Efforts to Draw Investment Capital in Industrial Zones

 

According to the Dak Lak Industrial Zone Development Strategy to 2020, with a vision to 2030, Dak Lak will have five large-scaled industrial parks, including Hoa Phu (approved for establishment by the Government in 2007), Hoa Phu 1 (​​150 ha), Hoa Phu 2 (​​100 ha), Ea H'leo (195 ha), and M'Drak (160 ha).

 

Regarding the industrial zone planning and development, the People’s Committee of Dak Lak province issued Official Document No. 4808/UBND-CN dated September 22, 2011 on adjustments and supplements to the overall industrial zone development scheme and assigned the Dak Lak Industrial Zones Authority to work out the detailed planning for 150-ha Hoa Phu Industrial Park 1, nearly Hoa Phu Industrial Park in the east;

 

Thus, to date, Dak Lak province established Hoa Phu Industrial Park, covering ​​182 ha. The investor compensated and cleared 165.5 ha and built traffic roads, power lines and wastewater treatment plant.

 

Hoa Phu Industrial Park attracted 30 projects by the end of 2014. In 2014 alone, it drew 13 projects capitalised at over VND283 billion, compared with two projects 2013. Tenants rented 91 ha, or approximately 72.34 percent of the total area of 126 ha.

 

The total industrial production value of tenants was estimated at VND1,487 billion in 2014, up 1.7 percent over 2013. Their revenue reached VND1,402 billion, up 6.4 percent against 2013. They paid more than VND8.7 billion to the State Budget and earned over US$1 million from exports. Tenants in Hoa Phu Industrial Park have maintained stable operations, revenue, tax payment and increasing employment.

 

Dak Lak province is bordered by Gia Lai province in the north, Phu Yen province in the east, Lam Dong and Dak Nong in the south and Cambodia in the west. Hoa Phu Industrial Park is located near the centre of Buon Ma Thuot City, about 14 km from Buon Ma Thuot to the south (along National Highway 14), 30 km from Buon Ma Thuot Airport, 350 km from Ho Chi Minh City, and near the Serepok River. With its very convenient location, enterprises will have very favourable conditions for boosting business exchange between Dak Lak and other surrounding provinces.

 

The abundant labour source meets the demand of businesses. Dak Lak is the largest producer of coffee and pepper in the country. This is a good source of materials for export processing.

 

Besides, Dak Lak province is pushing up administrative reform and other policies to enhance its appeal to investors.

 

In addition to preference policies provided by the government of Vietnam, Dak Lak province issued Resolution No. 27/2011/NQ-HDND dated December 22, 2011 on investment encouragement and support in Dak Lak province in the 2012-2015 period. Accordingly, investors are subsidised 50 percent of interest for tenants in industrial zones when they borrow from the Dak Lak Development Investment Fund. Infrastructure rent is as low as VND5,500 per square metre a year, land rent is VND60 per square metre (free later), and wastewater treatment is VND6,000 per cubic metre. Investment procedures are simple and quick.

 

Dak Lak is a remote mountainous province, distant from seaports, where goods are transported by road. Meanwhile, infrastructure remains poor. Therefore, we propose the Government to allow special policies for infrastructure investment in industrial zones.

 

Recently, foreign investment capital flows into Vietnam are on the rise, especially from Japan. A Japanese investor is preparing to build a US$100-million bio-ethanol plant with a daily capacity of 300,000 litres refined from cassava in Hoa Phu Industrial Park.

 

In 2015 and beyond, we will have specific investment promotion plans for specific periods. The Dak Lak Industrial Zones Authority will send investment promotion missions to target markets and introduce potential fields to investors like agricultural processing, animal feed processing, bottled drink, rubber and plastic processing.