More Large Industrial Parks to be Built

2:51:25 PM | 7/21/2006

Prime Minister Nguyen Tan Dung has accepted the establishment of several industrial parks (IPs) in many localities, including Vinh Phuc, Ninh Thuan, Hai Duong, Nam Dinh and Long An provinces.
 
In particular, the 327-ha Ba Thien IP was set up in Vinh Phuc Province, the 105-ha Thanh An IP in Nam Dinh Province, and the 256-ha Thanh Duc IP and the 142-ha Long Hau IP in Long An Province.
 
Previously, the Prime Minister also permitted Ninh Thuan Province to establish the 370-ha Phuc Nam IP, including 151 ha in the first phase. Hai Duong Province was licensed to expand the 470-ha Dai An IP while Dong Nai Province as allowed to widen the 150-ha Dinh Quang Industrial Zone.
 
According to statistics from the Ministry of Planning and Investment, by the end of 2005, Vietnam had a total 130 industrial parks with a combined area of 26,517 ha in 45 provinces and cities. These IPs housed 4,516 domestic and foreign investment projects with a total registered capital of US$24.43 billion.

In 2005, IPs nationwide created a total industrial production value equalling 28 per cent of Vietnam’s aggregate industrial value. They paid more than US$ 650 million to the State Budget and employed some 740,000 workers.
 
Meanwhile, according to the Ministry of Natural Resources and Environment, about half of the industrial park area is in use and many IPs have been empty for a long period of time.
 
In addition, sluggish construction of invested projects also leads to a poor use of IP land. Notably, the land lease and transference does not actually rely on the area need of projects. Normally, the land lease or transfer is based on request of investors, not on appraisal from relevant organs. As finding many enterprises kept their leased land unused, local governments find it hard to reclaim their land.
 

As planned, the industrial zone area will reach 100,470 ha in the 2006-10 period, nearly doubling the area in 2005. This area is mainly to meet the industrialisation and modernisation requirements of nationwide provinces and cities. The traditional trade villages have also been grouped into complexes to encourage production expansion and environment reduction.