Nam Dinh Industrial Parks Authority Enhances Investment Attraction

2:18:58 PM | 4/15/2020

“For Nam Dinh province, investing and developing industrial parks has been defined as a very important task in recent years and initially met business and manufacturing requirements of tenants,” said Mr. Tran Minh Hoan, Director of the Nam Dinh Industrial Parks Authority, in an interview given to Vietnam Business Forum. Ngo Ha reports.

Could you tell us about your development and investment attraction to date?

After more than 15 years of development, Nam Dinh now has nine industrial parks, covering 2,082 ha, approved to be added to the Vietnam Industrial Park Development Plan by the Prime Minister. Four industrial parks were established, namely Hoa Xa, Bao Minh, My Trung and AURORA Textile Industrial Park, covering a total of 1,110.15 ha. My Thuan Industrial Park is waiting for the Prime Minister's decision.

Specifically, 285.37-ha Hoa Xa Industrial Park, established in 2003, cost VND472.3 billion of investment capital, funded by the State budget. Up to now, the basic infrastructure system has been completed, with a wastewater treatment system having a daily capacity of 4,500 cubic meters. The occupancy rate has reached 100%.

The 154.5-ha Bao Minh Industrial Park, founded in 2007, has basically completed a modern, synchronous infrastructure system, including internal traffic, water supply, power grid, drainage and worker housing facilities. So far, the infrastructure investment fund has reached VND907 billion (from the private sector), equal to 113% of the registered capital. Additionally, the park has spent VND119 billion on worker accommodation and social housing facilities.

For My Trung Industrial Park, in 2019, the Nam Dinh Industrial Parks Authority collaborated with relevant departments and units to further consult the Provincial People’s Committee and central authorities on the plan to deal with the park. The Ministry of Transport issued Document 9471/BGTVT-QLDN dated October 7, 2019, proposing the Prime Minister allow VFC to recover and auction assets under the law. The Nam Dinh Industrial Parks Authority also reported to the Provincial People’s Committee on VFC’s handling plan of My Trung Industrial Park.

To serve businesses and workers in the industrial park smoothly and safely, the Provincial People’s Committee has assigned the authority to invest in building roads leading to My Trung Industrial Park, using the State budget. Up to now, the road construction (Phase I) has been carried out as scheduled and is expected to open for traffic soon.

Particularly for AURORA Textile Industrial Park, commenced in 2017, the investor has leveled and constructed about 150 ha and built transport, rainwater drainage and lighting infrastructure and green spaces. So far, the total disbursed investment value reached VND1,000 billion (reaching 38% of the first phase investment fund). Joyful Wonder Limited has registered to invest US$203 million into the park while many other investors have signed in principle contracts to invest in building factories here. This is a very positive signal to draw investment, especially from FDI capital for the local socioeconomic development.

In 2019, local industrial parks drew 13 new projects with a total registered capital of about VND180.58 billion (US$7.5 million) and US$208.68 million and allowed 35 projects to adjust their investment value, including three adding VND702.78 billion of investment capital.

In total, in 2019, the registered investment fund aggregated VND883.36 billion and US$208.68 million (equivalent to US$247 million in combination), up 118% over 2018 and 66% higher than the plan set for 2019.

How has the province improved investment flows into industrial parks?

In the past time, the Provincial People's Committee has requested relevant agencies review administrative procedures to create a favorable and transparent investment environment. It has promptly issued investment regulations to accelerate administrative reform at administrative agencies, speed up project progress, timely solve hardships against investors, and terminate idle projects.

In addition to solutions launched by the Provincial People’s Committee, for its part, the Nam Dinh Industrial Parks Authority has also adopted specific solutions for better investment attraction and business development support. The authority has reviewed and simplified administrative procedures; proactively facilitated enterprises to obtain investment registration certificates and carry out administrative procedures after obtaining investment registration certificates.

The authority has worked together with tenants to deal with their emerging hardships to win trust in the local investment environment and court others to locate projects in the province.

Would you tell us your development and investment objectives in 2020?

To further achieve more positive results and effectively develop local industrial parks, the Nam Dinh Industrial Parks Authority has advised the Provincial People’s Committee on strategic goals and directions to develop and attract investors into its industrial parks, focusing on the following basics:

First, further simplifying administrative procedures to reduce the required time to handle them; transparently disclosing information, researching the launch of online administrative procedures of Level 3 and Level 4 in order to facilitate investors, enterprises and people.

Second, promoting the responsibility of public employees towards public service ethics to better serve investors, prohibiting any harassment toward investors.

Third, completing the unfinished infrastructure system in My Trung Industrial Park, further urging the developer of AURORA Textile Industrial Park to accelerate infrastructure construction.

Fourth, advising the Provincial People’s Committee to build My Thuan Industrial Park, which has a very convenient access to traffic network, has a great opportunity to draw potential investors with large-scale modern projects.

In 2020, local industrial parks target to draw around US$200 million of new investment capital, generate industrial production value of VND25,570 billion (16.5% more than in 2019), obtain the export value of US$870 million (up 17.5%), generate 1,500 - 2,500 new jobs, and pay VND470 billion to the State coffers (up 17%).

Source: Vietnam Business Forum