Vinh Phuc Industrial Parks Authority Promoting Connectivity Role

9:00:26 AM | 30/7/2019

On September 29, 1998, the Prime Minister issued Decision 190/1998/QD-TTg establishing Vinh Phuc Industrial Parks Authority in order to perform the function of State management of industrial parks in the province. Since its inception, Vinh Phuc Industrial Parks Authority has well promoted the role of advising on planning, building and developing industrial parks, thus helping form synchronous and modern industrial parks to meet local socio-economic development requirements.

Well performing advisory and administrative functions

When it was reestablished in 1997, Vinh Phuc province had only one industrial park (50-ha Kim Hoa Industrial Park - Phase 1). Immediately after its establishment in 1998, the Vinh Phuc Industrial Parks Authority advised the Provincial People’s Committee to set up many industrial parks. Up to now, the province has 18 industrial parks covering a total area of 5,228 ha. Among them, 11 industrial parks have been built by 12 technical infrastructure construction and operation investment projects, covering 2,159.1 ha and costing over VND8,305 billion and US$95.1 million. The occupancy rate in industrial parks reaches 65.1%, with many very high rates like Khai Quang (nearly 98%), Binh Xuyen (over 92%), Binh Xuyen II - phase 1 (100%), Ba Thien - phase 1 (100%), and Ba Thien II (87.8%).

Vinh Phuc Industrial Parks Authority has always focused on environmental management and protection, pollution control and project inspection with specific and practical activities: Regularly coordinating with relevant departments and agencies to communicate on environmental protection for secondary investors and industrial park infrastructure developers; closely monitoring environmental protection, addressing hardships emerging from wastewater treatment for tenants; strictly inspecting regulatory compliance with laws on investment, labor, planning, construction, environmental protection, fire prevention and fighting, food safety and hygiene and labor safety in industrial parks and ensuring social security, order and safety in industrial parks and tenants.

Besides, Vinh Phuc Industrial Parks Authority has actively promoted administrative procedure reform to create a favorable investment environment. The time required to get an investment certificate is just two-thirds of the regulatory time. Records and processes of administrative procedure settlement are listed publicly, transparently and highly appreciated by investors. Its administrative reform has significantly contributed to improving the investment environment and raising the Provincial Competitiveness Index (PCI), helping Vinh Phuc province secure a top 10 position in the country for many years.

Promoting and attracting investment funds

Determining that investment promotion and attraction is a key task, Vinh Phuc Industrial Parks Authority always actively advises the Provincial People’s Committee to promote and attract investment funds into industrial parks in particular and into the province in general, with priorities given to investment projects with large investment value, using modern environment-friendly technology, employing many workers and positively contributing to local socio-economic development. It actively seeks and joins many domestic and foreign investment promotion programs to introduce the local investment environment in general and industrial parks in particular.

Vinh Phuc Industrial Parks Authority pays due attention to renovating and professionalizing investment promotion in both form and content, especially access to major markets such as the European Union (EU), the United States and Japan. Thus, Vinh Phuc province-based industrial parks have drawn major domestic and foreign investment projects. So far, 16 countries and territories have invested in local industrial parks, including major partners such as Sumitomo, Honda, Toyota, Piaggio, Foxconn, Young Pong, Hyosung and Jawha. In addition to the increase in new projects, many previously licensed tenants have scaled up their investment to boost capacity, performance and product quality.

In 2018 alone, disbursed capital reached US$426.38 million, 21% higher than in 2017, and 56% more than the full-year plan. The total disbursed fund totaled US$2,286.14 million by the end of 2018, accounting for 56% of the total registered investment capital. Revenue of tenants exceeded US$4,510.01 million in 2018, up 11% over 2017 and equal to 95% of the yearly plan. Their export value grossed US$3,102.36 million, up 23% over 2017 and equal to 21% of the yearly plan. They paid US$2,675.98 million to the State Budget, up 23% year on year and equal to the value they paid in 2017.

The Vinh Phuc Industrial Parks Authority affirms that it will always work together with and support investors, gather its strength, wisdom, effort and unity to become a trusted address for domestic and foreign investors, making Vinh Phuc a bright spot for Industry 4.0 development for the growth of local industrial parks, to realize the goal of soon becoming an industrialized province and Vinh Phuc City, as stated in the Resolution of the 16th Provincial Party Congress.

By the end of 2018, the number of valid investment licenses in Vinh Phuc industrial parks was 290, including 54 domestic direct investment (DDI) projects with VND14,480.27 billion of registered investment capital, and 236 foreign direct investment (FDI) projects with US$3,205.3 million. They employed over 82,000 workers, each of whom is paid an average income of VND 6-9 million a month. These impressive figures show that projects are operating effectively. Every year, they contribute about 50 - 55% of the total industrial production value of the province, account for 60 - 65% of the total export value, and make up 30 - 35% of the total budget revenue. Vinh Phuc has managed to build a typical image for each industrial park, helping them to draw other satellite investors in a given production chain to form industrial parks tailored for certain industries.

Mr. Bui Minh Hong, Director of the Vinh Phuc Industrial Parks Authority, said, “In the coming time, the province will step up intensive industrial development so as to make supporting industries an important link of the supply chain for high-value industrial support products made by complete production lines of large-scale domestic and foreign corporations by 2025, and seek exports. In the 2017 - 2020 period, the production value of supporting industries is expected to reach VND67,400 billion, accounting for 38.9% of the total industrial production value, and 30-35 supporting industrial investment projects belonging to priority fields are expected to be licensed in the period.”