Tra Vinh province received the Prime Minister’s permits for setting up one economic zone and three large-scaled industrial parks. The high effectiveness of investment attraction and business and production activities in industrial parks and economic zones has helped speed up economic restructuring and employment for local labourers and accelerate the process of industrialisation and modernisation. Vietnam Business Forum interviewed Mr Le Tan Luc, Head of Tra Vinh Economic Zones Authority. Song Kiet reports.
Could you briefly introduce outstanding achievements in investment attraction in Tra Vinh province-based economic zones and industrial parks in recent years?
Tra Vinh province has Dinh An Economic Zone (39,020 ha) and three industrial parks, namely Long Duc (100 ha), Cau Quan (120 ha) and Co Chien (200 ha).
Long Duc Industrial Park is now housing 25 investment projects with a total registered capital of VND3,790.2 billion, which are leasing some 80 percent of rentable area. As of November 2013, investors disbursed VND884.59 billion for their projects, accounting for 23.34 percent of their registered capital. The mainly invested in high-tech, industrial park infrastructure development, and labour-intensive industries like garment, textile and food processing.
The Provincial People's Committee approved in principle the construction of Co Chien Industrial Park and competent units are drawing 1:500 scale map. A South Korean investor has registered to invest in infrastructure construction and operation. Co Chien Industrial Park is now calling for infrastructure developers
Dinh An Economic Zone (15,403.7 ha in Phase 1) has this year granted one investment certificate to one project valued at VND30 billion. Until now, the economic zone has attracted 25 investment projects, of which 13 projects have received investment certificates with a total registered capital of VND90,122 billion and rented 2,366 ha of land. Four projects are invested by State-owned Electricity of Vietnam Group (EVN). These key projects will serve as development engines of the province when they enter into operation in late 2015. The Vietnam Maritime Administration (Vinamarine) is preparing to start on a passageway project for big ships entering the Hau River. The economic zone also approved in principle 12 other projects.
How have investors in economic and industrial zones played their roles in local economic development in recent years?
Currently, Long Duc Industrial Park has 16 operational projects. This year, three projects went into operation, thus helping increase industrial production value by 29.21 percent, revenue by 43.56 percent and export turnover by 32.04 percent this year. Operational projects are now employing 4,009 workers. In 2013, projects in Long Duc Industrial Park paid approximately VND18.96 billion to the State Budget, up 11.27 percent over 2012.
At present, only the Dinh An Economic Zone has projects invested by EVN Group. These projects were estimated to pay VND482.25 billion to the State Budget and generated 3,858 jobs.
Would you talk more about infrastructure system in industrial parks, investment environment and investment opportunities in economic and industrial zones in Tra Vinh province?
Long Duc Industrial Park has completed its infrastructure systems like electricity, water, telecommunication services. Especially in early 2014, the wastewater treatment plant with a daily capacity of 2,000 cubic metres will go into operation.
Particularly, in Dinh An Economic Zone, apart from Government-backed key projects underway, the economic and technical infrastructure has not been built. As a result, the economic zone is facing a lot of difficulty in drawing big projects using advanced technologies and having high investment value. Foreign investors still shun the economic zone.
Without doubt, Tra Vinh province has achieved good results in investment attraction into economic and industrial zones thanks to the close coordination and cooperation of relevant agencies to apply investment incentive and encouragement policies; to the structural coherence in synchronous technical, economic and social infrastructure construction in economic and industrial zones; to publicity of processes, procedures and investment projects; to the effective application of one-stop source mechanism aimed to reduce the time and expense for enterprises. Besides, we always support enterprises to recruit and train employees and provide the most favourable conditions for enterprises to develop stably and effectively.
Currently, to improve investment attraction and enhance the development of economic and industrial zones, the province is building and completing mechanisms to encourage infrastructure investment in economic and industrial zones.
What are the differences and treatments for investors when they invest in economic and industrial zones in the province?
Tra Vinh has a plenty of potentials and advantages in land, labour and especially centrally invested projects like Duyen Hai thermal power centre; passageways for heavy ships to enter the Hau River; upgraded and expanded National Roads 53, 54 and 60; Co Chien Bridge and future Dai Ngai Bridge; Dinh An Economic Zone and three industrial parks, namely Long Duc, Cau Quan and Co Chien. Although the industry of Tra Vinh province was formulated and developed later than other provinces in the region and its economic and industrial zones were set up later than those in other localities; the province has certain advantages such as abundant labour resources, land fund for industrial, agricultural and service development. The province has also learned a lot of experience from industrial park development in other localities. Notably, the land rent in economic and industrial zones in Tra Vinh province is lower than other localities, currently standing at VND2.8 million a year.
Apart from abundant labour supply, investors in economic and industrial zones in Tra Vinh province are also supported to train employees. Specifically, the company will be granted VND100,000 for a newly recruited worker a month for training and the funding is three months for each worker at most. A company may receive up to VND100 million for labourer training.
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