Binh Phuoc Industrial Parks and Economic Zones Offering Incentives to Attract Investors

Along with the Hoa Lu Border Gate Economic Zone, Binh Phuoc province has been approved by the Prime Minister to plan 8 industrial parks. In 2012 and the early months of 2013, the national economy has faced many challenges, but the businesses of industrial parks and economic zones have worked to overcome the challenges and seek new markets. In 2012, the industrial production value of the projects under industrial parks has reached US$186.4 million, up 44.9 percent compared to 2011 (accounting for 22.5 percent of the industrial production value of the province), export value reached 152.35 million, up 37.7 percent compared with 2011 (accounting for 25 percent of total provincial exports) and contributed US$ 5.8 million, increased by 48 percent over 2011. The businesses of the industrial parks and economic zones have created 12,000 jobs, an increase of 33.3 percent over 2011.

 

In the first quarter of 2013 alone, the value of industrial production in the industrial park reached US$ 63 million, up 45 percent compared to the same period in 2012 and the export value reached 43 million, up 35 percent, contributing 30 billion VND to the national budget, up 180 percent. At the Hoa Lu border gate economic zone, the 2012 import turnover of the economic zone reached US$ 94.908 million, contributing to the state budget 6.9 billion, up 9.5 percent compared to 2011.There has not been a significant investment in the industrial park in the first months of 2013. In 2012, the industrial park attracted 11 projects, of which 7 are by foreign investors and 4 by domestic investors. Total domestic investment capital reached 104.7 billion, and total registered direct foreign investment reached 50.4 million. Due to incomplete infrastructure, the Hoa Lu Border Gate Economic Zone, though still under construction, starts calling for investment and up to now, has received 76 projects. Now 21 registered investors have committed total registered investment capital of VND 936.026 billion and US$2 million, but are not interested in the projects less than VND 15 billion.

 

Mr Nguyen Van Dung, Permanent Deputy Head of the Binh Phuoc Economic Zones, predicted that in 2013 the world economy is more complicated, posing challenges for investment in Binh Phuoc. To overcome these challenges, Binh Phuoc should adjust incentives in accordance with the actual conditions of the province to create incentives to attract investors to the Binh Phuoc. For the Hoa Lu Border Gate Economic Zone, the province will invest in infrastructure on 1,700ha of key areas to create favourable conditions to attract investment and implement projects. According to Dung, although recent investment in the province's IZs and EZs creates good signals, but provincial leaders remain concerned about low provincial competitiveness. In terms of comparative advantage between Binh Phuoc and neighbouring provinces such as Ho Chi Minh City, Dong Nai, Binh Duong, the infrastructure of Binh Phuoc is limited; therefore, large-scale investments with high technology and high-level labour are poured into big cities rather than Binh Phuoc. The growing number of small-scale investments in Binh Phuoc also raises big concerns of low technology and high risks of environment pollution so they do not contribute to the whole economy effectively. To mitigate this concern, the management board will evaluate the effectiveness of investors and projects under the industrial parks and economic zones. The projects with high risks of environment pollution and low technology will be reconsidered or relocated to more suitable areas. In addition, the province will continue to supplement new regulations and policies, particularly investment incentives to attract investment in Binh Phuoc. The province committed to create the most favourable business environment for investors, continue administrative reform, simplify administrative procedures, apply ISO in administrative procedures of the economic zone, and promote events to attract domestic and foreign investments.