Can Tho is one of the five centrally-run cities of Vietnam, with a natural area of 1,439.2 square kilometers and a population of 1,272 million. Can Tho is located in the center of the Mekong Delta and also a center of economics, finance, education, science, technology and healthcare. In the near future, it is expected to become a modern industrial city, serving as a driving force for the Mekong Delta's development.
Can Tho City Export Processing and Industrial Parks Authority is an important part of this development.
Currently, Can Tho city has six concentrated industrial parks attracting 250 valid projects with a total registered capital of US$1,766 billion. Disbursed capital is US$1,075 billion (accounting for 60.9%); including 223 DDI projects (US$1,349 billion), 27 FDI projects (US$395.86 million) and one ODA project (US$21.13 million). By June 2020, the industrial parks employed 36,969 workers (34,407 official workers and 2,562 seasonal workers in 13,435 FDI projects), an increase of 3,022 people over the same period in 2019.
In the first six months of 2020, total revenue of enterprises reached US$908.93 million, up 5% over the same period in 2019; of which, the industrial production value reached US$680.10 million, up 8% over 2019; commercial services value reached US$227.82 million, down 4% year on year and exports value reached US$312.83 million, up 4% compared to 2019. Particularly for FDI enterprises, total revenue reached US$222.85 million, up 21% compared to 2019; in which, the value of industrial production reached US$222.85 million, up 21% and exports value reached US$129.33 million, up 39% over the same period in 2019.
In the first six months of 2020, the world’s economy in general and Vietnam’s economy in particular suffered heavily due to the COVID-19 pandemic. Enterprises in the industrial parks are no exception. Some businesses have difficulties in production and business with revenue decreased by about 30%. It is because there are no new orders; foreign customers suspend or cancel signed contracts; businesses have not yet recovered debts from export markets; export markets are narrowed, domestic markets are also facing difficulties due to social distancing and there is great pressure on social insurance, taxes, and workers' compensation.
Through survey, enterprises in the Can Tho Export Processing and Industrial Zones Authority (CEPIZA) recommended: (1) Reducing interest rates on bank loans; supporting loans from banks for social policies at 0% interest rates to pay employers who have to lay off; (2) Delaying payment of land rental and infrastructure use fees; (3) Delaying payment of taxes and social insurance; (4) Reducing the price of electricity, water.
The CEPIZA proposed to departments, specialized branches and the City People's Committee to promote solutions to restore production and business such as: Supporting access to soft loan packages; rescheduling of old loans; issuing tax exemption and reduction in the current period; reducing electricity and water prices; promoting the domestic market, e-commerce, transportation and delivery services with reasonable transportation costs; supporting the application of science and technology in production and business to improve labor productivity, products quality and lower product costs.
The CEPIZA also constantly promotes administrative procedure reform. The administrative procedure reforms are publicly listed on the CEPIZA’s website. At the same time, it regularly reviews and simplifies the procedures under their jurisdiction. The CEPIZA has also updated and uploaded the software for single-widow procedures, so 100% of records and documents are resolved on or before the deadline for individuals and organizations according to the current regulations.
Mr. Lu Thanh Dong, Director of Can Tho City Export Processing and Industrial Zones Authority, said, CEPIZA is always ready to welcome businesses to come to work, providing them with detailed and specific instructions to meet the highest possible efficiency.
Source: Vietnam Business Forum