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Last updated: Monday, September 25, 2017

 

Industrial Parks Gathering Investment Resources for Local Economic Development

Posted: Wednesday, September 06, 2017


Knowing that developing industrial parks will be able to attract resources for development investment, gradually build a modern industry to create a motive force for local economic restructuring towards industrialisation and modernisation, Binh Thuan province has made every effort to perfect the infrastructure system and pull investment capital into industrial parks in the past years.

Initial results
Binh Thuan province now has nine industrial parks covering 3,003 ha in total, approved for construction by the Prime Minister. Among them, six industrial parks with a combined area of 1,093 ha have been invested, while three, covering 1,910 ha, are being prepared for construction.

Although it has a lower level of industrial development than other provinces in the Southern Key Economic Zone, by tapping its abundant and diverse resources, young labour force, low land rent rates and specially streamlined administrative procedures, Binh Thuan province in general and its industrial parks in particular are drawing more domestic and foreign investors to study and form investment cooperation. Industrial parks have housed big investment projects, employed thousands of local workers, and significantly contributed to local economic restructuring. Thus far, Binh Thuan province-based industrial parks have attracted 65 investment projects, including 44 domestic projects with VND3,725.03 billion (US$166 million) of investment capital and 21 foreign projects with US$154.6 million. They rented 197 ha of land.

These industrial parks, though modest in number and scale, have significantly contributed to the province’s socio-economic development. Their industrial production value grows about 8 per cent a year, reaching VND3,500 billion in 2016, which accounted for 15 per cent of the province’s industrial production value. Their export value climbs 10 per cent a year, topping US$55 million in 2016, or 20 per cent over the province’s export earnings. Their tax payment rises 14 per cent annually. “However, most projects are exempted from taxes; thus, their contributions to the State Budget are not high. In 2016, they paid VND68 billion to the State coffers, accounting for 2 per cent of the province’s budgetary revenue,” Mr Huynh Giac, Director of Binh Thuan Industrial Parks Authority.

In addition, industrial parks have generated jobs for many local workers and processed local agricultural, forest and aquatic products. Especially, some big investors have brilliantly exercised community responsibility, taken part in charity activities, and financed study encouragement funds among other works.

Devotedly supporting investors
As the regulator of industrial park investment and development in the province, the Binh Thuan Industrial Parks Authority is always deeply aware that it is very important to reform administrative procedures, improve the business and investment climate, and timely support investors to tackle their hardships, he said.
Moreover, the authority hosts quarterly meetings with relevant agencies and investors in industrial parks to learn about existing matters and identify the best solutions. In particular, it orders its employees to guide and serve investors in a friendly and enthusiastic manner to provide best conditions for investors to carry out administrative procedures in the most convenient and quickest manner.

According to the Master Plan for Binh Thuan Industrial and Handicraft Development to 2020, with an eye to 2025, Binh Thuan province will basically complete infrastructure investment for its industrial parks, complete and operate thermal, wind and solar power projects. Giac said, to achieve these targets, the authority will focus on three main tasks. Firstly, it will work with competent agencies and localities to speed up site clearance to build infrastructure systems for industrial parks and supporting facilities outside. Secondly, it will press industrial park infrastructure investors to use their resources to build and complete Phan Thiet Industrial Park (second phase), Ham Kiem 1 Industrial Park, Ham Kiem 2 Industrial Park, Song Binh Industrial Park and Tuy Phong Industrial Park. Thirdly, it will step up annual investment promotion activities to introduce local advantages to potential investors.

Truong Thanh








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