Ready for New Investment Waves

Dong Nai province now has 30 industrial zones established with a total area of 9,573.77 ha. Operational industrial zones in the province account for 10 percent of the country’s total number of industrial zones and 12 percent of area. The province has constantly taken the lead in industrial zone development in the country. Over the past 20 years, Dong Nai province-based industrial zones have significantly contributed to local social, cultural and economic development, making Dong Nai a top locality in Vietnam in terms of industrial and economic development. The first achievement is that the development of industrial zones actively maintains high economic growth in the province. Industrial zones currently account for more than 80 percent of industrial production value, 65 percent of export turnover, and over 40 percent of the province’s total tax revenues. Industrial zones strongly attract FDI capital flows. More than 80 percent of FDI enterprises in Dong Nai province are in industrial zones. Industrial zones are gradually realising the government’s economic goals when it approved industrial park establishment: Attracting foreign investment, creating jobs, acquiring advanced technologies and management experience, boosting export capacity, increasing export revenues, and driving up local economic development towards industrialisation and modernisation.

 

Over the past 20 years, FDI capital attraction into industrial zones is stable. The amount of FDI capital increases year after year although the growth rates vary. By the end of 2010, 30 industrial zones in Dong Nai housed 1,129 investment projects from 35 countries and territories, of which 820 projects worth US$13.016 billion are foreign invested and 309 projects valued at VND31,625.41 billion (over US$1.5 billion) are domestically invested. The value of capital disbursed reached US$7,298 million, or 58 percent of total registered capital. FDI companies have developed many new industries and made significant progress in technological and management levels. Many world-leading corporations chose Dong Nai province to locate their investment facilities, including Pouchen, Phong Thai Group Joint Stock Company, Formosa, Fujitsu, Philips, Ajinomoto, Zamil Steel, Shell and Syngenta. In the first nine months of 2011, the Dong Nai Industrial Zone Authority granted investment certificates to 25 new projects with total registered investment capital of US$140.12 million and foreign investors disbursed US$315.4 million in the nine months of the year. Foreign-led companies earned total revenues of US$7,270.88 million in the nine-month period. Previously, foreign investors usually used labour-intensive technologies, but they have gradually shifted to use more modern, automated ones when they feel secure in the investment environment.

 

Currently, industrial zones in Dong Nai have gradually shifted to attract high-tech, clean and environment-friendly projects. Export turnover increased from US$3,338 million in the 1995 - 2000 phase to more than US$21,431 million in the 2006 - 2010 stage. Imports increased from US$3,789 million to US$25,467 million and tax payments climbed from US$185 million to US$1,312 million in respective periods. Industrial zones created jobs for 377,967 workers from all over the country.

 

To catch the new wave of investment, Dong Nai is building a collective brand for industrial zones, making it a common property of industrial park infrastructure developers and creating an identity in the eyes of investors. Accordingly, industrial zones in the province are preparing necessary conditions for technical infrastructure development investment, social infrastructure development, high-quality human resource training. The province is also reforming administrative procedures, increasing support to investors, and making Dong Nai province the most favoured destination for investors.