Lam Dong Industrial Parks - Trusted Destinations for Investors

1:33:42 PM | 12/11/2018

“Developing industrial parks is defined as a key task of Lam Dong province and this work thus always has the attention and guidance of the Provincial Party Committee, the Provincial People’s Council, the Provincial People’s Committee and central authorities. Industrial parks have basically met production and business requirements of their tenants,” said Mr Tran Xuan Vuong, Director of the Lam Dong Industrial Parks Authority, in an interview granted to Vietnam Business Forum Magazine. Hoang Lam reports.

Could you please introduce investment attraction results of industrial parks to date?
According to the Industrial Park Development Plan to 2020, Lam Dong province will have three industrial parks (Loc Son, Phu Hoi and Tan Phu Agriculture) covering 620 ha. Currently, Loc Son and Phu Hoi industrial parks have attracted 70 enterprises/projects with the total registered capital of US486.61 million and VND3,773.13 billion (US$161 million), of which 38 have been put into operation. In the first eight months of 2018, the Lam Dong Industrial Parks Authority granted investment certificates to seven companies which registered to invest US$3million and VND265.44 billion (US$11.3 million).

In general, tenants in the two industrial parks are in stable operation, and helpful to local economic restructuring aimed to increase the share of industry.

What solutions has the province adopted to increase investment capital into industrial parks?
In the past time, the Provincial People’s Committee instructed relevant bodies to study and review administrative procedures and processes to create a favourable and transparent investment environment. The committee also timely promulgated regulations on investment activities in order to help accelerate administrative reforms at State management agencies; speed up the execution progress of licensed projects; promptly solve difficulties and problems for investors; revoke licences from inactive projects or from incapable, inexperienced investors. The province also introduced investment preferential policies on land rent exemption and reduction and corporate income tax.

Together with general solutions of the Provincial People’s Committee, the Lam Dong Industrial Parks Authority also has specific solutions to improve investment attraction outcome and support tenant development. The authority reviewed and simplified administrative procedures, featured by 20 per cent shorter time in handling administrative procedures. It also streamlined and eliminated unnecessary documents to further reduce the time and cost required for settling paperwork with authorities. It proactively guided and facilitated tenants to obtain investment registration certificate and administrative procedures after getting investment registration certificates.

As for land and tax incentives, the Lam Dong Industrial Parks Authority quickly updated land planning and available land for investors and enterprises to look up, and clarified the time of land incentive entitlement in each industrial park. The authority coordinated with the Department of Finance and the Department of Natural Resources and Environment to announce the framework of land rents as a basis for calculating the land rent for each industrial park.

Industrial park infrastructure is an important factor to draw investors. How has the infrastructure system invested in industrial parks?
Every year, according to the direction of the Provincial People’s Committee, the Lam Dong Industrial Parks Authority actively works out public investment plans. When the plans are approved, we stick to their contents to invest in infrastructure construction in industrial parks. Up to now, in general, investment in basic infrastructure development in industrial parks has met investors’ demand, including the installation of lighting systems and the construction of internal road systems in addition to construction of roads linked to industrial parks. We also brought a wastewater treatment plant in Loc Son Industrial Park into operation.
In the coming time, the authority will request the Provincial People’s Committee to support, allocate and mobilise capital sources for perfecting and synchronising essential infrastructure to facilitate tenants to carry out their projects and expand production and business activities.

Would you mind telling us how Lam Dong province invites and attracts investors into industrial parks from now to 2020?
Phu Hoi Industrial Park is now fully rented by tenants. The Lam Dong Industrial Parks Authority is calling investors to hire the remaining area in Loc Son and new industrial parks. The authority is also submitting a scheme for the establishment of Phu Binh Industrial Park in Duc Trong district.

In order to improve the investment attraction outcome in industrial parks, the Lam Dong Industrial Parks Authority will take the initiative in developing plans to invite investors to construct and operate infrastructure in Phu Binh Industrial Park. It will also organise investment promotion conferences to contact financially viable investors to invest in infrastructure development in Phu Binh Industrial Park and attract new investors into other industrial parks.

Thank you very much!