Hoa Binh Industrial Parks- Engine of Socioeconomic Development

4:16:11 PM | 1/11/2016

The formation and development of industrial zones is a ground-breaking step to create huge appeal in the economic picture of Hoa Binh province. Industry always plays a vital role in economic development. The efforts of the Hoa Binh Industrial Zones Authority helped make industrial parks become primary driving forces to push economic restructuring and accelerate rapid and continuous economic growth and become a decisive factor in the industrialisation and modernisation of Hoa Binh province.

Although global and domestic economies confronted tough difficulties in the 2010 - 2016 period, the Hoa Binh Industrial Zones Authority still effectively attracted investors into industrial zones. In this period, industrial zones in Hoa Binh province drew 43 projects, including 15 foreign-invested projects with a total registered capital of US$353.64 million and 28 domestic projects with VND5,221.75 billion of registered investment capital. As of October 2016, industrial parks in Hoa Binh province housed 61 projects, including 43 domestic direct investment (DDI) projects with VND7,994.8 billion and 18 foreign direct investment (FDI) projects with US$398.29 million.

In the past years, foreign tenants in industrial zones have made important contributions to local socioeconomic growth, created more jobs for workers and raised industrial production capacity. This has been an important force in economic restructuring towards increasing the share of industry and service.

To attract more investment capital in general and FDI capital in particular, the province must first of all have good infrastructure, including technical infrastructure and social infrastructure. Hoa Binh has detailed planning for eight industrial zones but it needs to increase investment for infrastructure inside and outside industrial zones. For external infrastructure, the most important is having high-quality traffic systems. For the time being, Hoa Binh - Hoa Lac Highway has been about 65 per cent completed and is expected to be fully completed in April 2017. This will serve as a leverage to pull more investment capital into Mong Hoa, Yen Quang and other industrial parks. For internal infrastructure, as infrastructure developers were increasingly hesitant to make investment, the Hoa Binh Industrial Zones Authority advised the Provincial People’s Committee to request the Provincial Party Committee to issue Resolution 09/NQ-TU dated May 26, 2014 on boosting the development of Hoa Binh industrial zones in the 2014 - 2020 period by mobilising all resources and economic sectors with appropriate investment forms to invest in synchronous technical infrastructure.

Based on this resolution, the Hoa Binh Industrial Zones Authority has introduced various measures to raise funds for infrastructure construction. The authority is using centrally and provincially funded budgets to build a main road to Mong Hoa Industrial Park. In the coming time, it will ask the Provincial People’s Committee to approve a fundraising mechanism for the construction of industrial zones to welcome new investors after Hoa Binh - Hoa Lac Highway is completed.

List of projects calling for investment capital in 2016-2020

No.

Project

Scale

Location

Registrar

Technical infrastructure investment and operation in Thanh Ha Industrial Park

282 ha

Thanh Ha town, Lac Thuy district