Developing Industrial Zones to Create Driving Force for Investment Attraction

1:42:39 PM | 13/6/2022

Industrial development is defined by Hau Giang as one of four development pillars in 2021 - 2025 and beyond. Accordingly, the province advocates developing modern industrial zones to serve export, agricultural product processing and logistics to create more advantages to entice investors. This is also a solid momentum to gradually turn Hau Giang into an "industrial hub" of the Mekong Delta.

The following is the interview of Vietnam Business Forum with Mr. Nguyen Phong Minh, Director of Hau Giang Industrial Zones Authority. Ngoc Tung reports.

How do you think about industrial zone development in Hau Giang province in the past time as well as their roles and contributions to local socioeconomic development?

Hau Giang is developing two large-scale industrial parks and three smaller industrial clusters with a total area of 800 ha and 355 ha of Song Hau Power Center. Industrial zones have attracted many large domestic and foreign companies such as Minh Phu Seafood Processing and Exporting Group, Tan Hiep Phat Beverage Group, Masan Group, Vingroup and Song Hau Thermal Power Plant, thus completing the "picture" of industry, enabling economic restructuring, employment and stabilizing and raising incomes for local workers.

In 2021, industrial zones attracted 14 investment projects with a total registered capital of VND1,630 billion, paid VND939.8 billion the State Budget; generated new jobs for 4,689 workers, and helped the industry make up 50-60% of the province's GRDP.

In the first quarter of 2022, Hau Giang Industrial Zones Authority received 13 investors, including three investors intending to invest in industrial park infrastructure. To date, three projects have completed applications for investment permission. Cumulatively, industrial zones are housing 72 projects, including 70 manufacturing projects and two infrastructure development projects. Their domestic investment value totaled VND74,299 billion while foreign investment fund was US$3.8 billion. Currently, 52 projects are in operation.

The projects created industrial production value of VND2,590 billion, import value of US$28 million, export value of US$47 million, and tax value of VND110.6 billion. They hired 25,000 employees.

Industry is defined as one of four development pillars of Hau Giang province, especially processing industry and renewable energy. To effectively implement this goal, how has the province built plans for industrial infrastructure development and investment attraction from now to 2025?

In the medium-term public investment plan for the 2021 - 2025 period, the Mekong Delta will invest in many key projects such as Can Tho - Ca Mau Expressway and Chau Doc - Can Tho - Soc Trang Expressway. Besides, national highway upgrading and expansion projects are also being implemented. These projects not only remove traffic congestion but also create an important impetus for localities to receive the investment wave.

Being one of leading lights in investment attraction and directly benefiting from the above projects, Hau Giang will continue to be an appealing destination for investors. Therefore, the need to establish and develop new industrial zones is very urgent.

Furthermore, according to the resolution of the Provincial Party Congress (2020-2025 term), Hau Giang province will give priority to boosting industrial development and mobilizing all resources for stronger industrial development, especially processing, manufacturing and renewable energy production.

In order to help the province achieve this goal and create momentums for investment attraction, in the 2021-2030 period, Hau Giang Industrial Zones Authority will advise the province to establish eight industrial zones with a total area of 2,233 ha, including four with a combined area of 784 ha to be formed in the 2021-2025 period: Dong Phu (120 ha), Dong Phu - Phase 2 (234 ha), Song Hau - Phase 2 (220 ha) and Tan Hoa (210 ha).

In order to create a clean land fund for new investment projects, the authority will focus on planning and building complete infrastructure for industrial parks, speeding up site clearance, and allocating land to investors to launch their projects. In 2022, the province will balance and arrange site clearance for all the 46-ha remaining area of Song Hau Industrial Park (phase 1) and 25 ha of Tan Phu Thanh Industrial Park. After the site clearance, the land will be handed over to investors.

Moreover, the agency will actively coordinate with relevant bodies to carry out procedures for planning and establishing industrial zones in 2021-2030 and submit them to the Government and the Prime Minister for approval to provide an available land fund for an expected wave of foreign investors entering into Vietnam.

As an administrator of industrial zones in the province, what solutions will the authority take to support businesses and improve the outcome of investment attraction in the coming time?

With the view that "the success and growth of enterprises is also the sustainable development of the province", Hau Giang Industrial Zones Authority will continue to accompany and support investors to complete and operate their projects quickly and efficiently.

According to the draft project for industrial zone development in 2021 - 2030, with a vision to 2050 made by Hau Giang Industrial Zones Authority, Hau Gang province plans to develop 13 more industrial zones with an area of 6,148 ha. The province will give priority to attracting processing, manufacturing and clean production industries that cause little environmental pollution such as mechanical engineering and mechanical assembly; electrical and electronic equipment; textile - garment and footwear; agricultural processing, food and consumer goods; medical equipment, waste treatment, supporting industries and services for industrial production.

Administrative procedures for projects invested into industrial zones are settled under the single-window mechanism. All are carried out quickly and effectively through the single-window section of Hau Giang Industrial Zones Authority. Currently, 100% of administrative procedures within its jurisdiction are processed in time, even well before the due date.

In addition, every year, the authority visits and works with tenants, strengthens dialogues with them to promptly grasp their difficulties and obstacles for effective solution, thus enhancing satisfaction and trust of businesses and investors.

To woo more investors, the agency has actively and flexibly implemented solutions for on-site investment promotion and online investment promotion by actively taking part in trade fairs, seminars and conferences on investment promotion in 2022 while effectively approaching potential partners from Japan, South Korea, Taiwan, Hong Kong and other countries.

The success of investors in the province will be the most important and impressive messages we want to send to potential investors.

Thank you very much!

Source: Vietnam Business Forum