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Dinh Vu

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Last updated: Thursday, June 21, 2018


Van Phong Economic Zone and Industrial Zones Authority: Administrative Procedure Reforms, Active Investor Support

Posted: Friday, May 05, 2017

Always focusing on improving industrial zone development policies in Khanh Hoa province, reforming administrative procedures and protecting the environment, Van Phong Economic Zone and Khanh Hoa-based industrial zones have achieved practical success and become attractive destinations for domestic and foreign investors. To learn more about these contributions and successes, Vietnam Business Forum Magazine’s correspondent has an interview with Mr Hoang Dinh Phi, Director of the Van Phong Economic Zone Management Board.

Could you briefly introduce the status of development planning of Van Phong Economic Zone and other industrial parks in Khanh Hoa province, as well as their investment attraction results?
In 2014, the Prime Minister issued Decision 380/QD-TTg approving the revision of the master plan for construction of Van Phong Economic Zone of Khanh Hoa province to 2030, according to which Van Phong Economic Zone is defined as an integrated economic zone international container transhipment terminal, petrochemical industry, petroleum product transhipment and petroleum products play a central role in combination with tourism, services, industrial, fishery and other economic sector development. To date, Van Phong Economic Zone, including Ninh Thuy Industrial Park, has attracted 145 investment projects, including 119 domestic projects and 26 foreign projects. At present, 79 projects with a total registered investment capital of US$1.46 billion have already been put into operation. In addition, Van Phong is carrying out investment registration procedures for two new projects with a potential investment capital of US$6.5 billion, including Van Phong 1 BOT thermal power plant and Nam Van Phong oil refinery complex.

Furthermore, implementing the Prime Minister's Decision 1107/QD-TTg on approval of Vietnam industrial park development planning to 2015, with a vision to 2020, Khanh Hoa province established five industrial parks (Bac Cam Ranh Industrial Park, approved for exclusion from the list by the Prime Minister). Therefore, only four industrial zones are planned for construction and development in Khanh Hoa province, of which Suoi Dau Industrial Park is in operation and three other industrial parks (Ninh Thuy, Nam Cam Ranh and Van Thang) are under construction or in preparation for investment pooling.

How would you describe the advantages and disadvantages in attracting investment to industrial zones in Khanh Hoa province today?
Khanh Hoa has many competitive advantages, with technical infrastructure outside its industrial zones basically meeting projects in operation, for example, National Highway 1A and North-South Railway, airports and seaports (Suoi Dau and Nam Cam Ranh industrial parks). Tenants in Ninh Thuy and Van Thang industrial parks in Van Phong Economic Zone are entitled investment incentives as applied to those investing in areas with particularly difficult socioeconomic conditions. The province has favourable natural conditions, mild climate, rare disasters and flooding and storms; marine economic development, particularly shipbuilding, power electricity and fishery. Khanh Hoa also has good facilities for human resource training (at university, college and high-school levels) to meet recruitment demands by investors. every industrial zone has been planned to fit certain sectors and industries to avoid overlapping and unnecessary competition among them in investment attraction. However, the Van Phong Economic Zone and Industrial Zones Authority found that Van Phong Economic Zone and other industrial zones still face certain difficulties. Large-scale driving industrial development projects are still implemented slowly while it lacks an exemplarily successful industrial zone model like VSIP which is being strongly built in many places in the country. Inside infrastructure is still slowly invested to attract secondary projects into industrial parks.

As difficulties and advantages always come together, the authority must have practical and timely policies to catch up with the current trend. In this regard, we are focusing on finalising industrial park development support policies, studying the establishment of inter-agency single-window procedures (issuing investment licenses, granting land-use rights certificates, certifying fire prevention and control, granting construction permits, etc.), ensuring strict compliance with the one-stop single-window principle to further improve investment administrative procedures. The authority particularly attaches importance to clearing the ground to speed up the progress of infrastructure investment in industrial parks to attract secondary investors.

In the past years, many localities have paid much attention to attracting as many investment projects as possible into industrial parks, while making light of environmental criteria. How has the Van Phong Economic Zone and Industrial Zones Authority approached this issue?
According to the leaders of the Khanh Hoa Provincial People’s Committee, although the province's industrial growth has steady in the past years, it fails to correspond to the local potential. Being aware of this, the Van Phong Economic Zone and Industrial Zones Authority has always been active in every task to make Van Phong Economic Zone and other industrial zones in the province more worthy of investing in the eyes of investors. Especially, the task of State management on environmental protection was decentralised and authorised the authority to strictly implement and ensure time and quality requirements. Every year, the authority coordinates with competent State agencies to organise environmental protection inspections and examinations in economic and industrial zones. Then, the unit has guided tenants to strictly execute measures to minimise environmental pollution and promptly end acts of violation of environmental protection laws in the course of operation. The authority has also coordinated with related agencies to urgently settle emerging environmental disputes between tenants and surrounding socioeconomic concerns.

In order to attract more domestic and foreign investment capital, what objectives will the authority specifically aim for in the coming time?
In addition to being a good lead agency, which receives opinions from enterprises and timely handle problems and bottlenecks for them, the Van Phong Economic Zone and Industrial Zones Authority will continue to perform specific tasks in the coming time like coordinating and supporting infrastructure companies to draw investment in situ and assist procedures for expanding Suoi Dau Industrial Park in 2017 (added by 14.8 ha); coordinating and supporting investors to complete site clearance, speed up infrastructure construction investment progress in the first phase in 2017; coordinating in investment promotion for Ninh Thuy Industrial Park according to the plan approved; reporting to the Prime Minister on revocation of infrastructure construction investment project of Nha Trang Shipbuilding Industry Company in Nam Cam Ranh Industrial Park to give the opportunity to better investors.

Moreover, the Van Phong Economic Zone and Industrial Zones Authority introduced practical policies, particularly on-site investment attraction, welcomed and introduced Van Phong Economic Zone and industrial zones to foreign investors and businessmen. While supporting industrial park infrastructure companies to promote secondary investors into their industrial parks, the agency will coordinate with big investors operating in the economic zone and industrial parks to organise selective investment promotion conferences on specific fields. The authority also asks Vietnamese commercial counsellors and diplomatic missions in foreign countries and foreign commercial counsellors and diplomatic missions in Vietnam as well as domestic and foreign consulting firms to provide information and seek potential investors. The authority provides information and coordinates with local newspapers, television stations and other media to promote the image of Van Phong Economic Zone and industrial parks.


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