Binh Thuan Industrial Zones: Speeding up Construction and Drawing Investment

The industrial sector of Binh Thuan Province used to grow sluggishly. However, the establishment of Phan Thiet Industrial Zone and its initial results in investment capital attraction have affirmed the role and position of industrial zones (IZs), for local industrial development in particular and socioeconomic development in general.

 

In spite of modest achievements, industrial zones have initially boosted the development of aquatic and farm product processing, mechanics, building material production and export services. It also promoted expansion of concentrated material zones, produced new products and products with high technological content for export. These have helped the province earn more from exports.

 

More than six months after beginning operation, Phan Thiet IZ (the first phase) housed 17 projects with combined registered capital of VND450 billion (US$28.12 million) and US$25.725 million, including five foreign-invested projects. In spite of small investment sizes, most projects steadily expanded revenue, export turnover and export market. Industrial zone-based enterprises contribute 36 per cent to provincial industrial production.

 

As of late 2006, Phan Thiet IZ was expanded to the second phase with an additional 40.7 ha, developed by Trung Nguyen Co. Ltd. The company cleared nearly 70 per cent of land and started construction in April 2007. The second-phase of Phan Thiet IZ is hoped to be fully occupied by late 2008.

 

Ham Kiem IZ has been approved for construction by the Prime Minister, and listed in the national IZ development plan until 2015. Ham Kiem IZ is located in Ham My and Ham Kiem communes of Ham Thuan Nam District, next to National Road 1A, 9.5km from Phan Thiet City and 190 km from Ho Chi Minh City. The total area is 579 ha, including the 143-ha Ham Kiem IZ I, developed by Hoang Quan Binh Thuan Real Estate Consulting, Trading and Service JSC, and 436-ha Ham Kiem IZ II, developed by Binh Tan Consumer Goods Production Company I(Bita’s). In 2006, Hoang Quan Binh Thuan has finished site clearance and compensation for Ham Kiem IZ I. In early 2007, Hoang Quan Binh Thuan is conducting environmental impact assessments. At the same time, Bita’s is preparing site clearance and compensations for Ham Kiem IZ II. Construction on the two IZs is scheduled to begin in July 2007. The commercial area will be fully rented by 2010.

 

To form synchronous development, in addition to building industrial zones Binh Thuan Industrial Zones Authority works with relevant agencies and local governments to outline other infrastructure works outside IZs, like Nga Hai-Ham My urban zone and the 230-ha Ham Kiem residential, service and commercial zone. Transport, irrigation, electricity and post companies are building roads linking National Road 1A to IZs and infrastructure items inside IZs.

 

In addition, Binh Thuan also outlined several other industrial zones like Son My industrial and service complex (Ham Tan District), to gather companies specialised in mechanics, oil and gas by-products, petrochemical and chemical industries, construction material production, mineral processing, metal lamination, forest product processing, and consumer goods production. The province also built Son My IZ I, Son My IZ II and 925-ha Son My urban zone. Besides, many investors have registered for developing the 1,000-ha Tan Duc IZ, Tuy Phong IZ and Tuy Phong residential zone, expected to take shape in 2008.

 

The quick construction pace of Binh Thuan province-based IZs is thanks to investment promotion activities, as well as the reception and resettlement of investment processes from business surveys to project implementation. With those efforts, Phan Thiet IZ 2 has attracted three investors to lease 8 ha, Ham Kiem IZ I and II have 40-50 per cent of area registered for lease, and Son My IZ I has 100-120 ha leased. In 2007, investment promotion activities will be increased on websites, mass media, trade fairs, investment conferences and overseas visits. Especially, the province will host an investment promotion conference on the occasion of commencing construction on Ham Kiem industrial zones I and II. It hopes to lease the land soon.