Aggressively Addressing Obstacles in IP Infrastructure Projects

2:53:04 PM | 11/17/2024

To become a modern industrial province, Vinh Phuc is accelerating site clearance for many industrial park projects to enhance investment attraction and boost local socioeconomic development.


Song Lo II Industrial Park is accelerating construction progress

Focus on site clearance for IPs

Currently, Vinh Phuc province is focusing on land compensation and site clearance for 10 major IP projects with a total area of over 1,987.9 ha. Seeing that this is a difficult task, a "bottleneck" in investment attraction and industrial development, the Provincial Party Committee, the Provincial People's Council and the Provincial People's Committee have actively directed strengthening leadership, direction and assignment of provincial agencies and district-level authorities to enhance the State administration of IPs.

By effectively addressing land price determinations and streamlining administrative procedures, Vinh Phuc has compensated and cleared 1,292.71 ha of land, achieving 65% of the target area. In the Tam Duong II Industrial Park - Section A project, 103.247 ha (80.74%) of the 127.87 ha has been compensated, with 24.623 ha remaining. For the Tam Duong I Industrial Park - Section 2 project, over 109 ha of the planned 162.33 ha has been cleared, but the developer faces challenges with 1.2 ha.

However, the biggest hindrance at present is that 71 households have not received land compensation and accepted site clearance although the land compensation and site clearance plan was approved in 2014-2016. Tam Duong district has invited those households to settle disputes, but they have not agreed as they wanted current prices for land compensation and site clearance.

On the other hand, households had their land recovered by the Tam Duong People's Committee and the Vinh Phuc Provincial People's Committee in 2014-2016, but resettlement infrastructure was not completed until 2024, resulting a significant difference in land prices between the two periods of time (the time of land recovery in 2014-2016 and the current resettlement period). As a result, these households did not agree to pay the price difference between such two periods.

In 2021, following the Prime Minister's approval, the Vinh Phuc Provincial People’s Committee established two industrial parks covering 343.01 hectares in Song Lo district. The district formed a steering committee for land compensation and site clearance, engaging local leaders to announce project policies. The district implemented the site clearance plan, assigned tasks for compensation, and notified affected households. It also coordinated with localities to identify landowners and determine land origins.

To date, Song Lo II Industrial Park has adopted the compensation plan, site clearance and land recovery land and paid land compensation and site clearance costs for 160.32 ha out of 165.65 ha, or 96.78% of the planned area. The Vinh Phuc Provincial People’s Committee allocated 152.76 ha of land to the investor (reaching 92.22%). Song Lo I Industrial Park accepted the land compensation, site clearance and land recovery plan for 32.4 ha out of 177.36 ha.

To expedite land compensation and site clearance for the industrial parks, Song Lo district requested the Provincial People's Committee to issue timely guidance in line with the Land Law 2024 and government decrees. The district also urged the Vinh Phuc Land Development Fund to assist the District People's Committee in securing loans for land compensation for infrastructure in resettlement areas, and to facilitate procedures for auctioning mining rights to fund the Song Lo II Industrial Park.

To actively remove land bottlenecks for industrial parks, at the Conference on “Sustainable Industrial Park Development in Vinh Phuc” in September, Chairman of the Vinh Phuc Provincial People's Committee Tran Duy Dong instructed relevant agencies and localities to finalize the auctioning of land mines for industrial park land leveling by December 2024. The Department of Natural Resources and Environment will work with District People's Committees to determine land prices and support the issuance of land use right certificates. The Departments of Planning and Investment and Finance will allocate funds for resettlement projects to facilitate site clearance, while also engaging in communication efforts to inform and gain public support for the process.

Inducing many new projects to IPs

By advancing investment promotion and attraction, especially local investment promotion, in the first nine months of 2024, Vinh Phuc province-based IPs have drawn many new projects, created investor confidence and motivated strong breakthroughs in investment attraction in the coming time. In its report, the Vinh Phuc Industrial Zones Management Board licensed 37 new projects and allowed 34 existing projects with a total investment capital of US$411.94 million and VND4,098.6 billion (US$174.5 million).

Specifically, the board certified 26 new FDI projects to invest US$179.43 million and 28 existing FDI projects to increase their investment value by US$232.51 million. The agency also licensed 11 new DDI projects with VND2,932.58 billion and allowed six existing projects to add the capital by VND1,166.02 billion.

As of September 15, 2024, industrial parks attracted 495 projects, including 119 DDI projects with VND38,822.71 billion of investment capital and 376 FDI projects with U$6,731.8 million.

In the last three months of 2024, the board anticipates issuing revised investment registration certificates for 3-5 FDI projects valued at US$70-100 million and 1-2 DDI projects worth VND 80-100 billion. Additionally, it expects 13 more projects to begin commercial operations, including nine FDI projects totaling US$90-100 million and four DDI projects with investments of VND500-700 billion.

Indeed, removing land bottlenecks for industrial parks in Vinh Phuc is an important task. Vinh Phuc needs to further maintain these efforts, ensure community consensus and flexibly adjust policies to meet actual needs. Successfully removing difficulties in land compensation and site clearance will enable the sustainable development of Vinh Phuc province in the future.

By Thanh Loan, Vietnam Business Forum