Drawing More Investment into Industrial Zones

11:40:23 AM | 18/3/2020

With its separate approach and continuous reform efforts, Soc Trang province has achieved remarkable results in investment attraction. Domestic and foreign enterprises have been increasingly confident about choosing Soc Trang province-based industrial zones to locate and expand their projects. Vietnam Business Forum Magazine’s correspondent has an interview with Mr. Ly Tuan Anh, Deputy Director of Soc Trang Industrial Zones Authority, on this issue. Cong Luan reports.

Could you please let us know current development and investment attraction results in industrial zones in the province?

In the Vietnam Industrial Park Development Plan to 2020 approved by the Prime Minister, Soc Trang province has five industrial parks, including 243-ha An Nghiep (Chau Thanh district and Soc Trang City), 160-ha Tran De (Tran De district), 200-ha Dai Ngai (Long Phu district), 286-ha Song Hau (Ke Sach district) and 217-ha My Thanh (Vinh Chau Town).

Funded by the state budget, the province invested in building and operating An Nghiep Industrial Park since 2006 and sought private fund for developing the remaining four industrial parks. So far, Tran De Industrial Zone (invested by Ha Thanh Concrete Joint Stock Company) was appraised and submitted to the Prime Minister for consideration and approval by the Ministry of Planning and Investment. Song Hau, Dai Ngai and My Thanh industrial parks are also drawing interest of some investors.

In general, industrial park development investment has been slowed down in the past time due to impacts of global economic downturn as well as some ineffective investment attraction mechanism and policies in the locality. But, even with only one industrial park established and operated since 2006, local industry has been substantially boosted. The average industrial growth was recorded at 24.07% in 2010-2020 (25.38% in 2010-2015 and 4.6% in 2016-2020). The operational industrial park generates production value of VND10-12 trillion annually in 2016-2020, accounting for 40% - 41% of the province’s total industrial production value.

In order to create a driving force for development and increase investment attraction, how has infrastructure planning and construction in industrial parks been addressed in the province?

Based on its industrial parks included in the Vietnam Industrial Zones Development Plan to 2020, Soc Trang province has focused on implementing some mechanisms and policies to support administrative procedures, compensate land reclaimed and clear investment site, and invest in technical infrastructure system outside industrial parks to quickly attract investment projects and operate infrastructure in industrial zones in the coming time.

Besides, the province considers adjusting and adding industrial parks to integrate them into local socioeconomic development plan in 2021-2030 and locates them in highly convenient locations. A particularly important factor, which has a great impact on promoting investment and development of industrial zones, is transport, especially maritime shipping. Therefore, the province is hoping the Government will supplement the planning and investment policy for construction of Tran De deep-water seaport. The establishment of this seaport will be a big turning point for promoting investment in socioeconomic development in the Southwest region in general and Soc Trang province in particular.

How has the Soc Trang Industrial Zones Authority endeavored to effectively carry out State management and development investment of local industrial zones?

The Soc Trang Industrial Zones Authority has actively advised the Provincial People’s Committee to propose the Prime Minister to adjust and supplement the Soc Trang Industrial Zones Development Planning to 2020; coordinated with relevant departments and localities in surveying, researching and developing the Economic, Industrial and Export Processing Zones Investment Development Program in 2021-2030, with a vision to 2045, to integrate into the Soc Trang Socioeconomic Development Master Plan in 2021-2030 as directed by the Provincial Party Committee and the Provincial People’s Committee. Moreover, the authority has also actively cooperated with relevant sectors to call for investment, reform administrative procedures, upgrade and complete the infrastructure systems inside and outside industrial zones; consulted and assisted investors to register and implement industrial park infrastructure projects, and launch production and business activities in industrial zones; promptly reviewed and removed difficulties and obstacles in investment, production and business activities; and ensured necessary and favorable conditions for investment and business activities.

With the above efforts of the Soc Trang Industrial Zones Authority, Soc Trang province has witnessed remarkable progress in attracting investment capital for industrial zone infrastructure investment projects and business projects in the past year. All planned industrial zone infrastructure projects have been registered by investors. The 120-ha Tran De Industrial Park with a total investment of over VND1,200 billion will be implemented, immediately after it has the Prime Minister’s decision. An Nghiep Industrial Park (invested by the government) has attracted 59 projects with a total registered capital of VND5,807.25 billion (including VND1,684.81 billion of FDI capital), of which VND3,974.69 billion has been disbursed (VND954.49 billion of FDI fund) or 68.44% of total registered investment capital. The occupancy rate was 97%.

Could you please tell us specific targets and goals of investment attraction into Soc Trang industrial parks in 2020?

2020 is the last year to implement the Soc Trang Socioeconomic Development Plan in 2016-2020. The Soc Trang Industrial Zones Authority has worked out, and is striving, to achieve its plan targets by attracting more production and business investment projects into An Nghiep Industrial Park to lease all rentable land, assisting its tenants to boost production value to over VND12,000 billion and an export value of over US$560 million. The authority will focus on deploying infrastructure construction in Tran De Industrial Park, supporting investors to make infrastructure investment in Song Hau Industrial Park (Ke Sach district) and Dai Ngai Industrial Park (Long Phu district) and build houses for workers in An Nghiep Industrial Park. It will coordinate with relevant competent agencies in worker training and labor supply for the industrial park.

By Cong Luan, Vietnam Business Forum