Endeavor to Develop Modern and Integrated IZs to Attract Investment

In recent years, Bac Giang province has been promoting the development of industrial zones (IZs) to attract investment and create a solid foundation for its goal of becoming a key industrial province by 2030, with a focus on modern and sustainable growth, and one of the industrial development hubs in the region. To learn more, our reporter interviewed Mr. Dao Xuan Cuong, Director of Bac Giang Industrial Zones Authority.

Can you provide information on the development of IZs in Bac Giang province, their production and business outcomes, investment attraction, and contributions to the province's socio-economic development?

Currently, Bac Giang province has 10 industrial zones (IZs) that are operational or under development, with a total planned land area of over 2,464 hectares, of which over 1,680 hectares are leased for industrial use. The total area of leased industrial and administrative service land has reached 1,105 hectares, accounting for about 64%. Three IZs have been fully occupied (Dinh Tram, Song Khe-Noi Hoang, Van Trung); three IZs have reached 95% occupancy (Quang Chau, Hoa Phu, Viet Han Phase 1); the Tan Hung IZ has reached 83%; and three IZs are in the process of completing infrastructure and calling for investment.

The IZs have attracted 513 investment projects (397 FDI projects and 116 domestic investment projects) with a total registered capital of nearly US$11.2 billion and VND25.1 trillion. The actual capital implementation is estimated at approximately US$7.9 billion and nearly VND12.4 trillion. A total of 460 projects have been put into operation, creating jobs for about 222,000 workers (of which about 60% are local), with an average income of over VND8 million per person per month. 

In the first 10 months of 2024, we attracted and granted investment registration certificates for 37 new projects (including 28 FDI projects and 9 domestic investment projects) with total registered capital of US$349.55 million and VND6,669.9 billion. Additionally, capital increases were approved for 55 investment projects, with additional capital totaling US$736.2 million and VND818.86 billion. The total investment attraction for the year is estimated to reach US$1.391 billion. By the end of 2024, the total investment attraction is expected to reach about US$1.5 billion, exceeding the plan by 125%. 

In 2024, the total revenue from the production and business activities of enterprises in the IZs is estimated to reach about VND539.4 trillion, with export turnover expected to exceed US$26.4 billion. The industrial sector of the IZs accounts for approximately 82.7% of the province's total industrial production value. Enterprises in the IZs have made significant contributions to the economic and social development of the province.

How is Bac Giang province promoting the development of green, ecological and innovative IZs to achieve its goal of becoming a modern, sustainable industrial province by 2030, with a vision to 2050?

According to the approved plan for Bac Giang Province for the 2021-2030 period, with a vision toward 2050, the province is striving to become a modern industrial province, with comprehensive and sustainable development, focusing on green and ecological industry growth. The Prime Minister has approved the plan, which aims for Bac Giang to be a modern, sustainable industrial province with green, ecological industrial development.

Resolution 147-NQ/TU, issued by the Provincial Party Committee on July 15, 2021, regarding industrial development for the 2021-2030 period, also outlines the objective of renewing the industrial development mindset towards modernity, efficiency and sustainability. It emphasizes the need for synchronized industrial growth alongside urban and service sector development to create an "industrial ecosystem." By 2030, Bac Giang aims to become a key industrial province, modernized and sustainable, and one of the regional industrial development hubs.

To achieve this, the province plans to establish 29 IZs by 2030, covering a total area of approximately 7,000 ha. Currently, most of the 10 operational and under-construction IZs have modern, green, and synchronized technical infrastructure, with one zone specifically designed to meet ecological industrial park standards.

These IZs are diversified across sectors but prioritize receiving projects that utilize high automation technology, have a high investment capital per hectare, contribute significantly to the national budget, and at the same time focus on energy efficiency, land conservation, low labor use and minimal environmental impact.

Moving forward, Bac Giang will continue to focus on developing IZs across multiple sectors, particularly those using advanced, high-tech industries that are environmentally friendly and optimize land use. The IZ planning will also emphasize green spaces, ensuring that at least 12% of each zone’s area is dedicated to green space. The main transportation routes within the IZs will feature wide road sections with at least four lanes, and the electrical systems supplying factories will be underground to ensure aesthetic value.

Furthermore, the development of IZs in the province is aligned with the goal of creating an industrial-urban-service ecosystem. This approach supports the overarching strategy of promoting green and sustainable economic growth.

Industrial zones have greatly contributed to the province's economic and social development

What solutions will be implemented to support businesses, enhance investment attraction and promote industrial development?

In recent years, Bac Giang has consistently focused on improving the investment and business environment in its IZs. As a result, its investment promotion and attraction efforts have been successful, placing it among the top 10 provinces and cities in Vietnam for foreign direct investment (FDI) attraction.

To maintain and enhance the effectiveness of investment attraction, we will focus on the following solutions in the coming period:

Accelerating the development of industrial park infrastructure to ensure land and facilities are synchronized, effectively meeting investor demands. 

Enhancing the investment and business environment to be favorable, equitable, open, transparent, and welcoming. This includes strengthening leadership and operational capacities, fostering innovative thinking and implementing meaningful administrative reforms. 

Elevating the quality of investment promotion activities by targeting major corporations and enterprises. We will adopt appropriate support policies for key investors, prioritize projects that significantly contribute to the budget, employ advanced technologies, and minimize labor use and environmental impacts. 

Bolstering support and oversight for post-licensing investment activities. We will consistently monitor progress, address challenges, and expedite project timelines while ensuring thorough inspection and supervision to maintain a fair business environment. Additionally, we will actively disseminate legal regulations, swiftly detect and address violations, and collaborate with relevant agencies to enforce compliance in investment, construction and environmental protection. 

Thank you so much!

By Binh Minh, Vietnam Business Forum