In recent years, the building and development of industrial parks and complexes has proved its important role in promoting Vietnam’s industrialisation and modernisation. However, alongside the achievements, there are still shortcomings.
By the end of 2004, Vietnam had 164 industrial parks allowed or approved in principle by the Prime Minister to be established. Of this figure, 122 industrial parks, with a total area of 21,829 hectares, were allowed by the Prime Minister. So far, 68 industrial parks have become operational and 44 others are under construction. The figure doesn’t include industrial complexes which were allowed or have been allowed to be established by the People’s Committees of provinces and cities.
The development of industrial parks and complexes has created a breakthrough in the development of Vietnam’s industrial sector in particular and the whole of society and the economy, making a contribution to promoting economic restructuring with the industrialisation and modernisation process. Industrial parks contribute a quarter of Vietnam’s industrial production value, creating new production capability of many major economic sectors.
The formation and development of industrial parks and complexes have contributed to Vietnam’s high economic growth rate and the formation of industrial centres along with the development of urban areas, helping economic restructuring with an increase in the contribution of industrial production to the country’s economy. Over the past ten years, since the development of industrial parks and complexes, industrial production value has increased from 22.7 per cent in 1990 to 39.9 per cent in 2003. Industrial parks and complexes contributed around US$473 million to the State budget in 2003, according to the figures of the Ministry of Planning and Investment.
The formation of industrial parks has boosted the development of the services in localities, which serve the activities of the parks. By the end of 2004, industrial parks and small and medium-sized complexes had attracted 583,561 people, let alone 90,000 more indirect workers in the parks and complexes. Clearly, the formation and development of industrial parks and complexes is an indispensable development step within Vietnam’s industrialisation and modernisation.
However, along with the achievements, there are still shortcomings during the development of industrial parks and complexes.
While many localities have developed suitable plans for their industrial parks and complexes, some localities have developed parks and complexes without plans as they use a lot of land for agricultural production and land with advantage for agricultural development, and residential land for building industrial parks and complexes. This is the case of Hung Yen, Hai Duong, Dong Nai and Long An. These localities can use land for other purposes with investment in infrastructure development for planning industrial parks and complexes. Also, the planning of the development of industrial parks and complexes has not matched the planning of residential areas. Without suitable plans, the development of industrial parks and complexes in some provinces has produced a negative effect on the life of local people, whose land has been recovered for the building of industrial parks and complexes.
Another shortcoming is that many industrial parks and complexes have not paid due attention to environmental issues. Many of them have violated regulations on environmental protection. In Ho Chi Minh City and nearby localities, trial parks and complexes are suffering from environmental pollution. Also, waste water treatment plants in many industrial parks and complexes fail to meet the standards set by the Government. Among the over 100 industrial parks approved by the Prime Minister, only 20 parks have concentrated waste water treatment plants. At present, no localities have any individual treatment system for industrial and dangerous wastes.
The biggest difficulty is land recovery compensation and resettlement support. A slow implementation of projects on building industrial parks and complexes results from difficult site clearance. People, whose land has been recovered for the building of industrial parks and complexes, often petition for compensation. In some localities, many people besiege enterprises, creating disturbances, producing negative socio-economic impacts. Compensation for land recovered by the State for industrial parks and complexes are different from place to place. Also, resettlement areas are not of high enough quality.
Furthermore, in an effort to attract investors, many localities have offered incentives and priorities, which have exceeded the regulations by the Government and ministries.
To overcome these difficulties and shortcomings for a more sustainable development of industrial parks and complexes, the Government should review the planning of land use for the development of industrial parks and complexes to make adjustments suitable with socio-economic development targets of each locality and region. The conversion of rice growing land into industrial parks and complexes should be limited. Localities, which do not have other land types for the building of industrial parks and complexes, can use land for rice growing, but in a thrifty manner. Industrial parks and complexes should not be developed along national highways or near concentrated residential areas. On the macro-management level, the Government should have suitable policies on compensation with concrete solutions to help farmers, whose land is recovered for the building and development of industrial parks, to have a stable life. There should also be policies on allowing land users to contribute their land as capital to enterprises which will develop infrastructure facilities of industrial parks and complexes or invest in production activities in the parks and complexes. Policies on resettlement should be observed closely in line with the Land Law. Accordingly, people should not be relocated in resettlements, which are of poor quality. Also, a fund for job creation support should be established on a basis of proceeds of land use fees and rent paid or contributed by enterprises to the State budget in industrial parks and complexes to help those who have had their land recovered stabilise their lives. Each locality should promote its restructuring of its agricultural production and rural economy, diversifying products and expanding its growing areas, increasing economic value on a cultivation area unit. Also, the development of traditional crafts and handicrafts should be boosted to create more jobs and incomes for local people.
Ba Luong
Vietnamese
