Industrial and Export Processing Zones: Playing Big Contributions to National Economy

Since the first establishment of Tan Thuan Export Processing Zone 16 years ago, Vietnam has 90 operational industrial and export processing zones and 60 underway industrial and export processing zones, totalling 150 zones covering 21,376 hectares.

According to statistics, industrial and export processing zones are located in potential and advantageous regions such as Red River Delta, South-eastern region and central coastal region. Most tenants in industrial zones are engaged in light industries such textile, garment, leather, footwear and food processing. As of late 2006, foreign direct investment capital into EZs and EPZs exceeded US$20 billion and domestic capital surpassed US$10 billion.

 

The one-door administrative procedure at industrial zones has brought in benefits and increased attractive investment environment. Models of specialised industrial zones were set up like export processing zones, high-tech parks, economic zones, open economic zones and specialised industrial zones. Many economic sectors have taken part in building industrial zones and attracted many sources of investment capital. Most industrial zones are operated effectively and played important roles in the industrialisation and modernisation in Vietnam. Arguably, industrial zones and export processing zones have created new, modern and valuable infrastructure for many localities and helped modernise Vietnamese infrastructure.

 

Industrial zones and export processing zones made increasing contributions to the industrial value ratio in the GDP of Vietnam. The ratio increased year after year. If the industrial zones and export processing zones made only US$9.5 billion industrial production value in the 1996-2000 period, the figure jumped to US$44.4 billion in the 2001-2005. The total export revenue made by companies in the industrial zones and export processing zones was US$6.2 billion in the 1996-2000 period and soared to over US$22.3 billion in the 2001-2005 period. Especially, in 206, the total industrial production value is estimated to reach US$17 billion while the export value reached US$8 billion. Tenants in industrial zones make a facelift for Vietnam.

 

Industrial zones and export processing zones also generate jobs for Vietnamese people, raise awareness level of the people and implement social responsibilities. As of late August 2007, tenants in industrial zones employed over 900,000 director labourers and some 1.5 million indirect labourers. Many industrial zones constructed vocational schools. Over the past 16 years, the infrastructure in industrial zones has been consolidated. From industrial zones, Vietnamese workers are trained professional working styles when the work with foreigners. Industrial zones are good schools to train Vietnamese workers.

 

Vietnam targets to lease out all land areas in industrial zones by 2010. If new industrial zones are counted, the country will have an additional 49,000-52,000 hectares.