Kien Giang Economic and Industrial Zones Ready Land Fund to Catch New Investment Flow

10:26:23 AM | 3/7/2020

Carrying out the Resolution of the 10th Provincial Party Congress (2015-2020 tenure), the Kien Giang Economic Zones Authority has sped up investment promotion for industrial parks and Ha Tien Border Gate Economic Zone. Two industrial parks are operational, with Thanh Loc Industrial Park calling for the most investment projects and the largest investment value. We have a short conversation with Mr. Le Minh Trung, Director of the Kien Giang Economic Zones Authority, on this issue.

Could you please tell us about business performances of tenants in Ha Tien Border Gate Economic Zone and industrial zones to date? What are the role and contribution of Ha Tien Border Gate Economic Zone and local industrial parks to the province’s industrialization, modernization and international economic integration?

In the past time, with the support and guidance of the Provincial Party Committee and the Provincial People’s Committee, the support of the Government and central agencies and the close coordination of local authorities and agencies, Kien Giang province-based industrial parks have achieved very encouraging results in investment attraction. They have attracted 26 investment projects which hired 163.17 ha of land, of which the authority licensed 107.08 ha and VND6,448 billion of investment capital. Among them, 10 projects have gone into production 13 projects are under construction and three projects are applying for investment certificates. In 2019, tenants in Thanh Loc and Thuan Yen industrial parks reached total revenue of VND7,304.72 billion, export value of US$184.981 million, and paid nearly VND903.44 billion VND in taxes. In the first four months of 2020, their revenue was estimated at VND1,590 billion, equal to 19% of the full-year plan and equal to 90.8% from a year earlier. Their main products include MDF wood, leather shoes, beer, seafood and construction materials. Their accumulated export turnover was estimated at US$37.3 million in the four months, equaling 17% of the full-year plan and 63.6% from a year-ago period. Tenants have effective employment contracts with 9,286 workers, including 8,024 at work and 1,265 laid off.

The establishment of Ha Tien Border Gate Economic Zone and industrial zones is one important channel to attract investment projects to generate more industrial value and restructure the economy toward industrialization and modernization. When projects come into operation, they will create stable jobs for many local workers, thus helping raise incomes, reduce poverty and improve people's quality of life. Well-performing companies also pay taxes to local coffers.

Since early 2020, amid complicated development of the COVID-19 epidemic, could you please describe solutions adopted by the Kien Giang Economic Zones Authority to remove difficulties and facilitate enterprises to maintain production and business operations and respond well to the epidemic?

Facing the complicated development of the COVID-19 epidemic, the Kien Giang Economic Zones Authority often exchanged and encouraged investors and understood their investment and business performances to make reports to this effect to the Provincial People’s Committee for solutions to tackle emerging issues. The authority sent central and local instructions on disease prevention and control to enterprises and requested them inform their employees to strictly adhere to instructions delivered by the Ministry of Health and adopt preventive measures. The authority also directed businesses to actively work out business solutions for each scenario of the epidemic to cope with the COVID-19 epidemic, enhance governance capacity, and deal with their hardships for better success. The authority instructed and supported businesses to prepare administrative procedures and documents and reduce the time required to handle administrative procedures within its jurisdiction such as investment registration, construction design evaluation, construction permit and work permit for foreigners. Besides, the authority coordinated with relevant agencies to accelerate the handling of administrative procedures concerning land lease, environmental impact assessment report, fire prevention, land rent exemption and reduction.

In addition to the land fund in Ha Tien Border Gate Economic Zone and existing industrial parks, to provide more available land for local and external businesses and investors to carry out investment projects, what solutions will the Kien Giang Economic Zones Authority carry out?

The Kien Giang Economic Zones Authority has utilized central and local capital to carry out land compensation plans for Thanh Loc and Thuan Yen industrial parks to create a clean land fund for investors with new investment projects. Specifically, for Thanh Loc Industrial Park, the authority completed land compensation and clearance plans for 38.54 ha, bringing the total cleared area to 145.61 ha out of 155.64 ha (93.56%) in the first phase. For Thuan Yen Industrial Park, the total area of compensated area is 131.37 ha out of 133.95 ha (98.1%).

The authority also coordinated with relevant agencies to prepare additional compensation plans for households according to various options (12.52 ha, 16.44 ha and 38.54 ha) based on the land price bracket approved by the Provincial People’s Committee. At the same time, it invested in infrastructure items such as roads, sidewalks, drainage systems and lighting electricity in cleared area for new business projects. To have available land for investment flows redirected from China, the authority asked the provincial government to withdraw 100 ha (phase 2) of Thanh Loc Industrial Park and carry out preparation steps in 210.54-ha Xeo Ro Industrial Park.

In the coming time, what are the major tasks that the Kien Giang Economic Zones Authority takes to anticipate opportunities to attract investment into Ha Tien Border Gate Economic Zone and industrial parks to create a driving force to accelerate local economic restructuring?

The authority will further introduce local economic and industrial zones on the media; actively join investment promotion conferences, economic cooperation forums, and approach investors to introduce local potential advantages and invite them to local economic and industrial zones. The authority will invest in infrastructure items in industrial parks with assigned capital sources to manage and maintain technical infrastructure, ensure security and environmental sanitation in the industrial parks. The authority will spend more money for site clearance, including 100 ha (second phase) in Thanh Loc Industrial Park and prepare investment steps for Xeo Ro Industrial Park. The authority will also assist enterprises to deal with emerging hardships and propose the provincial government to settle issues beyond its authority to assure investors of doing business in the province. Last but not least, it will review and streamline some administrative procedures within its jurisdiction to further reduce the time and effort to settle these issues in the coming time.

Thank you very much!

Source: Vietnam Business Forum