Industrial Parks: Motivation of Industrialisation – Modernisation Process

4:59:43 PM | 10/31/2013

In recent years, despite the difficulties and challenges, industrial parks (IPs) in the province of Dak Nong still operate effectively, contributing to economic development and addressing local social security issues.


Specifically, from 2004 to 2013, there have been 95 registered invesment projects in Tam Thang IP, of which 50 projects were licensed to invest in the IP. Until now, Tam Thang IP has 30 valid investment projects with a total registered investment capital of VND 2232.9 billion, including 25 operating projects and 5 projects under construction. The attraction of 25 projects in operation and production into Tam Thang IP has brought tremendous efficiency, contributing to socio-economic development of the province towards industrialisation and modernisation. By September 2013, businesses in Tam Thang IP have invested VND 1137.8 billion to implement investment projects, contributing additional capital in socio-economic development of the province. Businesses operating in Tam Thang IP have created employment for over 1,500 workers with an average income of about VND 3.8 million/person/month, thus contributing to the economic restructuring of the province and increasing supplying goods and services to meet the needs of domestic as well as export and accelerating urbanization, promoting the development of services to meet the needs of businesses in the IP.


Mr Pham Van Hoa - Vice Head of the IP Management Board said that besides Tam Thang IP, IP Nhan Co (Nhan Co commune, Dak R’lap district) was also added to the IPs development plan in Vietnam in 2015 and towards 2020 by the Prime Minister, under the Decision 1107/2006/QD-TTg dated 21 August 2006. Currently, the Management Board of IPs cooperates with the function agencies to urge businesses and investors to invest in IP infrastructure make dossiers submitted to the Provincial People’s Committee to establish IP in accordance with Decree No. 29/2008/ND-CP dated 14 March 2008 of the Government on IPs, export processing zones and economic zones.


Dak Nong people’s committee also submits documents to the Prime Minister to additionally approve Quang Duc Industrial Park (area of 200 ha) in Dak Ru commune, Dak Lap district in the master plan to develop IPs in Vietnam by 2020. It is expected that by 2020, the province of Dak Nong will have formed three modern IPs including Tam Thang IP, Nhan Co IP and Quang Duc IP (total area of ​​approximately 500 ha), which play the role of motivation for socio-economic development and creating an opportunity to attract more investors to the province.


According to Mr Hoa, despite reaping the initial success, in general, in the recent times, attracting investment in the province’s IPs did not achieve high results. The number of implemented projects over the registered projects is at low rates. Investment projects in IPs have small scale, investment rate per unit area is low, implemented capital only accounts for 50.9 percent of the registered capital. The IPs have not yet attracted many agro- forestry projects which are the strength of the province and did not call for the economic sectors to invest in building and trade in IP infrastructure...


To improve the situation and contribute to boost investment in Dak Nong IP, in the next time, Mr Hoa said that the planning of IPs construction in the province must be associated with exploitation, taking advantage of potential and strengths of the province in production and processing of agricultural and forestry products, industrial and mining industries and support services for the mining industry (bauxite mining and aluminum refine). The province has to promote the development of socio-economic infrastructure associated with enhancing administrative procedures reforms to support and create favourable conditions for businesses and investors in the process of implementing investment projects and production-business in the IPs.


Mr Hoa said that the important issue is that the province have to pay interest in planning and development of the concentrated material area (especially coffee, cashew, sugarcane, wood, cassava, cotton seed...) by forming close linkages between “four units” to meet the needs of the enterprises in the IPs, avoiding shortages or excess material to have negative impact on people and businesses. Along with measures to attract foreign investment towards selecting large projects with modern technology, attracting more labor and less impact on the ecological environment, the province also focuses on improving the quality of vocational training associated with the needs of businesses in the IPs and creating jobs for workers.

 Kien Trung