Industrial Park - Economic Zone Development Drives the Nation Forward

In 2010, Vietnam licensed 27 IP infrastructure development projects, established 23 IPs with a combined area of 5,410.5 ha, and expanded 4 IPs by 429 ha. The added IP area in 2010 was 5,839.5 ha. The total registered capital of 27 IP infrastructure development projects was around VND8,000 billion. To date, Vietnam has established 260 industrial parks (IPs) covering a total area of 71,394 ha, of which over 45,854 ha have been leased, accounting for about 65 percent of total area. 173 IPs with a total area of 43,718 ha have gone into operation and 88 IPs with a total area of 27,405 ha are in the process of land compensation, site clearance and basic construction.

 

 

In 2010, the Prime Minister decided to establish and issue operating regulations for Nam Can Economic Zone (Ca Mau province), bringing the total EZs in the country to 15. The established economic zones include two in the Red River Delta region (Van Don EZ in Quang Ninh province and Dinh Vu - Cat Hai EZ in Hai Phong City); 10 in the central coastal region (Nghi Son EZ in Thanh Hoa province, Southeast Nghe An EZ in Nghe An province, Vung Ang EZ in Ha Tinh province, Dong Nam EZ in Quang Tri province, Chan May - Lang Co EZ in Thua Thien - Hue province, Chu Lai EZ in Quang Nam province, Dung Quat EZ in Quang Ngai province, Nhon Hoi EZ in Binh Dinh province , Van Phong EZ in Khanh Hoa province, Hon La EZ in Quang Binh province and Nam Phu Yen EZ in Phu Yen province); and three in the Mekong Delta region (Phu Quoc - South An Thoi Islands EZ in Kien Giang province, Dinh An EZ Tra Vinh province, and Nam Can EZ in Ca Mau province). The total land and water surface area of established EZs is 662,249 ha.

 

In 2010, the Prime Minister decided to add two economic zones, namely Southeast Quang Tri EZ in Quang Tri province and Thai Binh EZ in Thai Binh province, to the Vietnam Economic Zone Development Plan to 2020, under Decision 1353/QD-TTg dated September 23, 2008, bringing the total EZs to 17 with a total area of 716,603 ha.

 

In 2010, IPs across the nation licensed 230 fresh foreign-invested projects with total registered capital of US$3,591.6 million and allowed 212 existing projects to supplement US$1,714 million. The South-eastern region led the country in attracting foreign investment capital into IPs, with US$$2,896.3 million in 2010, accounting for 55 percent of the total.

 

By the end of December 2010, IPs in the country housed 3,962 foreign-invested projects with a combined registered capital of US$53,588 million, of which they already disbursed US$17,055 million, or 32 percent of the total registered value. Currently, as many as 3,053 projects have gone into operation and 274 are underway.

 

In 2010, IPs in the country housed 357 fresh projects with an aggregate registered capital of VND50,013.43 billion and allowed 95 existing projects to add VND7,665.55 billion, totalling over VND55,175.1 billion.

By the end of December 2010, Vietnam’s IPs attracted 4,377 domestic investment projects worth nearly VND336,078 billion, of which VND135,950 billion was disbursed, accounting for 40.5 percent of the registered value.

 

In 2010, the coastal EZs attracted more than 30 FDI projects. Both new and existing foreign-led projects registered to invest nearly US$2 billion. Vietnamese investors were granted licenses for more than 80 projects worth nearly VND20,000 billion in EZs. EZs in the country have housed nearly 700 domestic and foreign projects valued at nearly US$33 billion and VND330,000 billion. Particularly, some large-scale and important projects are located in Nghi Son, Vung Ang and Dung Quat EZs, including the first oil refinery, the second oil refinery, Dung Quat shipyard, Quang Lien steel mill, Son Duong steel mill and deepwater seaport complex, Doosan heavy engineering factory, Nghi Son and Vung Ang thermal power plants, and Van Phong international transit terminal.

 

 

In 2011, Vietnam is expected to set up 15 new industrial parks with a total estimated area of 3,000 - 3,500 ha.

 

In 2011, international and domestic economies are forecast to maintain recovery momentum and FDI flows are expected to be more active. Thus, Vietnamese IPs are projected to draw about US$4.5 - 5 billion of FDI capital and VND18,000 - 20,000 billion in the year. By the end of 2011, IPs in the country will house 8,900 projects, including 4,100 FDI projects and 4,800 domestic projects, with an aggregate investment capital of US$56 - 58 billion and VND400,000 billion.

 

Production and business indicators of IP-based companies are expected to increase 5 - 8 percent in 2011. Their combined revenues (both domestic and foreign-invested projects) will reach US$32-34 billion; their export turnover will climb to US$19-21 billion and their import value will top US$18-20 billion. They will pay about US$1.6 billion to the State Budget and attract 1.6 - 1.8 million workers.

 

The Ministry of Planning and Investment has submitted to the Prime Minister proposals to add Ninh Co EZ of Nam Dinh province, Ganh Hao EZ of Bac Lieu province and Tran De EZ of Soc Trang province to the Vietnam EZ Development Plan. Thus, the country may have three new EZs in 2011. The establishment of EZs must satisfy required conditions.