Improving Investment Capital Flow Quality in Industrial Parks

Despite the adverse effects of the COVID-19 pandemic, industrial zones in Tien Giang province still attracted investors to invest and expand production. Increased investment attraction and improved capital flow quality into industrial zones continued to be prioritized by the province, with priority given to projects using environmentally friendly advanced technologies, in a bid to achieve sustainable development.

Tan Huong Industrial Park 

Wooing investors with its own advantages

Conveniently located at the gateway to the Mekong River Delta from Ho Chi Minh City and the Southeast region, Tien Giang province has all the competitive potential and advantages to draw investment capital for economic development.

The province has a well-developed and convenient road and waterway transportation system, powered by such arterial routes as Ho Chi Minh City - Trung Luong Expressway, Trung Luong - My Thuan Highway, National Highways (1, 30, 50 and 60), Tien River, Soai Rap River and Cho Gao Canal. Besides the big plus point of My Tho Port capable of receiving ships of 3,000 tons, the infrastructure system is synchronously invested and the industrial zone infrastructure is always ready for service to investors.

In terms of regional, inter-regional and national development value chains, Tien Giang is one of the largest food producers in the country. Moreover, it has abundant human resources, with over 1.13 million people of working age.

Tien Giang was approved to build seven industrial parks with a total area of 2,083.43 ha by the Prime Minister. Four industrial parks (My Tho, Tan Huong, Long Jiang and Soai Rap Petroleum Services), covering 1,101.47ha or 52.87% of the total approved area, are in operation. Currently, the Ministry of Planning and Investment is appraising investment procedures for Binh Dong, Tan Phuoc 1, and Tan Phuoc 2 industrial zones, which will be then submitted to the Government for decision. In the coming time, the industrial land fund will be expanded to serve investors seeking to locate their projects in the province.

In the first six months of 2022, the Tien Giang Industrial Zones Authority granted investment registration certificates to three FDI projects with a combined registered investment capital of US$23.3 million and allowed 13 existing projects to add US$33 million to their investment base. As of June 2022, local industrial parks housed 106 projects, including 79 FDI projects, with a total investment capital of US$2,255.3 million (foreign direct investment - FDI) and VND4,545.86 billion (domestic direct investment - DDI). They leased 520.86 ha out of 767.20 ha of rentable area, or 67.89% of the industrial land for lease.

Tenants in industrial parks have helped boost industrial production value (accounting for nearly 70% of the province’s total), made up a large share of export value, and paid a handsome amount of tax to the local budget.

In addition, enterprises employ nearly 95,000 workers, paid VND7.5 million a month on average.

Increased support

Nguyen Nhat Truong, Director of Tien Giang Industrial Zones Authority, said, in 2022, local industrial zones are expected to attract seven new projects and US$261 million of investment capital (new projects and existing projects).

To fill the area and improve capital flow quality, the Tien Giang Industrial Zones Authority will enhance its management, select investors with projects of high quality, high added value and environmentally friendly technology. At the same time, it will opt for partners and investors with long-term investment commitments to the locality; apply strategies and approaches to expand markets and help increase State budget revenue; and promote economic restructuring and employment for local workers.

To better assist and support investors, the authority will continue to apply consistent solutions like disclosing information on construction planning and investment attraction; focus on policies on land, housing and business registration; facilitate every business to deal with investment procedures; and optimize project reception and management.

The authority will accelerate administrative reforms, develop and implement regulations on interagency cooperation in handling procedures related to enterprises and investors. Applying information technology to reduce the time and publicize information on the province's online public service website ensures smooth, simple and fast procedures, thus improving the Provincial Competitiveness Index (PCI) and creating an equal and convenient environment for investors and businesses.

At the same time, the agency will step up investment attraction and promotion (focused on locally face-to-face investment promotion); actively connect, contact and work with potential investors and large corporations seeking to explore the business investment environment in industrial zones; and speed up completion of technical infrastructure in industrial zones that are established/granted investment certificates to provide space for new projects. It will strengthen the review of projects to have solutions to remove emerging difficulties and obstacles to speed up investment progress, especially site clearance; and work with businesses on a quarterly, 6-monthly and yearly basis to promptly assist them in solving difficulties.

“These activities show constant care and companionship of local authorities to businesses; and indirectly promote and introduce the Tien Giang investment environment,” said Mr. Nguyen Nhat Truong, Director of Tien Giang Industrial Zones Authority.

Hoai Nam (Vietnam Business Forum)