Local Economy

Last updated: Tuesday, March 26, 2019


Industrial and Economic Zones: Driver for Rural Urbanisation and Economic Restructuring

Posted: Thursday, January 10, 2019

Promoting available potential advantages, Long An province has made breakthroughs in development and investment attraction into industrial parks and border-gate economic zones in the past years, aiming to become a productive destination. The following is the interview Mr. Truong Van Trieu, Director of the Long An Economic Authority, given to the Vietnam Business Forum Magazine. Hoang Lam reports.

Could you briefly introduce main features on industrial parks and border-gate economic zones in Long An province?
At present, the province has 28 industrial parks covering 10,557.84 ha, which have been added to the Vietnam Industrial Zones Development to 2015 and further to 2020 by the Prime Minister. Among them, 16 industrial parks are operational, covering 2,702 ha and reaching an occupancy rate of 81.37%.

To date, local industrial parks have housed 1,412 projects, including 637 foreign direct investment (FDI) projects and 775 direct domestic investment (DDI) projects with an aggregate fund of US$3,790.15 million and VND77,971.26 billion respectively. 864 projects are active, including 383 FDI projects with US$2.12 billion and 481 DDI projects with VND21,901 billion. The rapid development of industrial parks has resulted in the development of surrounding cities and services. Thus, previous wild land and unproductive agricultural land in Duc Hoa, Can Giuoc and Ben Luc districts have become industrial parks generating high economic value, accelerating the urbanisation process in rural areas, and restructuring the economy towards the right pattern. Industrial parks have created about 133,000 jobs.

Long An province has been approved by the Prime Minister for establishment of Long An Border Gate Economic Zone covering 13,080 ha, which has attracted two 21.2 ha FDI projects with an investment of 21.2 ha and two 0.66-ha DDI projects.

Could you please tell us more about your effort to support enterprises?
The Long An Economic Zone Authority has carried out measures to support businesses, especially reducing the time for settling administrative procedures (some administrative procedures reduced settlement time by 30 - 50%); dealt with administrative procedures in a transparent, quick and lawful manner, and facilitated organisations and individuals to implement administrative procedures. The receipt and return of results of administrative procedures is applied at the Long An Provincial Public Administration Service Centre for all administrative procedures under the jurisdiction of the authority, which strives to handle all dossiers on time.

Currently, the Long An Economic Zone Authority has a total of 56 administrative procedures, of which 22 are provided online at Level 3. The authority has effectively settled administrative documents for organisations and individuals, with over 80% documents handled before the deadline and no documents completed behind time. This has helped raise the satisfaction of organisations and individuals in administrative procedure settlement.

Infrastructure development investment is one important factor to enhance the attractiveness of the investment environment. So, how have you invested in completing infrastructure in industrial and economic zones?
In the past years, infrastructure investment in industrial parks has been implemented quite well by infrastructure investors. 100% of operational industrial parks have wastewater treatment plants. Infrastructure investors always support and facilitate enterprises to accelerate their progress and put projects into operation.

As for border gate economic zones, two investors are asking for infrastructure investment permits and one investor has already permitted industrial park infrastructure investment by the Provincial People’s Committee. The Long An Economic Zone Authority is guiding investors to implement investment procedures. To strongly develop border-gate economic zones, the authority continues to invite businesses to research and invest in projects: Binh Hiep Border Gate Industrial Park infrastructure, residential and commercial infrastructure, and high-tech agricultural investment project.

Could you please share more about investment promotion for local industrial and economic zones to 2020?
From now to 2020, the province’s industrial and economic zones will give investment priority to the following sectors: supporting industries, agricultural product processing industry, high-tech agricultural application, and satellite urban development, port logistics development towards high efficiency, technology application and sustainable development. We will select projects generating high added value, adopting modern environment-friendly technologies and utilising local potential and strengths. We will also promote businesses to engage in production processes, support them to upgrade technologies, improve competitiveness and management experience. We will seek opportunities for cooperation, direct investors to large-scale projects and global value chains, and focus on key markets such as Japan and South Korea.

To improve investment attraction in industrial and border-gate economic zones, in addition to building publications and documents for investment promotion, the authority will also promote communications on investment environment, policy, potential, opportunity and investor connection like introducing Long An province-based economic zones, industrial parks, residential and commercial projects in the Economic Zone seeking for investment. We will also work with relevant bodies to introduce other residential and commercial projects in Long An province.

In addition, we will prioritise domestic and international cooperation on investment promotion such as investment promotion programmes in Japan, Russia, Taiwan (China); local connection and investment promotion programmes in California and Virginia (USA), and in South Korea; and the hiring of a Japanese investment consultant as a member of Japan Desk Long An.

Thank you very much!

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