zone Authority, said, “Given limited State funds, the province advocates exchanging land for infrastructure investment, mobilizing social resources for infrastructure investment in local economic and industrial parks, and applying highest incentives for investors.” Cong Luan reports.

Could you give tell us about investment attraction in industrial parks and border gate economic zones in the province?

Although local socio-economic conditions are still difficult, to improve the outcome of investment attraction, Kon Tum province has sped up ground clearance to create available land fund and invest in infrastructure construction in economic and industrial parks, and invested in centralized wastewater treatment systems to ensure good conditions for production and business operations of enterprises. In addition, the province has focused on building a safe and friendly investment environment; and speeding up administrative reform to strengthen investor trust. Therefore, investment flows into local industrial parks and Bo Y International Border Gate Economic Zone have kept growing.

Since 2011, 62 projects with a total investment capital of VND4,077.021 billion were licensed to invest in Bo Y International Border Gate Economic Zone, Dak La Industrial Complex, and industrial parks. To date, 99 projects registered to invest in these industrial destinations, including 62 projects in Bo Y International Border Gate Economic Zone, 33 projects in Hoa Binh Industrial Park, one project in Dak To Industrial Park, and three projects in Dak La Industrial Complex. Some large-scale projects are studying and preparing investment registration procedures in Sao Mai Industrial Park and Hoa Binh Industrial Park (second phase). Every year, local enterprises create jobs for nearly 3,000 workers, who are paid VND6 million a month on average. Their manufacturing revenue exceeds VND1,300 billion and their tax value reaches VND78 billion annually.

Trading activity tends to develop rapidly at Bo Y International Border Gate. Over 160,000 people and more than 25,000 vehicles cross the border gate a year. The trade value is about US$200 million and tax revenue is about VND250 billion annually.

In general, thanks to fundraising policies and power decentralization from the Provincial Party Committee, the Provincial People’s Council and the Provincial People’s Committee to the Kon Tum Economic Zone Authority to carry out innovative activities in 2019, the authority attained certain initial achievements, established and approved adjusted industrial and economic zone development plans to rationalize infrastructure investment development; and strengthened cooperation with other provincial departments, branches and local governments to enhance State administration and attract more investment capital into Bo Y International Border Gate Economic Zone and other industrial parks.

However, many shortcomings also emerged in the course of deployment, particularly infrastructure development in local economic and industrial parks, due to insufficient State fund and complicated auction of land-use rights aimed to raise funds for economic and industrial park development.

How have you focused on investing and developing economic zones and industrial parks, particularly infrastructure system?

The Kon Tum Economic Zone Authority has actively worked with relevant departments and agencies to build infrastructure systems in Sao Mai Industrial Park, Hoa Binh Industrial Park (second phase) and Dak La Industrial Complex. Specifically, the authority gives priority to centralized wastewater treatment works compulsory to industrial parks; proposes measures to raise funds for infrastructure construction, and arrange local budget for land compensation and ground clearance.

To date, the authority approved urban embellishment projects and land creation projects for planning Sao Mai Industrial Park and second-phase Hoa Binh Industrial Park with wastewater treatment system investment projects in industrial parks.

In order to have investment funds for infrastructure construction in industrial parks, the Kon Tum Economic Zone Authority reviewed plans, defined places capable of exchanging for funds, proposed land-use right auctioning plans to competent authorities for approval for implementation, ensured effective use of land funds and mobilization of money from selling land-use rights for infrastructure investment to fulfil the targets set by Directive 20-CT/TU dated January 9, 2019 of the Standing Committee of the Provincial Party Committee. Specifically, plans for exchange of land for infrastructure investment in economic and industrial parks are expected to raise enough funds for complete infrastructure construction in Sao Mai Industrial Park and Hoa Binh Industrial Park (second phase) in the coming time.

What is the investment attraction policy for Bo Y International Border Gate Economic Zone and industrial parks in the coming time?

In the coming time, we will draw more investment capital for locally potential fields such as tourism, high-tech agriculture and processing industries. At Bo Y International Border Gate Economic Zone, we will attract investment projects on infrastructure construction and operation, investment projects on construction of production and processing facilities, trade, tourism and service investment projects like logistics, commercial centers, restaurants, hotels and banks. We will step up investment promotion into Bo Y International Border Gate Economic Zone, Dak La Industrial Complex and other industrial parks, and complete procedures to launch infrastructure construction investment projects in Bo Y International Border Gate Economic Zone, Sao Mai Industrial Park, Hoa Binh Industrial Park (second phase) and Dak La Industrial Complex to create ready production space for investors and build complete infrastructure.

In addition to upgrading and investing in some State-funded essential projects, investors have sped up the construction progress of trade and service infrastructure like border markets and border gate warehouses. Recently, many South Korean businesses came to study and prepared to register many production, business, trade and service projects in industrial parks and the border-gate economic zone.

In 2019 and beyond, foreign direct investment (FDI) flows into economic and industrial parks will increase strongly to unlock local potential advantages of Kon Tum province.

The Kon Tum Economic Zone Authority will be always ready to welcome and support investors to carry out investment projects with the most favorable conditions.

Thank you very much!