Effectively Implementing Investment Projects in IZs

The Vinh Phuc Industrial Zones Management Board, along with the infrastructure developers and secondary investors, have demonstrated their continuous effort and strong resolve to apply the guidelines and policies of the Vietnamese Government and the Vinh Phuc Provincial People’s Committee in a flexible and creative manner, resulting in positive outcomes for the investment projects in Vinh Phuc Industrial Zones since the beginning of the year.

As of July 15, 2023, Vinh Phuc IZs had 464 valid investment projects, comprising 105 domestic direct investment (DDI) projects with a total registered capital of VND31,689.09 billion (US$1.4 billion) and 359 foreign direct investment (FDI) projects with a total registered capital of US$6.23 billion. Tenants in IZs have accelerated the implementation of their investment projects since the start of this year, with the realized investment value in the first seven months reaching 103% of that in the same period of 2022.

In July, one more FDI project became operational, bringing the total number of operational projects to 399 as of July 15, 2023 (329 FDI projects and 70 DDI projects), which accounted for 86% of the total projects. Among the 65 projects that have not yet been put into operation, 15 were under construction, representing 3.2% of the total projects; 42 were carrying out initiation procedures (9%); three were conducting land compensation and site clearance (0.8%); and five were behind schedule (1%). Realized FDI capital in July amounted to US$38.23 million, raising the seven-month total to US$260.79 million, which was equivalent to 103% of the value in the same period of 2022 and 71% of the full-year target for 2023. As of July 15, 2023, the realized FDI capital was US$3.68 billion, reaching 59% of the total registered value. The disbursed DDI capital was VND90 billion in July, lifting the seven-month value to VND859.15 billion, which was 103% of the value in the same period of 2022 and 45% of the yearly target for 2023. As of July 15, 2023, the accumulated realized DDI value was VND12,983.06 billion, accounting for 41% of the total registered capital.

In the remaining months of 2023, the Vinh Phuc Industrial Zones Management Board will continue to expedite the progress of infrastructure construction in licensed industrial zones; enhance selective investment attraction and selection with quality, performance, technology and environmental protection as priority criteria; improve the investment and business environment, creating a fair and conducive environment for all investors; actively propose solutions to remove difficulties for projects; and increase the effectiveness of post-investment project management.

By Quynh Ngoc, Vietnam Business Forum