IPs and EZs: Rebound for Industrialisation-Modernisation

 

Located in the key economic southern region, Binh Phuoc province has a 240km border with Cambodia, is the gateway and bridge of the region with the Highlands region and Cambodia. Binh Phuoc is less affected by the disaster. It has rubber materials, wood, rich agricultural products which are the main raw material for the manufacturing and processing. The province also has abundant labour resources. Besides the advantages of the province, the IPs and EZs in the province are formed mainly from public land so compensation cost and rent land cost are lower than in other provinces in the key economic southern region. The infrastructure is good so investment cost is low.

Promoting the potential of existing advantages, investment attraction in the IPs and EZs in Binh Phuoc continues to prosper. Specifically in the first 2 months of 2016, EZ's Management Board has granted investment certificates for six investment projects in IPs with a total registered investment capital of US$ 8.8 million and VND2,280 billion with rent land area of 20,48ha. Until now, it has 144 investment projects in IPs with a total registered investment capital of US$ 1034.95 million and VND3474.3 billion with rent land area of 588,31 ha. Particularly in Hoa Lu Border Gate EZ, there are 21 projects granted investment certificates with a total investment capital of VND778.14 billion and US$ 2 million, and rent land area of 170,42.

 

Mr Nguyen Van Dung, Head of the EZ Management Board of the province, said the formation and development of IPs and EZs not only contributed significantly to increasing the value of industrial production, promoting economic restructuring, increasing exports and generating revenues for local budgets, but also is an important channel for technology acquisition, better management levels and advanced industrial labour behaviour. Previously, the projects attracted mainly small- and medium-scale projects, the recent small IPs in Binh Phuoc province have attracted a number of projects with large investments such as the project of MDF VRG DONGWHA company, Long Fa company and Freewell Vietnam. These projects are imported modern machinery and equipment, minimizing environmental pollution, and this is also the tendency to attract investment that the IPs in the province are looking forward to.

 

In order to improve the efficiency of investment, Binh Phuoc Provincial People's Committee issued Decision 01/2016/QD-Committee dated January 7^th 2016 prescribed policies and incentives to encourage investment in the province. Accordingly, the PPC is fully committed to implementing the investment incentives with the highest preferential level prescribed by law. In addition to the general investment incentives, the PPC also provides investment incentives in the province, such as infrastructure investments essential to outside the IPs, EZs; preferential land rent; preferential advertising costs; and supporting training of human resources.

 

Particularly for Hoa Lu border gate EZ, because there are no infrastructure investment businesses, the attraction of investment in EZs faces many difficulties. To create conditions to attract investment and promote EZs, besides the general policy, EZ's Management Board has advised the province on the planning of non-tariff commercial and industrial zone (400ha), and at the same time raising funds from central, collecting funds from land rent and land use fees of investors, to reinvest in infrastructure EZs as prescribed; in which focused on implementing the construction of the entire core infrastructure of around 1.700ha to attract investment.

 

EZ's Management Board in collaboration with the Centre for Investment Promotion, Trade & Tourism and infrastructure investment companies to organize investment promotion activities in place through active dialogue with investors in order to support the timely removal of obstacles in the investment business activities of enterprises.