Authority of Industrial Parks in Hoa Binh:15 Years of Facilitating Local Economic Development

3:34:43 PM | 1/3/2023

In the socio-economic development strategy of Hoa Binh province, industry is considered a key economic sector. Talking about the industrial development of Hoa Binh, it is impossible not to mention the important role of industrial parks (IPs) in the province. Over 15 years of development, the Authority of Industrial Parks in Hoa Binh has gradually stabilized the state management of IPs in the area, and promoted investment attraction and industrial development in the province.

Mr. Chu Van Thang, Head of Management Board of Hoa Binh Industrial Parks

IPs make great contributions to socio-economic development

The 15-year long journey of development of the Authority of Hoa Binh Industrial Parks is associated with the construction and development of IPs in the province. As a state management agency on IPs, the Authority always upholds the sense of responsibility, effectively performing the task of advising provincial leaders to sufficiently direct the management and development of IPs. So far IPs have played a pivotal role in the province's economy, making important contributions to socio-economic development.

In 2007, Hoa Binh province had only 02 zones of industrial production facilities in Hoa Binh city and Luong Son district with a total planning area of 157.2ha, in which the technical infrastructure system was not invested. Now, the province has 08 IPs with a total planning area of 1,507.43ha; in which 02 IPs have been synchronously invested in technical infrastructure; many IPs have good occupancy rate (100% of Luong Son IP; 91.53% of Left Bank of Da River IP; 60.08% of South Luong Son IP,); the rate of IPs with infrastructure investors reaches 50%. The percentage of operating IPs with centralized wastewater treatment systems meeting environmental standards is 60%. Along with that, IPs have attracted 105 domestic and foreign investment projects, including 25 FDI projects with a total registered capital of nearly US$518 million (accounting for 83.5% of registered FDI capital in the province) and 78 DDI projects with a total registered capital of over VND 13,574 billion.

Since coming into operation, Hoa Binh IPs have made great contributions to the socio-economic development of Hoa Binh province. In particular, they have contributed to exploiting and improving the efficiency of using resources in the province; fundamentally changed Hoa Binh's GDP structure in the direction of sharply increasing the proportion of industry - services, and made an important contribution to increasing budget revenue and creating jobs for local workers. Accumulated up to now, there are about 21,000 employees working for enterprises in Hoa Binh IPs, local workers account for about 80%. The average income of employees is VND6 million/person/month. In addition, the Authority of IPs in Hoa Binh has also planned, advised on, and submitted to the Provincial People's Committee a Strategy for the development of industrial parks and clusters in the province to 2030; amending a number of rules and regulations on coordination in the performance of tasks; advising on improving the operational efficiency of the Steering Committee for investment and development of infrastructure of industrial parks and clusters in the province. Besides, it has coordinated with the leading agencies to advise on the development and submission of a number of provincial projects, including the development of IPs.

In 2021, 100% of Hoa Binh's IP development targets (revenue, export, state budget payment, investment attraction ...) met and exceeded the set plan. The activities of enterprises in IPs have brought remarkable efficiency, the indicators on the development of IPs increasingly account for a large proportion in the implementation of socio-economic targets of the province (export value accounts for 51%, revenue (industrial production value) accounts for 33.72% of the province's value), contributing to economic restructuring, creating jobs and contributing to the local budget. It is the result of the continuous efforts of the Authority of the Provincial Industrial Parks during the past 15 years. In addition to the policies to support and attract investment of the province, the Authority has gradually reformed administration to simplify procedures, and accompanied businesses to create an open, favorable and attractive investment environment for domestic and foreign investors.

Improving efficiency of investment attraction

Investment attraction has been a key solution for Hoa Binh province to speed up economic development; solutions to improve the business investment environment are still identified as the key tasks of all levels and sectors in the province. Therefore, the Authority of Provincial IPs also makes constant efforts in advising and managing so that the IPs in the area develop quickly, and businesses and investors have the most favorable operating environment.

Mr. Chu Van Thang, Head of the Authority of IPs in Hoa Binh province, said that in the coming time, the Authority would focus on building investment incentive mechanisms and policies and investment promotion solutions to attract general investors, capable and experienced IP infrastructure investors to synchronously invest in infrastructure in IPs. It will advise the Provincial People's Committee to lead, mobilize the participation of the whole political system, and focus on giving drastic direction for site clearance work in IPs.

It will focus on attracting environmentally friendly projects, using land economically and efficiently, contributing a lot of budget, solving many jobs for workers. It will organize direct contact with potential investors (traditional investors such as Japan, South Korea; new investors from Europe, America and large corporations and enterprises in Vietnam) to invite investment in IPs in the province.

The Authority of Hoa Binh IPs will continue to accompany businesses and commit to create the most favorable conditions and environment for enterprises to invest, produce and do business in IPs in the province. The Authority always considers the success of IP enterprises in the province to be its success; and the difficulties and problems of IP enterprises as priority issues for coordination and resolution of the Authority, relevant departments, sectors and local authorities.

Along with that, the Authority will continue to well implement 4 strategic breakthroughs of the province associated with the task of developing IPs including: Planning; administrative reform, especially administrative procedures; infrastructure development; developing human resources in association with job creation and increase in labor productivity. At the same time, it will promptly propose difficulties and obstacles in the implementation process.

Source: Vietnam Business Forum