Prioritizing Hi-tech, New, Clean, Efficient Projects

10:48:32 AM | 2/8/2019

Van Phong Economic Zone will give priority to projects using advanced, new, clean and efficient technologies, said Mr. Hoang Dinh Phi, Director of the Van Phong Economic Zone Authority. Khanh Hoa province is and will continue to focus on attracting hi-tech investment projects using high, new, clean and efficient technologies and support advanced tech application companies to create highly competitive local products. Quoc Hung reports.

Could you please tell us about your economic and industrial zone development planning?

According to the Prime Minister’s Decision 1107/QD-TTg dated June 21, 2006 on approval of industrial parks in Vietnam to 2015, with a vision to 2020, and other Prime Minister’s decisions, Khanh Hoa province has planned four industrial parks. Specifically, Suoi Dau Industrial Park has completed infrastructure and has been put into operation; Ninh Thuy Industrial Park’s infrastructure is under construction; Cam Ranh Industrial Park is calling for investors to build infrastructure; and Van Thang Industrial Park is lying in a special administrative division and temporarily pausing investment attraction.

How is your investment attraction outcome?

Suoi Dau Industrial Park is the first industrial park in the province, covering an area of 137 ha. With a complete infrastructure, its occupancy rate has reached 92%. Specifically, the park has attracted 55 investment projects (35 domestic projects and 20 FDI projects) with a total registered capital of US$249.11 million, of which 38 projects are in operation. In 2018, its tenants reported combined revenue of US$405.6 million, paid VND32.42 billion to the State Budget, and employed 12,807 employees.

Van Phong Economic Zone, established under the Prime Minister’s Decision 92/2006/QD-TTg dated April 25, 2006, covers a total area of about 150,000 ha (about 70,000 ha of ground and 80,000 ha of water surface) in Van Ninh district and Ninh Hoa town. In 2014, the Prime Minister issued Decision 380/QD-TTg dated March 17, 2014 approving the adjusted master planning for construction of Van Phong Economic Zone till 2030: A multi-industry economic zone, in which the international container transshipment terminal, petrochemical and oil refining, and oil and petroleum product transshipment play a mainstream role, supported by tourism, service, industry, aquaculture and other economic sectors. Being an economic center of Khanh Hoa province, Van Phong Economic Zone plays a leading role in investment attraction and serves as a driving force for development of surrounding areas and the whole country.

So far, Van Phong Economic Zone (including Ninh Thuy Industrial Park) has licensed 161 investment projects (131 domestic projects and 30 FDI projects) with a total registered capital of US$4 billion, of which US$691 million has been disbursed. Of the projects, 83 have been put into operation and 78 are under construction. In 2018, they fetched combined revenue of US$410 million, generated 6,000 jobs, and paid VND174 billion to State coffers.

Investment attraction in Van Phong Economic Zone is still is not as expected. Why?

The infrastructure construction and investment attraction into Van Phong Economic Zone has not been as expected due to subjective and objective reasons. One reason, I think, is that industrial projects which are of large scale and play a motivational role, are being carried out slowly and they are yet to generate a strong magnet to investors, especially investors that support these projects. Locally, the province has not shaped a typically successful industrial park model that produces a strong impact on drawing new investors as in other provinces and cities. In addition, the province's infrastructure investment support policies have shortcomings and lack details.

So, to enhance investment attraction outcome, what are your solutions?

We have been working to further improve the investment and business environment, focusing on reforming administrative procedures and reducing the time required for investors under the single-window mechanism. We provide the most favorable conditions for investors, and improve the quantity and quality of human resources for tenants in local economic and industrial zones by introducing internal and external training cooperation and encouraging enterprises to organize in-house training, which is partially funded by the State.

We focus on drawing investment projects using high, new, clean and efficient technologies, supporting enterprises to apply advanced technologies to create competitive products, boosting investment inflows to export-driven processing industries or projects that tap local advantages of transport infrastructure and seaports in the economic zone.

Thank you very much!