Bac Giang Industrial Zones: Attracting High-quality Investment Projects

9:10:54 AM | 9/5/2023

By effectively carrying out consistent solutions for a better business and investment climate, Bac Giang province has attracted more investment capital into industrial zones. Mr. Dao Xuan Cuong, Director of Bac Giang Industrial Zones Authority, gives us an interview on this issue.

Most investment projects in Bac Giang are involved in manufacturing electrical and electronic products, automobile and 
motorcycle parts, and solar batteries

Could you please tell us about contributions of local industrial zones to socioeconomic development of Bac Giang province, as well as the whole country?

Currently, Bac Giang province has nine industrial zones approved for formation and operation by the Prime Minister, with a total area of 1,967ha. Among them, six operational IPs attracted 466 investment projects (351 FDI projects and 115 DDI projects) with a total registered investment capital of US$8.62 billion and VND18,364 billion. Currently, 409 operational projects are employing over 175,000 workers, each of whom has an average monthly income of VND8-9 million.

Tenants in industrial parks have made great contributions to local socioeconomic development. Specifically, in 2022, the economy of Bac Giang province maintained strong recovery momentum amid general difficulties, with the gross regional domestic product (GRDP) growth of 19.3% (nearly 2.5 times higher than the national average), the highest ever of the province and the second highest in the country in the year.

In the first six months of 2023, although enterprises faced numerous difficulties, the province's economic growth still reached 10.94%, ranking 2nd in the country. Its industrial production substantially expanded by 16.7% year on year to VND235,555 billion (over US$10 billion). Of the sum, tenants in industrial parks made VND211,000 billion, or 89.57% of the total value. The merchandise export value was estimated at US$14.14 billion, fulfilling 64.3% of the full-year target (US$22 billion).

To execute the resolution of the Provincial Party Congress which states the goal that Bac Giang will basically become an industrial province by 2030, Bac Giang built the provincial master plan which was approved by the Prime Minister, becoming the first in the country to have this approval. Accordingly, Bac Giang planned to have 29 industrial zones by 2030, with a total land area of 7,000 ha. When they are constructed and put into operation, they will continue to make substantial contributions to socioeconomic development of Bac Giang province as well as Vietnam.

How has the authority recently stepped up investment promotion and attraction to draw more big, capable investors into local industrial parks?

Investment attraction is always a focus of the Bac Giang Industrial Zones Authority. We concentrate on carrying out administrative reforms and press officials in charge of administrative procedures to be enthusiastic, responsible and legally compliant, avoid troublemaking or harassment against enterprises. Administrative procedures are always open and transparent about the order of settlement. Companies are required to submit original copies of documents only after online administrative procedures are adopted, and receive results at single-window divisions of the Provincial People's Committee. The authority always captures and listens to opinions and complaints from enterprises to have prompt solutions to them or submit them to competent authorities for final settlement.

Therefore, large-scale corporations have expanded their factories in Bac Giang province. For example, Foxconn Group has invested US$2.3 billion in 10 projects in Bac Giang since 2008. JA Sola Group has spent US$589 million on three investment projects. Luxshare Group has invested US$364 million in two projects in the province.

Most investment projects in Bac Giang are involved in manufacturing electrical and electronic products, automobile and motorcycle parts, and solar batteries. These industries generate products of high added value.

What are potential advantages for industrial zone development stated in Bac Giang Provincial Master Plan for the 2021 - 2030 period, with a vision to 2050?

Bac Giang is a midland and mountainous province but it has a very convenient location: 50km from Hanoi, 50-minute drive to Noi Bai International Airport, lying on Hanoi - Lang Son Highway 120km from Huu Nghi Lang Son International Border Gate, and 120km from Hai Phong Port. The province planned to build industrial zones along national highways to ensure convenient traffic connections to neighboring provinces and cities.

In 2023, Bac Giang urged to speed up site clearance for Viet Han, Quang Chau, Hoa Phu, Song Khe - Noi Hoang (south), Yen Lu and Tan Hung industrial zones; completed building technical infrastructure for industrial zones as planned; and expanded the land fund for investors.

In Resolution 81/2023/QH15 dated January 9, 2023 of the National Assembly on National Master Plan in 2021-2030 and to 2050, industrial processing, manufacturing and energy are driving forces for regional development and regional connectivity in the northern midland and mountainous region. Focus will be placed on building Bac Giang - Thai Nguyen - Vinh Phuc - Phu Tho industrial belt to become the driving force for regional growth. Bac Giang will develop sustainable industry to become one of regional industrial development centers, maintain high growth and further act as a main driving force for economic growth.

Thank you very much!

By Tran Cong, Vietnam Business Forum