Vinh Long IPs - Promising Investment Destinations

Despite a late establishment, industrial parks (IPs) and industrial complexes in Vinh Long province have gained initially good achievements.

On December 18, 1998, the Prime Minister signed a decision on the establishment of the North My Thuan IP. However, when the My Thuan bridge opened to traffic in 2000, the building of the IP near the bridge was no longer reasonable as the location was suitable for developing tourism, trade and urban areas. Therefore, Vinh Long province decided to establish the Hoa Phu IP in Hoa Phu commune, Long Ho district to replace the North My Thuan IP and the plan was approved by the Prime Minister in 2002.

 

Hoa Phu IP: Located along national highway 1A with a total area of 250 hectares, the IP has a convenient geographic location, just 12 kilometres away from the Vinh Long port, 18 kilometres away from My Thuan bridge, 22 kilometres away from the Cai Cui port, 21 kilometres away from the Can Tho bridge and 140 kilometres away from Ho Chi Minh City. Hoa Phu is a concentrated IP, focusing on attracting investment to some key fields such as food and foodstuff processing, pharmacy and cosmetics, consumer goods and appliance manufacturing, textile and garment, electronic manufacturing and assembly, and handicraft.  

After three years, the Hoa Phu IP has attracted 12 enterprises with a total leased land of 77.9 hectares, accounting for 84 per cent of the land area for the first phase. These projects are capitalised at VND 275.5 billion plus US$25 million. Among the registered projects, four have started their production, and others are building workshops and facilities.

 

Exemplary projects in the IP include the Ty Xuan joint venture company, specialising in footwear production, which accounts for 80 per cent of production value of the foreign-invested sector in Vinh Long province; the Biofeed company, specialising in producing feed for aquaculture, which is thought to have become the second plant in Vietnam to have modern technology in feed production for aquaculture.

 

Binh Minh IP: Located in My Hoa commune, Binh Minh district with a total area of 132 hectares on the left bank of the Hau river, near Binh Minh port, right on an international waterway route, the Binh Minh IP is 30 kilometres from Vinh Long town in the southwest, 20 kilometres from Can Tho city, 15 kilometres from the Can Tho airport, between one and three kilometres from the Can Tho IP’s port, and 60 kilometres from the My Thoi port, An Giang province. At present, the Binh Minh IP has had a detail plan of the Ministry of Construction. Compensation and site clearance work has been completed by 96.5 per cent. The project developers are levelling 30 hectares for the building houses for workers and experts, and the trade and service complex. Under the project, the IP will concentrate on attracting investment in farm-produce and seafood processing, hi-tech and electronics.

 

Co Chien industrial complex: With an area of 249.5 hectares with eight lots in three communes and wards of Thanh Duc, Long Ho district, Ward 5, Vinh Long town, and My An, Mang Thit district, the complex is located along provincial road 902 and Co Chien river, four kilometres from Vinh Long town in the east. The complex has favourable location for developing the production of bricks and tiles, ceramics and construction materials. So far, the complex has completed 80.55 per cent of the compensation and site clearance of lot 04 and 90.51 per cent of lot 05. Some enterprises have invested in lot 04.

 

In the provincial competition index released by the Vietnam Chamber of Commerce and Industry (VCCI) in June 2005, Vinh Long ranked fourth among 42 provinces and cities. This proves the Hoa Phu IP and other IPs in Vinh Long province have attracted many investors thanks to the province’s open mechanisms and policies.

 

Apart from the Government’s regulations, Vinh Long province has offered incentives for Vietnamese and foreign investors. Accordingly, they will have their advertisement costs reduced by 50 per cent in the first three years on local media, including television, radio and newspapers. Vietnamese investors will be wholly exempted from costs for developing pre-feasibility projects and have 50 per cent of costs for developing feasibility projects and investment reports reduced. The province will provide support equal to whole costs for developing files of documents for foreign-invested projects and other priorities in land rent, time for land rent exemption, tax rate and other support services which are applied at the lowest prices as stipulated by the Government. Also, the first five investors to IPs will enjoy five years’ land rent exemption.

 

Vinh Long has abundant resources, including clay and sand, farm-produce and seafood materials to develop construction material production, pottery and processing industries. Furthermore, Vinh Long is one of the centres for human resources development in the Mekong delta with high quality universities, colleges and vocational training schools.