Local Economy

Last updated: Tuesday, February 19, 2019


Developing Sustainable and Effective Industrial Parks

Posted: Thursday, June 14, 2018

Constantly reforming and shaping a favourable investment environment to draw more and more domestic and foreign investors, Tay Ninh province in general and its industrial parks (IPs), export processing zones (EPZs) and border gate economic zones (EZs) advocate not developing at any cost, but seeking modern, effective and sustainable development. The following discussion was recorded by Vietnam Business Forum Magazine correspondent in an interview with Mr Nguyen Hong Son, Deputy Director of the Tay Ninh Economic Zone Authority. Cong Luan reports.

Could you please tell more about the results of investment attraction and business development in industrial parks, export processing zones and border gate economic zones in Tay Ninh province to date?
With rapid economic growth rate and opening investment policies, in recent years, the investment picture of IPs, EPZs and EZs of Tay Ninh province brightened. Development investment in IPs, EPZs and EZs like Phuoc Dong Industrial Park, Thanh Thanh Cong Industrial Park, Trang Bang Industrial Park and Linh Trung 3 Export Processing Zone accelerated on increased capital for production expansion.

In 2017, the Tay Ninh Economic Zone Authority issued investment certificates to 29 new projects with an aggregate investment capital of US$734.39 million and VND369 billion. Total investment capital, including fresh and additional investment, reached US$920.41 million and VND164.67 billion (US$7.2 million). The outcome exceeded the plan by 32.56 per cent (US$700 million) and was 17.89 per cent higher than the same period last year (US$787.11 million). In the first three months of 2018, the authority granted permits to 12 new projects with US$92.7 million and VND122 billion of investment capital and allowed 10 projects to add US$141.22 million and VND1,543,87 billion.

As of March 31, 2018, IPs, EPZs and EZs housed 316 valid investment projects, including 215 FDI projects and 101 domestic projects, with a total registered investment capital of US$4,954.68 million and VND16,103.62 billion. Among them, 221 projects are in operation.

With the support from the Tay Ninh Economic Zone Authority, tenants’ production and business performances achieved positive results and positively contributed to boosting local socioeconomic development, increasing export revenue and budget revenue, and creating jobs for local workers. In 2017, their export value reached US$3 billion and their revenue amounted to US$2.8 billion. They paid US$763 billion of taxes to the State Budget and employed 5,091 workers. As of December 31, 2017, as many as 110,073 labourers are working for tenants in IPs, EPZs and EZs.

Infrastructure development investment is one of important factors that helps enhance the attractiveness of the investment environment. Therefore, how has Tay Ninh province accelerated infrastructure construction investment in IPs, EPZs and EZs?
As for operational industrial parks, infrastructure investors basically invested in complete infrastructure for tenants. The provincial government meanwhile paid attention to building connecting infrastructure to industrial parks, especially transport infrastructure.

As for Moc Bai Border Gate Economic Zone, the Tay Ninh Economic Zone Authority expeditiously disbursed ODA-sourced loans for infrastructure investment and improved the service of technical infrastructure. It also proposed the target programme for industrial and logistics service development to create new motivations for Moc Bai to become a new urban area.

In addition, the province is keen on speeding up the progress of Ho Chi Minh City - Moc Bai highway construction project and soon completing Moc Bai and Xa Mat border gate economic zones for stronger development in the coming time.

What solutions will the Tay Ninh Economic Zone Authority adopt and deploy to support tenants in local IPs, EPZs and EZs in 2018?
Improving the business environment and enhancing competitiveness continues to be one of main tasks and solutions in the Socioeconomic Development Plan ratified by the Provincial People’s Committee in Decision 01/QD-UBND dated January 2, 2018 to create most favourable conditions for business investment, encourage technological innovation, foster corporate competitiveness, and further uplift the province’s PCI rankings.

To ease up administrative work for organisations, individuals and enterprises, the Tay Ninh Economic Zone Authority will further simplify administrative procedures and shorten the time needed to handle investment administrative procedures to offer best conditions for them to carry out projects in IPs, EPZs and EZs.

In the bargain, we will also actively monitor and capture their production and business operations, promptly remove hardships against them; deliver best public services, support and facilitate businesses to operate effectively. All these efforts are aimed at building trust and satisfaction of enterprises and investors and actively bettering the local investment environment.

Could you tell us more about the investment attraction strategy and its specific targets and indicators for IPs, EPZs and EZs in Tay Ninh province this year? What are the fields that IPs, EPZs and EZs prioritize in promoting and attracting investment capital?
In 2018, the Tay Ninh Economic Zone Authority has endeavoured to attract US$700 million of investment capital for IPs, EPZs and EZs. Tenants in IPs, EPZs and EZs will earn the export value of US$3 billion, spend US$1.8 billion on exports, generate industrial output value of US$2.8 billion, and pay VND1 trillion to State coffers.

Tay Ninh province is making every effort to achieve common goals. It will not choose to develop at all costs but head for modernity, effectiveness and sustainability. As for industrial parks, the province attaches great importance to building technical infrastructure and social infrastructure (schools, kindergartens, etc.) in order to develop industrial parks in a sustainable manner. Tay Ninh will give priority to luring investment capital for supporting industries (mechanical engineering and rubber) and capital-intensive industries.

Thank you very much!

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