IPs and EPZs: Priority for High-tech Projects

6:17:56 PM | 9/12/2011

Empowered by robust development of industrial parks (IPs) and export processing zones (EPZs) in the country, in the past 16 years (1994 - 2011), IPs and EPZs in Da Nang City has gained great achievements. IPs and EPZs serve as a nucleus that promotes economic growth, formation of industrial centres, and acceleration of economic restructuring.
At present, Da Nang City has six industrial parks and export processing zones covering a total area of 2,200 ha. Da Nang Industrial Park, initiated by late Prime Minister Vo Van Kiet and Malaysian Prime Minister Mahathir Mohamad, is the most successful industrial park in the city thanks to good infrastructure and centralised wastewater treatment systems.
The Da Nang Industrial and Export Processing Zone Authority has played a very important role in developing industrial parks and export processing zones rapidly and effectively. Currently, IPs and EPZs in Da Nang City are favoured addresses for domestic and international investors and serve as a driving force to attract investment capital. The rising number of domestic and foreign investment projects in IPs and EPZs over the past years reflects the growing interest of investors in a locality with a lot of privileges and advantages.
As of early 2011, the city’s IPs and EPZs housed 320 investment projects, including 253 domestic projects worth nearly VND10,000 billion (US$500 million) and 67 foreign-invested projects capitalised at US$563.9 million. Japan leads foreign investors in the city with 23 projects. IPs and EPZs have created jobs for 56,170 workers. At the end of 2010, companies in IPs had total revenues of US$2,609 billion (US$130 million) and US$188 million, paid around VND 365 billion to the State Budget, and earned US$200 million from exports (compared with just US$21 million in 1998), accounting for over 30 percent of the city’s exports.
Enterprises in IZs and EPZs abide by policies and laws; thus, they build harmony in labour relations. The Da Nang Industrial and Export Processing Zone Authority supports companies to recruit thousands of workers each year, organises many training courses on labour safety and sanitation, advises on investment, construction and environment, provides information, organises field trips to well performing enterprises. In recent years, the authority guides, supports, connects and accompanies investors, creates a healthy, transparent and public investment environment. The management board has spared no effort to simplify administrative procedures for investors, organising dialogues and meetings with investors to listen and seek solutions to troubles facing investors when they do business in the city.
Mr Pham Viet Hung, Director of the Da Nang Industrial and Export Processing Zone Authority, said: IZs and EPZs in Da Nang City received new sciences and technologies, introduced new management mechanisms in investment, financial and export fields, and contributed positively to local socioeconomic development. However, IPs and EPZs still have weaknesses. Particularly, the progress of investment projects is slow, only 21 out of 256 companies employ more than 500 workers, technological content is low, and its tax payments account for just 3.54 percent of total State Budget revenues in 2010.
Mr Hung said as the land is limited, the city will focus on attracting high-tech projects. Da Nang will give priority to projects using new production lines powered by advanced, modern technologies like precision engineering, electronics and high tech.
Hong Hoa