Increasing Investment Flows into Industrial Parks

4:23:03 PM | 7/12/2022

The increase of investment flows into industrial zones in Son La province has helped boost modernized industrial development and created a driving force for local economic and social development. Mr. Bui Van Man, Director of Son La Industrial Zones Authority, gives an interview to Vietnam Business Forum's reporter on this content.

Local authorities pay a field inspection to Mai Son Industrial Park

Son La province currently has two industrial zones - Mai Son Industrial Park and Van Ho Industrial Park - approved for establishment by the Prime Minister and included in the Vietnam Industrial Park Development Master Plan to 2020. How has development planning and investment attraction been performed in these two industrial parks?

Mai Son Industrial Park (first phase) covers 63.7 ha, including rentable industrial land area of 47.96 ha for lease. Son La Industrial Zones Authority has licensed 10 projects which hired 34.7 ha of land (occupancy rate of 72.3%) and registered to invest VND1,001 billion or VND28.87 billion per hectare of rented land. Five projects have been put into production. In the year to June 30, they raked in combined revenue of VND1,948 billion, earned export value of US$49.73 million, paid VND19.5 billion to the State budget, and employed 231 workers (mainly locals).

In addition, after their research, many investors registered to locate their projects in Mai Son Industrial Park (unrented area of the first phase and the second phase). Licensed factories are largely engaged in agricultural and forest product processing.

Besides, Son La Industrial Zones Authority advised the Provincial People's Committee to ask the Ministry of Planning and Investment to appraise the pre-feasibility study report on infrastructure construction investment in Mai Son Industrial Park (second phase). Currently, the authority is preparing a revised master plan to complete the pre-feasibility study report according to opinions of the Ministry of Planning and Investment in Report 2422/BC-BKHDT dated April 13, 2022 and then submit it to the Prime Minister for approval. The agency is, at the same time, preparing for project implementation to 2025. Main contents of the project pre-feasibility study report include building the technical infrastructure for the 86.3-ha park, building technical infrastructure for resettlement and worker housing areas adjacent to the industrial park.

The construction blueprint for Van Ho Industrial Park is prepared, appraised and approved as per Decision 2071/QD-UBND dated August 27, 2021 of the Provincial People’s Committee. In particular, on January 4, 2021, the Prime Minister approved to add Van Ho Industrial Park of Son La province (216.64 h) to the Vietnam Industrial Parks Development Plan to 2020 in accordance with Official Letter 3/TTg-CN and in accordance with the construction master plan for Moc Chau National Tourist Area to 2030 as per Decision 296/QD-TTg dated March 2, 2022 of the Prime Minister.

The blueprint was consulted by the Ministry of Construction in Official Letter 1086/BXD-QHKT dated April 1, 2022. Son La Appraisal Council gathered on April 7, 2022 to approve the planning. The Standing Board of the Provincial Party Committee agreed on blueprint contents in Official Dispatch 1738-CV/TU dated April 18, 2022. The Provincial People's Council approved the blueprint in Resolution 83/NQ-HDND dated May 10, 2022 and the Provincial People's Committee ratified it in Decision 1292/QD-UBND dated June 29, 2022.

Adhering to directions of the Provincial People's Committee, the Working Group directed industrial zone development and the Son La Industrial Zones Authority supported potential investors to follow the order, procedures, and documents of investment and construction. Potential investors are preparing and finalizing pre-feasibility study reports for their projects, expected to be submitted to competent authorities for approval and completed in 2022.

What has the Son La Industrial Zones Authority done to support and facilitate businesses and investors in industrial parks in recent years?

As an administrator of industrial zones and a lead agency that directs, receives and settles administrative procedures in respect of investment and construction for investors in industrial parks, Son La Industrial Zones Authority has endeavored to effectively perform its functions and tasks and support investors in an effort to make the province a really attractive destination for domestic and foreign investors.

To improve the investment environment, sharpen competitiveness and boost local socioeconomic development, Son La Industrial Zones Authority has seriously enhanced publicity and transparency of administrative procedures. All administrative procedures under its jurisdiction are publicly announced at single-window divisions and on relevant websites. Administrative reform is regularly directed and cared for, with focus on accelerating administrative procedure reform. The authority has actively reviewed, abolished, simplified, reduced time and raised the quality of administrative procedures under its jurisdiction. It has also maintained regular meetings and dialogues with investors and businesses to promptly tackle difficulties and support investors to carry out their business activities.

The agency has also drafted, edited, finalized and published the Investment Handbook in Industrial Park to help investors, organizations and enterprises with an overview of the investment process and with easier access to investment procedures. At the same time, it has actively coordinated with competent agencies to support investors and businesses to execute administrative procedures and other related issues.

Son La Industrial Zones Authority established an advisory group to guide tenants; founded a working group in charge of construction decentralized by the Provincial People's Committee; and issued official documents to execute regulations on construction management in Mai Son Industrial Park.

What fields should Son La focus on in the coming time? And, what tasks and solutions has Son La Industrial Zones Authority taken to effectively implement industrial zone development goals?

Son La province needs to prioritize investment resources to complete synchronous and modern industrial zone infrastructure, and focus on attracting investment funds into industrial zones to unlock local potential strengths such as agricultural and food processing, vegetable and fruit preservation and processing, bio-organic fertilizer production.

The province has further sped up administrative reform to provide all favorable conditions for people and businesses; boosted investment promotion to woo domestic and foreign investors to invest in local economic development.

In order to effectively implement the province’s industrial zone development goals as directed by the Provincial Party Committee and the Provincial People's Committee, in the coming time, Son La Industrial Zones Authority will focus on performing key tasks and solutions below:

First, stepping up investment promotion into industrial zones; actively coordinating with other agencies and sectors to launch investment promotion; raising quality and effect of investment attraction; basing on local potential advantages; regularly meeting and exchanging with tenants to promptly remove their difficulties in investment and business operations.

Second, completing the pre-feasibility study report and submitting to the Prime Minister for approval the investment plan of Mai Son Industrial Park (second phase).

Third, focusing on solving difficulties, speeding up site clearance and building essential infrastructure in Mai Son Industrial Park and Van Ho Industrial Park to meet investors’ needs.

Fourth, proposing mechanisms and policies to mobilize resources for industrial zone infrastructure investment and operation. In addition to state budget and capital from the Land Development Fund, it is necessary to pay attention to enticing investors’ capital: Advance capital for site clearance, which will be then used to offset land rent and infrastructure rent; encourage infrastructure investment and operation projects for electricity supply, water supply, environmental treatment and ground working.

Fifth, accelerating administrative reform (with a focus on administrative procedure reform) towards simplicity, efficiency and practicality; strengthening information technology application to settlement and publicization of administrative procedures; proposing and performing decentralization and authorization of administrative procedures in single-window divisions to Son La Industrial Zones Authority.

Sixth, fortifying state administration of industrial zones, planning, investment, construction, environmental protection and fire prevention.

Thank you very much!

Duy Binh (Vietnam Business Forum)