Boosting Investment Attraction into Dong Nai Industrial Zones

4:17:45 PM | 21/8/2014

As one of the provinces with the fastest-growing industrial sectors in the country, Dong Nai has achieved positive results in attracting investment into its industrial zones. This is the motivation for the Dong Nai Industrial Zones Authority to continue to concentrate all resources to pull in investment, thus helping realise local socioeconomic development objectives.
In the first six months of 2014, the Dong Nai Industrial Zones Authority licensed 42 projects in industrial zones, including 34 foreign direct investment (FDI) projects and eight domestic direct investment projects. New investors and operating projects in 31 industrial zones in the province registered to inject US$693.71 million and VND3,326 billion (US$155 million) in the six-month period. Investors registered to rent 91.93 ha of land in the reporting period. Existing projects had stable operations although they faced numerous difficulties in the past time. Currently, investment projects in Dong Nai province-based industrial zones employ 441,456 workers.
 
Attracting investment for key sectors
The province has advocated investment in high technologies, supporting industries, clean industries and large-scaled projects. In the first six months of 2014, Dong Nai province-based industrial zones allured 34 FDI projects capitalised at US$314.16 million, up 6 percent in projects and 36.8 percent in value from a year earlier. The amount of capital added by existing projects also rose 30 percent from the same period of 2013. In the year to date, industrial zones in Dong Nai province have drawn US$900 million, equal to 77 percent of the 2014 plan.
 
The local industrial zones also housed eight new domestic projects with a total registered capital of VND2,014 billion (US$93.7 million) in the six-month period, up 60 percent year on year. The fresh and additional investment capital of domestic projects was VND3,326 billion (US$155 million) from January to June, 66 percent higher than the full-year target of VND2 trillion (US$93 million).
 
To effectively draw investment capital as oriented, the Dong Nai Industrial Zones Authority always focuses on developing industrial zone infrastructure and actively cooperates with competent authorities to deal with problems and difficulties facing infrastructure companies which build and develop industrial zones. At the same time, the authority keeps a close watch on industrial zone construction and development planning to reach the highest results as planned.
 
On the other hand, the authority also received more than 25 domestic and foreign investors in the period. It also introduced products of industrial park-based companies on its bulletins. It also actively introduced and instructed investors to visit Industrial Zones to study investment opportunities, land rents and workshop leasing.
 
Reforming administrative procedures
To attract domestic and foreign investors into Dong Nai-based industrial zones, administrative reform is one of urgent tasks of the Dong Nai Industrial Zones Authority. In the past time, the authority has stepped up administrative reform, applied ISO9001:2008 management system to administrative procedures, and reviewed the practicability of administrative regulations.
 
The management board continues to update legal documents on administrative procedures to amend, supplement and inform businesses of new contents, and propose paperwork streamlining.
 
In addition to simplifying administrative procedures, local investment management bodies are facing some unsolvable problems because of no regulatory instructions like owner-absent companies. The Law on Investment, the Law on Enterprises and their instructive decrees allow companies to transfer projects but they do not specify the order of procedures and income tax incentives for supporting industry projects. Besides, procedures for the certification of supporting industry projects are time-consuming. Sometimes, investors lose investment opportunities and feel distressed because of unfavourable administrative procedures.
 
Last but not least, the time for settling administrative procedures is not specified; thus, most projects that need superior review usually take longer time than expected. Therefore, the authority will ask the Government, ministries and the Provincial People's Committee to quickly have detailed instructions for handling owner-absent projects, dissolved projects and transferred projects as well as introduce specific incentives and preferences for projects engaged in supporting industries.
 
Ho Tuong