4:09:26 PM | 3/9/2015
Hai Duong province has been attracting significant investment in its industrial parks (IPs) in recent years with modern infrastructure and stable production, creating jobs for local workers and contributing to the State budget. Vietnam Business Forum had an interview with Mr Pham Minh Phuong, Director of the Hai Duong IPs Authority to learn more about these results. Duc Binh reports.
How do you evaluate investment attraction and production situation of enterprises in the industrial parks in Hai Duong province in the first 6 months of this year?
Hai Duong province has 18 IPs which were approved by the Prime Minister in the list of plan by 2020 with a total area of 3,517ha. The IPs are located along Highway no.18 and no.5, in Cam Giang commune, Kim Thanh, Chi Linh town and Hai Duong city. To date, there are 10 IPs which are set up and implement construction - infrastructure business projects with a total planned area of 1,823.84 hectares in details. Among which, there are 7 IPs including Nam Sach, Dai An, Phuc Dien, Tan Truong, Viet Hoa - Kenmark, Lai Vu, Phu Thai - Phase 1 that are constructed synchronously in technical infrastructure, meet timely requests for investors to reassure on business and production activities. Besides, a number of infrastructure projects have been delayed due to clearance work, land allocation and waiting for adjusted detailed planning to suit the situation of attracting investment, some infrastructure projects face resistance from some people so they have to stop performing for several years such IPs as Lai Cach, Lai Vu, Cam Dien - Luong Dien.
In recent years, the world’s economy in general and Vietnam’s in particular affected by economic and financial crisis; however with the attention of the Government, the ministries and the leaders of Hai Duong Province, and the investment promotion of investors, the number of projects as well as annual investment capital tend to increase. In 2012, the authority licensed 13 projects with total capital of US$45.80 million and adjusted additional capital for 8 projects. In 2013, the authority licensed 18 projects, total US$619.895 million, and adjusted capital for 12 projects. In 2014, it licensed 25 projects with total capital of US$389.218 million for 12 projects. Particularly in the first 6 months of this year, there were 6 new projects with total capital of US$117.937 million, and 6 projects that received a total capital increase of about US$228.540 million.
Up to now, the province's IPs have attracted 198 projects (including 14 infrastructure projects and 184 secondary infrastructure projects) from 16 countries and territories with total registered capital of over US$3.87 billion. The occupancy rate of industrial land to lease is over 61 percent, in which 3 IPs (Nam Sach, Phuc Dien, Phu Thai - Phase 1) reach 100 percent occupancy rate for industrial rent land.
After being licensed, most enterprises quickly implement their projects. Projects invested in the IPs have advanced technology from countries and territories such as Japan, Korea and Hong Kong. Production and business results of most businesses are stabilised, the rate of exports accounts for high share of in overall export value of the province. In 2014, there were over 140 projects in operation with sales reaching US$2.8 billion, export value reached US$2.7 billion and imports US$1.9 billion, contributing US$50 million to the state budget, and creating jobs for nearly 750,000 workers.
What are the difficulties and problems in attracting investment in IPs currently?
In the past time, the promotion to attract investment in IPs in the country in general and in the province of Hai Duong in particular has been influenced by the impact of the economic crisis. Annually, the Hai Duong IPs Authority are actively coordinating with other local offices to counsel PPC in implementing a number of measures to gradually improve the investment environment of the province, such as the organisation of joint missions doing investment promotion abroad, conference meetings, dialogue between leaders and investors to exchange, remove the difficulties and obstacles in the process of project implementation and production activities, coordinating support and creating favourable conditions for investors in infrastructure in the settlement of administrative procedures to promptly attract investment projects. Leaders often directed specialised departments to implement the management and implementation of administrative procedures promptly, quickly and properly.
Besides the implementation process still faces some problems such as the overlapped legal system and frequently changes making it difficult for investors; time-consuming administrative procedures relating to land clearance and allocation; Administrative procedures related to tax declarations, customs, immigration for foreigners, payment and settlement procedures of social insurance regime remains flawed; housing for workers in the general IPs and Hai Duong IPs in particular is limited; while the labour force has weak skills, limited experience, and limited foreign language qualifications.
In your opinion, in order to further improve the investment results of Hai Duong province in general, what specific areas does the province focus on?
With the goal of building the Hai Duong province into the friendly, stable and attractive destination to investors; attract capital, technology, knowledge and management experience serving the socio-economic development goal, the province proposed the motto that accompanying investors, creating favourable conditions to settle all formalities for investors, being well prepared for infrastructure to create a stable environment for businesses to keep their mind. Currently, the Hai Duong IPs Authority in particular and Hai Duong province in general are continuing to innovate, to further improve the quality and efficiency of investment promotion activities towards professionalism. Accordingly, we attract investment in the sectors of high technology, clean industry; giving priority to develop the productive sectors with high content of science and technology, high added value, without polluting the environment and also the supporting industry.