Dong Thap's Industrial Parks: Attractive Destinations to Investors

9:43:06 AM | 27/9/2005

Dong Thap province has attracted nine more investment projects (five are under construction) since it held a meeting on calling for investment early in the second quarter of this year. This is a good signal for the province to take full advantage of its potential for economic development.
Attractive investment policies
By the end of August 2005, Dong Thap province had licensed 29 investment projects on a total area of 61 hectares. Two of these are foreign-invested projects producing industrial products and processing agriculture produce with registered capital of VND955 billion (US$60.4 million) and US$1.3 million respectively. Ten of the 29 projects have begun operation and the remainder are under construction.
Currently, Dong Thap has three industrial zones and three industrial parks with a total area of 862 hectares. Sa Dec Industrial Park is developing its first phase on an area of 79 hectares with nearly all that area already rented. Therefore, the province is preparing to expand the park with an additional 112 hectares.
Tran Quoc Toan Industrial Park lies closely to national road No. 30 and is adjacent to Cao Lanh Town. It has a port that can receive 3,000-tonne vessels. The industrial park is 130 kilometres from Ho Chi Minh City and is in under the first phase of development on an area of 60 hectares.
Song Hau Industrial Park is located on Tan Thanh Commune, Lai Vung District. It is 19 kilometres from Sa Dec Town and 25 kilometres from Can Tho seaport, making it favourable for goods transport via waterways. The industrial park is in the first phase of development on an area of 60 hectares.
In addition to the construction of industrial parks, Dong Thap province has also issued open policies to attract investors. Accordingly, when investing in Dong Thap’s industrial parks, investors will enjoy the province’s incentives in addition to those regulated by the government. The province’s incentives include low prices for renting land at industrial parks: US$0.3-0.75/square metre per year. If investors prepay land rental for years they will be discounted 1 per cent for each year prepaid but not exceeding 25 per cent (discount). Investors can also pay US$6-15 for renting a square metre at Dong Thap’s industrial parks for the life span of their projects. Fees for using infrastructure (excluding fees for wastewater) are US$0.25 per m2 per year. Investors will be exempt from the fee for the first year after their construction work begins. Projects with investment from US$3-5 million or using more than 500 labourers will be exempted from land lease for the first four years. Particularly, if enterprises require designs for their facilities from the Industrial Park Development Company, they will receive a 30 per cent discount.
Syndicated measures
Recently, Dong Thap has approved a development strategy for industrial parks to 2010. Accordingly, Sa Dec Industrial Park will be expanded to 323 hectares, Tran Quoc Toan Industrial Park to 180 hectares and Song Hau Industrial Park to 400 hectares.
The province will provide incentives for investors investing in some fields such as fisheries processing; consumption goods; manufacturing and assembling high quality mechanical products; construction material production; and manufacture of electronic products. In particular, the province will give incentives for investors of projects equipped with modern technologies and those which are environment friendly.
To meet its targets, Dong Thap province will focus on resolving current problems such as compensation for site clearance; completing a segment of national road No. 30; and applying “one-door” administrative procedures and enhancing the speed of building infrastructure at industrial parks.
According to head of the Managing Board of Dong Thap’s Industrial Parks Vo Van Thoai, from now to 2010 the province will focus on completing facilities for the province’s industrial parks. The province will attract more investors to industrial parks and will build security systems and provide outside-fence services for investors in those areas.
Hoa Binh
Management Board of Dong Thap’s Industrial Parks
No. 466 Nguyen Sinh Sac, Ward 1, Sa Dec Town, Dong Thap Provicne
Tel: 067.865471 – 067.863086
Fax: 067.865471

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