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Last updated: Thursday, December 13, 2018


Towards Green, Environment Friendly and Sustainable IPs

Posted: Monday, December 11, 2017

Long An industrial parks (IPs) have gone through 20 years of investment and development. The Long An IPs have contributed to the conversion of lowland agricultural areas in Duc Hoa, Ben Luc and Can Giuoc districts into industrial parks with high economic efficiency, bringing jobs and income, attracting large numbers of labourers, speeding up urbanisation in remote rural areas, contributing greatly in the process of economic restructuring of the province. To learn more about the attractiveness of Long An IPs, Vietnam Business Forum has an interview with Mr Truong Van Trieu, Director of the provincial Economic Zones Authority. Duy Anh reports.

Could you tell us more about the development process, as well as the results of investment attraction, of IPs in the province over the past 20 years?
In 1997, the first two IPs in the province were Duc Hoa I and Duc Hoa II (now Xuyen A IP). Up to now, there are 28 IPs in Long An with a total area of 10,557.84 ha; of which 25 IPs have been granted investment certificates with an area of 8,371.65 ha, total investment capital of US$62.7 million and VND36,735.49 billion. In addition, Long An has a border gate IP with a total area of 13,080 hectares, which is gradually being developed. Currently, Binh Hiep border gate IP has been invested in business and investment activities and is a new potential investment destination for many domestic and foreign investors.

Up to now, the IPs of Long An province have attracted 1,278 projects, including 550 FDI projects, a total investment capital of US$ 3.28 billion and 728 domestic investment projects with total investment capital of VND62,711.36 billion. The situation of attracting investment in Long An IPs in recent years has seen a strong growth over the years in terms of number of projects and investment capital.

Of the total 1,278 existing projects in the industrial parks in the province, there are 798 active projects, creating more than 105,400 jobs. The IPs in operation, whose areas accounting for less than 0.3 percent of the total natural land area of the province, accounts for 8.1 percent of total employment of the province, but contributes nearly 30 percent of total state budget revenues. Only in 2016, enterprises operating in IPs contributed nearly 30 percent of the total budget revenue, of which the FDI sector contributed US$66 million, an increase of 29 percent compared to 2015; domestic enterprises contributed VND1,300 billion, up 37 percent.

In terms of industrial development, Long An has only just begun to emerge as a new investment destination in comparison with Binh Duong and Dong Nai. However, the results of investment attraction as well as the development of enterprises have partly reflected the strong investment attraction in Long An. Besides the large brands such as Sapporo, Vina Eco Board, Kyodo Sojitz and Songwol Vina, the development of many small and medium enterprises in supporting industry is one of the strengths of the province. With the strength of pre-built factories, the IPs have attracted a large number of industrial production supporters from many countries, including those with high technology production base such as Japan and Korea.

The establishment and development of industrial parks is considered a nucleus and a driving force for socio-economic development; therefore, over the past time, the province has implemented many solutions for the development of green, environment friendly and sustainable IPs. Could you elaborate on this development?
Most IPs in Long An have complete infrastructure including transport infrastructure, power supply system, and clean water for production. The province always requires infrastructure investors to build qualified wastewater treatment systems ensuring that wastewater must be treated before being discharged into the external environment, always meeting the criteria prescribed in column A according to the regulations of the Ministry of Natural Resources and Environment. In addition, some IPs even recycle all waste water for their trees in the IPs.

Most IP infrastructure investors are very interested in protecting the environment and consider this a measure of prestige compared to secondary investors. Over the past time, besides ensuring the environmental procedures, the inspection and supervision are always closely coordinated by the authorities and investors, timely handling issues. The construction and development of industrial parks for enterprises to invest in production is a right policy that not only motivates economic development but also contributes to environmental control.

Especially, in recent years, Long An has successfully implemented socialisation of investment for socio-economic development. All 28 industrial parks in the province are invested by private enterprises. The dynamism of businesses is the key to achieving the investment attraction results over the past time; In addition, the support to solve difficulties for enterprises of the provincial leaders has contributed to improving the quality of the investment environment, as well as the reform of administrative procedures, improving the satisfaction of the business to create motivation to attract investment.

Determining infrastructure development is the core issue for enterprises to operate and circulate goods. Therefore, the IPs in the province have complete transportation infrastructure, which is invested in synchrony with the water supply system, waste water treatment, power supply before being put into operation.

Can you share more about investment attraction in Long An IPs in the period 2016-2020?
Our orientation is that industrial development must be linked to environmental protection, not at the expense of environment. Therefore, the general policy of the province is to attract investment occupations with less risk of pollution. In addition to investment promotion, we welcome and invite domestic and foreign investors from many countries to bring into play all aspects of the provincial economy and develop the technology strength of each province. That is why we always create conditions for businesses to access information of IPs in Long An province in international language or their native language.

At present, the Economic Zones Authority has set up a separate website to serve investors' inquiries and we also translate all information about investment environment into three languages (English, Japanese, Korean) for businesses to search for information. Having staff with good foreign language skills, the Economic Zones Authority always maintains the support to provide information to domestic and foreign investors quickly via email or telephone.

Especially, the Economic Zones Authority is most concerned about the promotion of on-the-spot investment in order to improve the satisfaction of enterprises through the reform of administrative procedures. Every year, we regularly hold dialogues with enterprises, record, solve immediately or make recommendations to higher level agencies to find solutions to difficulties for businesses. In addition, through the channels of contact with business associations (Jetro, Kotra, and so on), we regularly provide timely information and inquiries of businesses.

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