Intensifying Business Support to Attract Sustainable Investment

9:58:54 AM | 23/11/2020

After 30 years of developing industrial and economic zones, Vietnam has attained many remarkable achievements in attracting investment and promoting industrial production development, trade growth, import-export development and employment generation.

Key industrial parks and economic zones

Industrial parks and economic zones have increasingly affirmed their backbone role in the economy and helped improve the business environment and enhance competitiveness. According to the Ministry of Planning and Investment, by the end of September 2020, Vietnam had 366 industrial parks (including those in coastal and border economic zones), covering a total land area of nearly 113,000 ha, of which about 73,500 ha (accounting for about 65% of total land area), is rentable industrial land. Industrial parks are available in 61 provinces and cities, mainly concentrated in key economic regions to tap local geographic advantages and economic development potential.

The largest industrial parks and economic zones include Phu Nghia (Hanoi), Binh Xuyen (Vinh Phuc), Nam Son - Hap Linh (Quang Ninh), Long Hau (Long An), Becamex Binh Duong, and Saigon - Nhon Hoi.

Phu Nghia Industrial Park, 670 ha, has a synchronous and modern social infrastructure. It is not difficult to understand why this is always considered a leading industrial park in the north. After just a short time of operation, with a synchronous modern technical and social infrastructure system, it attracted dozens of domestic and foreign enterprises. Currently, Phu Nghia provides free procedures for applying for investment licenses and land-use rights certificates, offers full information on legal advice, investment advice, business establishment, partner recommendation and cooperation.

Long Hau Industrial Park is always a top industrial park in Vietnam. Many domestic and foreign manufacturers have chosen it as an investment destination. Not only possessing a convenient location for reaching key economic zones in the south, Long Hau also helps tenants recruit good human resources.

Nam Son - Hap Linh Industrial Park, 800 ha, lies near to Que Vo Industrial Park, Bac Ninh province. Successfully invested by KBC and endowed with easy access to Hanoi City, Noi Bai Airport, Hai Phong Port (Hai Phong City), Cai Lan Port (Quang Ninh province), Huu Nghi Border Gate, it is very attractive to foreign investors, especially vendors of world-leading corporations.

Invested by Saigon - Nhon Hoi Industrial Park Joint Stock Company (SNP), the 630-ha Saigon - Nhon Hoi Industrial Park is located in Nhon Hoi Economic Zone, Binh Dinh province. Lying in the central key economic region with a lot of potential and advantages for development investment, Binh Dinh province in general and KCNA in particular is an important exchange hub for the South Central Coast, the Central Highlands, Northeast Cambodia, Southern Laos and Central Thailand.

Viet Hoa - Duc Hoa 3 Industrial Park lies in the hub of industrial parks of Long An province, adjacent to Ho Chi Minh City, where the traffic system is conveniently and smoothly accessible to provinces in the region to form development momentum for this place. This industrial park has many supportive policies for investors.

My Phuoc 3 Industrial Park, covering nearly 1,000 ha, is home to investors engaged in industrial park infrastructure investment and construction, residence construction, transport infrastructure construction, securities, finance, insurance, banking, construction, commerce, real estate, services, and telecom - information technology.

Lying in the northwest of Ho Chi Minh City and facing National Highway 22, Tan Phu Trung Industrial Park has a convenient traffic system easily accessible to major economic regions. The 542-ha general industrial park provides free procedures for investment certification and other legal procedures.

Becamex Binh Phuoc Industrial Park, 1,993 ha, lies on an important traffic route linked to many large industrial parks in Binh Phuoc province and neighboring provinces. Investing in Becamex Binh Phuoc, businesses will enjoy many incentives and advantages such as strategic location for industrial development, convenient transportation and circulation of goods. Lying adjacent to national highways 13 and 14 and having well-built infrastructure, this facility offers many incentives for tenants.

Sustainable investment attraction

In fact, over the past 30 years, economic zones and export processing zones are still drawing investment flows. Industrial parks and economic zones across the country attracted about 517 foreign-invested projects with US$8.5 billion in the first nine months of 2020, bringing total projects to 10,009 and gross registered funding to US$197.8 billion. Of the sum, the disbursed funds accounted for 70%.

Accumulatively, tenants in industrial parks and economic zones reported revenue of about US$135.7 billion in the first nine months of 2020, down about 3.5% year on year. They earned US$10.1 billion from exports, up about 0.7% year on year. They paid VND79.8 trillion in the period, up 1% year on year. They employ about 3.83 million workers.

To achieve the goal of accommodating sustainable high-quality FDI, industrial parks and economic zones are reserving clean land, supporting investment procedures and offering many incentives to businesses. For example, Saigon High-Tech Park (SHTP) has abundant high-quality human resources, especially research and development (R&D) engineers and skilled workers. Ho Chi Minh City also prioritizes attracting investment from innovative businesses with advanced governance capacity; and encourages investment into growth-driven industries with strong competitiveness such as high tech and sci-tech fields. The city intensified direct dialogues between businesses and the city government, launched solutions to deal with problems for businesses, and hosted investment promotion conferences to lure investors.

According to the development strategy, industrial parks and economic zones will selectively attract investment and woo investors into four key industries using advanced technologies and registering capital-intensive fields like mechanical engineering, electronics, chemicals, rubber - plastics, and food processing. Besides, many industrial parks and economic zones will restructure and adapt to new models to woo more quality investors, give priority to investors employing modern technology and generating high added value, increase export capacity, and generate foreign currency income.

By Huong Giang, Vietnam Business Forum

Forthcoming Events