After 15 years of construction and development, industrial zones in Ba Ria - Vung Tau province have obtained very encouraging initial achievements and significantly helped improve investment efficiency in the province, especially FDI attraction. Mr Nguyen Anh Triet, Director of Ba Ria - Vung Tau Industrial Zones Authority (BIZA), said: “During 15 years of developing industrial zones, BIZA has flexibly applied State guidelines, policies and laws and utilised favourable local conditions to speed up investment into industrial zones to increase their contributions to local growth, and accelerate economic restructuring process towards industrialisation and modernisation." Minh Kiet reports.
Could you talk more about the successes that industrial zones in the province have achieved in the past 15 years?
The root of the success of investment attraction in Ba Ria - Vung Tau province is Phu My I Industrial Zone where the Government-backed gas - electricity - fertiliser programme was implemented. The success in investment attraction of this industrial zone created a stepping stone for the success of other industrial zones in the province. To date, some big well-reputed corporations have chosen Ba Ria - Vung Tau province as their investment destinations, including Posco Steel Group, Bunge, Thoresen Vinama Logistics, CS Wind, Interflour, China Steel and Formosa. In the past years, also powered by the province’s investment promotion programmes, its industrial zones have lured more and more tenants to create modern labour-extensive and environment-friendly industries. Investment projects in industrial zones are engaged in different sectors at different scales and with different technologies.
Initially, Ba Ria - Vung Tau province was approved to build nine industrial zones. But, to meet development requirements, it was allowed to develop five more, bringing the total industrial zones to 14, covering a total area of 8,210.27 ha. To date, industrial zones in the province are housing 256 projects with a total registered capital of US$12.343 billion, including 128 domestic investment projects with VND45,527.83 billion (over US$2 billion)and US$1.508 billion, and 128 FDI projects with an investment of US$7.99 billion. The leased area has reached 1,832.73 ha, or 33.43 percent of rentable area of all industrial zones and 65.74 percent of the area of operational ones. Tenants generated VND53,700 billion (US$2.44 billion) of industrial production, paid VND6,615 billion (US$315 million) and employed 43,159 workers in 2014.
The authority will focus on attracting foreign direct investment (FDI) to lease out rentable areas in industrial zones, focus on building social security projects for workers, and protect the environment.
How have the renovation and transfer of technology and advanced management, as well as economic restructuring in industrial zones, changed?
Currently, the renovation and transfer of technology and advanced management had been stepped up at Phu My Fertiliser Plant and Phu My Power Plant from 2007 to 2014. However, workers need time to operate new technologies.
How has Ba Ria - Vung Tau province focused on building and completing infrastructure systems in industrial and economic zones?
Infrastructure construction investment in industrial zones is based on detailed plans approved by the Provincial People's Committee to ensure uninterrupted and smooth connectivity inside and outside industrial zones, thereby helping develop province-wide comprehensive infrastructure system and give a facelift to urban development.
Ba Ria - Vung Tau province has concentrated on building infrastructure works outside industrial zones to connect with infrastructure works inside industrial zones. Industrial zone developers have invested in key traffic works and gradually built other infrastructure for their industrial zones where there are tenants so as to ensure the working of their investment capital. The Ba Ria - Vung Tau Industrial Zones Authority regularly inspects and supervises infrastructure development to make sure that this work is in line with development plans.
Would you mind talking about competitive advantages of Ba Ria - Vung Tau province-based industrial zones? How has the province effectively utilised these advantages?
What makes us most gratified about industrial zones construction and development process is we base on our locally unique advantages to attract FDI. We only give priority to high-quality projects while turning down environment-polluting, manual labour-intensive projects. As a result, modern technologies have helped reduce environmental pollution in industrial zones, especially the Thi Vai River basin where pollution has gradually managed and kept in check. The province advocates projects not employing many workers because of its limited labour supply.
Currently, most IPs in the province lie near to large rivers where goods are conveniently transported by river. For example, Dong Xuyen Industrial Zone based in Vung Tau City is near to the Dinh River which can support ships of 10,000 tonnes. Industrial zones in Tan Thanh District are adjacent to the Thi Vai River which can accommodate ships of 30,000 - 100,000 tonnes. The port advantage gives a plus to the province in drawing big industrial projects. The Prime Minister issued Decision 791/QD -TTg dated August 12, 2005 on detailed plans for development of seaports in HCM City, Dong Nai and Ba Ria - Vung Tau. Many big projects have chosen industrial zones in Ba Ria - Vung Tau on its favourable port system.
Would you talk about investment attraction strategies for industrial zones in the province?
In the coming time, the Ba Ria - Vung Tau Industrial Zones Authority will continue to apply measures to attract FDI capital; enhance investment promotion in key areas; approach potential high-tech investors registering to invest in supporting industries, use environment-friendly technologies and using a small workforce. In the near term, the province will attract investment capital for the development of logistics services and supporting industries which are the strong points of Japanese investors. The province gives priority to big projects invested by multinational corporations which have strong effects on local industries. Specially, the province has also focused on building and proposing the Government, the Ministry of Planning and Investment and relevant bodies to add Da Bac Industrial Zone into the Vietnam Industrial Zones Development Plan and turn this Industrial Zone and Phu My 3 Industrial Zone into Japan-exclusive destinations.
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