Industrial Parks Proactively Welcome New Wave of Investment

1:25:21 PM | 12/9/2019

Industrial development has been identified as a key task of Binh Thuan province; in which, industrial parks (IPs) are the active factors contributing to the production value as well as industrial export turnover of the province, creating a driving force to promote the economic restructuring of the province towards industrialization. Vietnam Business Forum Magazine has conducted an interview with Mr. Phung Huu Cu, Directors of Industrial Parks Authority of Binh Thuan province. Duy Anh reports.

What is investment attraction as well as production and business operation in Binh Thuan IPs?

Binh Thuan province has nine IPs approved by the Prime Minister to include in the IP development plan with a total area of ​​3,003.43 ha. Currently, six IPs covering 1,093.43 ha have been engaged in investment basically meeting the ground requirement to arrange secondary investment projects. Up to now, the IPs have attracted 76 secondary projects (including 25 FDI ​​projects) with total investment capital of VND2,982.81 billion and US$173.15 million. The occupancy rate of the six IPs reach 23.68% of the industrial land area.

Out of the 76 projects granted valid investment licenses, 60 have received investments in building workshops and been put into effective business and production. In 2018, the projects earned VND4,095 billion, an increase of approximately 13.7% compared to 2017; export turnover reached US$82.06 million, up 29.6%; budget contribution was VND78.9 billion, up 10.2%; creating more than 10,000 jobs.

The above results are still modest, compared to the IPs of the provinces and cities in the Southern key economic zone; however, for Binh Thuan, it is an encouraging effort as the industrial investment conditions are quite difficult. Hopefully in the near future, when the Dau Day - Phan Thiet, Phan Thiet - Vinh Hao highways; Phan Thiet airport are completed, this will create favorable conditions for the faster development of Binh Thuan industry.

Towards a green economy, sustainable and efficient growth, Binh Thuan prioritizes environment friendly investment. Could you share more specifically about this?

Binh Thuan has always maximized favorable conditions to attract investment in IPs in order to create motivation for socio-economic development. However, we cannot disregard, for the sake of economic development, the negative impact of the project on people's lives, especially environmental pollution affecting the development of the province's agriculture and tourism industry. This stance is expressed in detail in Resolution 08-NQ/TU dated October 25th, 2016 of the Provincial Party Executive Committee (Session XIII) on the development of industries –  handicraft to 2020, with orientation to 2025, in which is stated: "drastically improving the investment environment to attract domestic and foreign investment; attract investment projects in line with the industry plan of each IP, prioritizing large-scale, high industrial production value and environmentally friendly projects, and projects with processing advantages of the province ".

With the above guidelines, recently, many domestic and foreign corporations have proposed investment in IPs of Binh Thuan with large-scale projects in the fields of weaving and dyeing; plating, spraying, metal polishing; steel production; pulp production; paints, additives, industrial detergents. We suggested that investors should consider using more modern technology, contributing to the protection of green economy, sustainable and effective growth.

How do you improve the efficiency of attracting investment into IPs?

In order to thoroughly solve the problem of clean land to improve the efficiency of investment attraction, we have cooperated with other relevant departments to advise the Provincial People's Committee on support policy of investment into technical infrastructure of industrial parks – industrial complexes in the area (Decision 64/2009/QD-UBND dated September 18, 2009 of the Provincial People's Committee); in which the province supports the work of compensation, site clearance and resettlement for people whose land is recovered for the IPs (the investor of IP infrastructure advances capital to perform compensation, site clearance, resettlement and this money will be deducted from land use levy); we invest in resettlement areas for people whose land is recovered for the IPs, investing in infrastructure outside the fence of the IPs.

With the central role, we always pay close attention to the direction of the Provincial People's Committee to monitor and urge investors of IP infrastructure, investors of works outside the IPs fence and relevant departments, the People’s Committees of districts having IPs in the areas to speed up the compensation and clearance, invest in completing the infrastructure system inside and outside the IPs. Every quarter, we hold a briefing meeting of IPs infrastructure investors and relevant departments and the People's Committees of districts having IPs in the area to solve and remove difficulties and problems; at the same time summarizing the implementation report and proposing the provincial People's Committee to settle it.

Regarding reform of administrative procedures, improving the investment environment, we frequently remind and make our people understand the importance of improving the responsibility of guiding and serving investors in a friendly, enthusiastic manner, support and provide maximum favorable conditions for investors to implement administrative procedures the most conveniently and quickly. Our administrative procedures are posted publically at agencies and public administrative centers of the province as well as on our website for investors to update and exploit; at the same time, we regularly update, review, propose to abolish unnecessary procedures, and reduce time to implement administrative procedures. The administrative procedure performance has been highly appreciated by investors, with 100% of the dossiers settled earlier than the prescribed time.

In the coming time, what key tasks will you set out to catch up with the new wave of investment into Vietnam in general and into local IPs in particular, thereby creating a driving force to promote the restructuring of the local economy?

Firstly, we will strengthen the inspection and supervision of investment progress as well as urge and remind the infrastructure investors to gather resources and allocate capital to accelerate the construction progress and completion of IP infrastructure in order to create a clean land fund of about 500 ha with synchronous and modern infrastructure meeting investors' needs.

Secondly, we will suggest the Provincial People's Committee to request the Government to consider directing the speeding up of the construction investment of the province's infrastructure, including focusing on investing in Dau Day - Phan Thiet and Phan Thiet - Vinh Hao highway projects; Phan Thiet airport in order to create favorable conditions for goods transport to help Binh Thuan's industry to develop and compete with southern provinces.

Thirdly, we will innovate and strengthen investment promotion activities in accordance with the actual conditions and situation. This includes the coordination between relevant departments and investors of IP infrastructure to organize conferences and seminars to call for investment in the IPs; enhance the introduction and promotion of investment potential in IPs through mass media; focus on foreign affairs to attract FDI; improve the investment promotion activities in place to attract potential investors, joint ventures and extending investment.

Thank you very much!