Tien Giang's Industrial Parks – Ideal Destination for Investors

3:26:37 PM | 8/7/2005

Tien Giang's Industrial Parks - Ideal Destination for Investors

Open mechanisms and appealing incentives have markedly stimulated enterprises’ investment enthusiasm into industrial parks (IPs) in Tien Giang. The initial success of My Tho IP, the very first in the province, is a strong impetus for Tien Giang to call for investment in Trung An Industrial Complex and Tan Huong IP.

Open mechanism

As an agricultural-based economy, Tien Giang has actively focused on industrial development in an effort to create a significant transition, paying a great deal of attention to the construction of IPs which is seen a momentum for the province’s industrialization and modernization strategy.

Construction of the 79.14-hectare My Tho IP officially started in mid-September 1998. Being Tien Giang’s first IP the process suffered from a lack of experience and funds as well as proper mechanisms.  In the first stage of operations, the IP had attracted only two projects by 2001.  Decision No.45 issued on October 16,2001 is considered a landmark for the IP’s development as it helped simplify and shorten investment procedures. Investors can enjoy land rent reduction or exemption during infrastructural construction. This brought back optimistic results as from 2001 to 2004, 19 new projects registered to operate in My Tho IP, raising the total investment in projects to 21. Total leased acreage came up to 57.43 hectares, accounting for 93 percent of serviceable area, and the total registered capital reached US$87.15 million and VND273.28 billion. This provided momentum for the province’s decision to expand Trung An industrial complex (17 hectares) which came into operation in 2002. So far, 100 percent of its area has been leased with 12 projects worth a total of US$3.45 million and VND144.4 billion.

My Tho IP and Trung An Industrial Complex reported their total industrial production value of nearly VND800 billion in 2004 (represents 36.9 percent of the province’s industrial value, up by 25.17 percent over the same period last year). Of the figure, US$15.22 million came from exports, 3.98 times higher than the corresponding period form the previous year, while US$4.3 million and VND8.5 billion went to tax payment. Around 5,800 labourers have been provided with stable jobs and over 10,000 are expected to be hired when all plants go into operation.

Unlocking difficulties with enterprises

In 2004, Tien Giang regularly held seminars and conferences which are seen as a bridge linking businesses with the local authorities. Local officials are therefore able to grasp problems arising during business performance. This has created a favourable investment environment for enterprises in these two IPs. Typical is Hung Vuong Co., Ltd. who has raised its total investment to VND65 billion so far. The company produces over 5,000 tons of tra fillet for export annually for which over 500 laborers have been hired. Another example is Go Dang Co., Ltd. who produce over 1,500 tons of seafood of all kinds. In November 2004, the company brought a new 6,000-sq.m plant worth VND18 billion into play which employs over 300 laborers. Badavina Co., Ltd also increased its investment from US500,000 to US$650,000 and expanded its business lines (activated charcoal and salt for export). The corresponding investment figures are reported from US$10 million to US$11.45 million in Tien Giang JSC branch and US$1.2 million to US$2.2 million in MSA-Nha Be JV.

After My Tho and Trung An, Tien Giang province is developing Tan Huong IP which is now in the first phase of infrastructural construction (138.03 hectares/240 hectares). Forty hectares of the area will be for the construction of resettlement structures. The local authorities have pushed up administrative reform with “one-door & on-the-spot” policies which has shortened the licensing period. It takes a mere two to three days for foreign investors to receive an investment license while local investors need wait only one to two days.

The formation of IPs and industrial complexes has played a crucial part in the province’s economic restructuring. In acquiring a strongly skilled labour force, Tien Giang has spent a lot of money in its vocational school and community college. It plans to build two job training centres for western (located in Cai Lay) and eastern districts (Go Cong Town) in the coming time to meet increasing labour demands of IPs.

  • Hoa Binh

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