Increased Administration of Licensed Projects

9:03:39 AM | 31/8/2020

The Vinh Phuc Industrial Parks Authority has paid special attention to the inspection and supervision of licensed projects to promptly detect and handle emerging difficulties, as well as investor violations in the course of project implementation.

From a 50-ha industrial park approved by the Government in 1998, Vinh Phuc province now has 18 industrial parks covering a total area of 5,228 ha. Internal and external technical infrastructure systems have been increasingly upgraded. Local industrial parks house 306 projects, including 262 foreign direct investment (FDI) projects and 44 domestic direct investment (DDI) projects.

Exercising the mandate of administering investment projects in Vinh Phuc industrial parks, improving the environment and attracting investment flows, the Vinh Phuc Industrial Parks Authority has always attached great importance to close inspection, management and supervision of licensed projects like integrating, reviewing and classifying projects to monitor and revoke incapable projects to spare the land for other projects. In 2016 - 2020, the Industrial Parks Authority has revoked 24 projects, including 20 FDI projects with US$119.84 million of registered capital and four DDI projects with over VND3,639 billion (US$155 million). In the first six months of 2020, the authority carried out procedures to terminate operation of a US$250,000 FDI project because the investor was unable to continue the project due to difficulty in the output market.

In addition, the authority has carried out 12 inspections on compliance with investment, land, construction labor and employment laws into 221 tenants in industrial parks and promptly reminded violators to have settlement plans, avoid violations, and ensure operational stability and performance. At the same time, it has proactively worked with relevant authorities to inform tenants of labor laws; requested tenants to strictly comply with labor laws and ensure employee policies.

In the first six months of 2020, the authority issued/reissued 478 work permits; approved foreigner employment for 169 enterprises; received 14 labor regulations, 98 payroll scales, 19 collective bargaining agreements and six overtime work requests. Moreover, it has coordinated with law enforcement forces and relevant agencies to take measures to protect industrial parks, ensure security, prevent crime, and facilitate tenants to engage in lawful production and business activities.

FDI projects target to increase their second-half revenue by 5% over the first half of this year, pay over VND1,338 billion of taxes to the State budget, and employ about 2,000 more workers. DDI projects are expected to have revenue growth of 30% and tax growth of 39% over the first 6 months of 2020. In the coming time, the Vinh Phuc Industrial Parks Authority will further boost communications with enterprises to know their hardships for timely resolution.

Source: Vietnam Business Forum