Improving IP Infrastructure to Accommodate Redirected Investment Flows

10:07:46 AM | 24/11/2020

In order to catch the wave of investment capital flow, in addition to constantly improving the investment environment and enhancing public service quality, Vinh Phuc province has made great efforts to upgrade infrastructure in industrial parks.

At present, Vinh Phuc has 18 industrial parks with a total area of 5,228 ha, including nine with 1,838.75 ha established and granted permission to invest VND7,914.82 billion and US$117.42 million for infrastructure development. The occupancy rate is nearly 64%. Some industrial parks in operation such as Khai Quang, Binh Xuyen, Binh Xuyen 2, Ba Thien, Ba Thien 2 and Thang Long Vinh Phuc have completed basic infrastructure and obtained high occupancy rate.

In addition, the technical infrastructure inside and outside industrial parks has been increasingly improved to meet investors’ requirements. Some industrial parks are active to offer a clean land fund with reasonable infrastructure rental rates and create a competitive advantage over industrial zones in neighboring provinces and cities. They are very attractive to foreign investors. For industrial zones where land has not yet been compensated for site clearance, the province is urging developers to focus on compensation for site clearance and offer a clean land fund for tenants.

Currently, many large domestic and foreign companies, especially those from Japan, South Korea and Europe, such as Piaggio, Toyota, Honda, Daewoo and Sumitomo, have selected Vinh Phuc as their investment stop destination. Recently, Vinh Phuc officially granted an investment certificate to US$100-million Toto Vietnam Co., Ltd, a 100% foreign-owned manufacturer of high-class sanitary equipment in Thang Long Vinh Phuc Industrial Park. This event is not only a promising start of the 2020-2025 term but also an assertion that, with a synchronous and modern infrastructure system, Vinh Phuc is always an attractive investment destination.

In the coming time, in order to accelerate sustainable industrial development, prepare a clean land fund and catch new investment flows, the province will further encourage the development of supporting industries, and develop automobile, motorbike and electronics and high-tech industries. At the same time, the province will attract investment funds into existing industrial parks; establish new industrial parks in advantageous areas like Dong Soc and Son Loi; introduce specific policies to attract large-scale investment projects that make high value-added and high-tech products; and conduct a study on construction of an innovation center.

By Hoang Tham, Vietnam Business Forum