The Management Board of Hung Yen Industrial Parks has adopted many solutions to support businesses, improve the investment and business environment, and enhance local competitiveness. Vietnam Business Forum's reporter has an interview with Mr. Phan Truong Tam, Director of the Management Board of Hung Yen Industrial Parks.
Could you please tell us about industrial zone development in Hung Yen province? What are outstanding advantages and incentive policies for investors?
Hung Yen province has applied many policies for better investment inflows for stronger industrial development to facilitate economic restructuring where the share of industry and service is rapidly growing. In order to unlock local advantages and formulate an enabling environment for domestic and foreign investment funds according to the provincial development planning, Hung Yen planned industrial park development to facilitate all economic sectors to invest in infrastructure construction for industrial parks and build a synchronous and complete technical infrastructure for investment projects. The province achieved remarkable results in building and developing industrial zones, making positive contributions to local socioeconomic development.
Pho Noi A Industrial Park
Hung Yen planned to develop 15 industrial zones. Beside highest regulatory incentives for investors, combined with solutions for a better business investment environment, especially by reforming administrative procedures, Hung Yen province-based industrial parks have attracted many capable and experienced infrastructure developers. At present, Hung Yen province has 11 industrial parks covering a total area of 2,657.38 ha, which drew VND11,700 billion and US$300 million of investment capital, including Pho Noi A (688.94 ha), Pho Noi Textile and Garment (121.81 ha), Thang Long II (525.7 ha), Minh Duc (198 ha), Yen My (280 ha), Yen My II (97.5 ha), Minh Quang (150 ha), Kim Dong (100 ha), Sach IP (143.08 ha) and No. 5 Industrial Park (192.64 ha). Seven operational industrial parks, covering 1,881.45 ha, include Pho Noi A, Pho Noi Textile and Garment, Thang Long II, Minh Duc, Yen My, Yen My II and Minh Quang. Particularly, Thang Long is considered the most modern synchronous industrial park in Vietnam, an attractive place for many Japanese investors.
What do you think about the investment outcomes and performances of tenants in Hung Yen province-based industrial parks?
In 2021, Hung Yen province was permitted by the Prime Minister to invest in four industrial parks (expanded Pho Noi A Industrial Park by additional 92.5 ha, Sach Industrial Park by 143.08 ha, No. 3 Industrial Park by 159.71 ha and No. 5 Industrial Park by 192.64 ha) with a total area of 588 ha and a combined registered investment fund of over VND7,500 billion.
Infrastructure developers actively invested in building technical infrastructure for industrial zones to provide a synchronous ground for investment projects. In 2021, local industrial parks attracted 31 investment projects, including 14 foreign direct investment (FDI) projects and 17 domestic direct investment (DDI) projects. Total fresh and additional investment funds increased by US$611 million. By the end of 2021, Hung Yen-based industrial zones housed 486 valid projects, including 270 FDI projects and 216 DDI projects, with a total registered investment fund of US$4,923 million and VND29,318 billion. Tenants hired about 926 ha of land in industrial zones, reaching an occupancy rate of over 62.6% of rentable industrial area.
In the year, 32 new investment projects were licensed into industrial parks and employed 8,000 workers. Revenue of tenants was estimated at US$5 billion; their import value was US$1.8 billion; export value was US$2.7 billion; and their tax payment amounted to VND2,500 billion. To date, industrial parks have housed 413 investment projects, including 236 FDI projects and 177 DDI projects, accounting for 83% of valid projects. Their disbursed DDI fund reached VND23,100 billion, equaling 81.1% of total registered fund, while their spent FDI fund was US$3,850 million, equal to 80% of total registered FDI fund. 73,000 people are working at these projects.
What priority areas will the Management Board of Hung Yen Industrial Parks focus on in the coming time, sir?
In the coming time, the board will focus on supporting licensed infrastructure investors to speed up site clearance for infrastructure construction in industrial parks to provide spaces for new investment projects.
The board will synchronously and effectively draw investment capital into industrial parks, coordinate with infrastructure investors to entice and receive projects and ensure compliance with the provincial development plan. In particular, priority is to be given to large-scale investment projects empowered by advanced environment-friendly technologies, industrial supporting projects, and digital projects that will help local growth and budget revenue.
The board will speed up business support, actively grasp project implementation and tenants’ operations; timely remove difficulties and obstacles against enterprises in project implementation and ensure quick and smooth operation of projects.
It will continue to apply drastic, consistent and workable measures to prevent and control the COVID-19 epidemic; accelerate administrative reform and improve the business investment environment; strengthen information technology application in administration; effectively control administrative procedures and single-window mechanism; deepen inspection and supervision to ensure quick, accurate, effective and lawful settlement of administrative procedures.
Thank you very much!
By Vietnam Business Forum