Assigned to administer industrial zones and support industrial park development by Vinh Phuc province, the Vinh Phuc Industrial Zones Management Board always upholds a high sense of responsibility, innovation and effort to fulfill its tasks, strongly attracts domestic and foreign investment capital to Vinh Phuc province; and actively contributes to making Vinh Phuc a modern industrial province.
CNCTech in Thang Long 3 Industrial Park, Vinh Phuc province
In the first quarter of 2023, Vinh Phuc province-based industrial zones continued to achieve good results in investment and business attraction. Regarding investment promotion, the Board licensed six new projects and replaced investment licenses to 11 existing projects with a combined registered investment capital of US$174.8 million and VND979.1 billion (US$45 million). Specifically, six new FDI projects registered to invest US$65.21 million and 10 existing FDI projects registered to add US$109.59 million to their investment fund while one domestic project added VND979.1 billion, an increase of 23.88 times over the same period in 2022 and equal to 33% of the plan in 2023. The licensed FDI value in the first quarter reached 43% of the full-year target (US$350 million) while the domestic investment value reached VND979.1 billion meeting 33% of the plan (VND3,000 billion). These signals heralded a strong performance this year.
At the same time, investment projects were carried out in a strict and methodical manner. As of March 10, 2023, local industrial zones housed 390 projects in operation (320 FDI projects and 70 domestic projects), accounting for 86.5% of total investment projects. Among 61 projects that have not yet been put into operation, 10 projects are installing machinery and equipment, accounting for 2% of total projects; five projects are under construction and site clearance, accounting for 1.3% of total projects; 42 newly licensed projects are conducting necessary procedures, accounting for 9.3%; and four FDI projects are rescheduling execution progress and completing bankruptcy procedures, accounting for 0.9%.
Slowing global economic growth, consumption contraction and high interest rates are exerting a negative impact on manufacturers of electronics, apparels, steel, construction materials and mechanical products in the province. With many solutions to boost domestic production and consumption, expand export markets, connect Vietnamese manufacturers with foreign suppliers, stimulate domestic demand and connect product consumption, first-quarter business performances of tenants in industrial zones remained stable, with higher revenue, export value and tax payment than a year-ago period. Specifically, FDI firms reported an estimated revenue rise of 15% year on year to US$2,847.73 million, the export value growth of 12% to US$2,037.66 million and tax payment expanding 10% to VND1,772.15 billion. Domestic companies raked in an estimated revenue of VND3,811.98 billion, up 6%; the export value of VND300.35 billion, up 332%; and the tax payment of VND125.2 billion, up 5%.
Also in the first quarter of 2023, tenants in industrial zones employed 3,841 new workers, bringing their number to 131,871 people as of March 10, 2023. Local workers accounted for 73,966, or 56.1% of the total.
Infrastructure construction investment management was effectively carried out. At present, the province has 16 licensed industrial zones which cost VND17,536.39 billion and US$212.53 million for construction. Environmental management and fire safety in industrial zones are strictly implemented to ensure safety and stable production for tenants.
With the working motto of "Accompanying businesses", the Vinh Phuc Industrial Zones Management Board has effectively administered local industrial zones. Especially in administrative reform, the Board continues to settle administrative procedures under the single-window mechanism. As a result, up to 99.2% of administrative procedures were solved in time; all investment procedures were declared online on the national investment information system; all administrative procedures on labor were carried out quickly for businesses. Complaints from companies were answered in time.
Promoting its achievements, in the coming time, the Vinh Phuc Industrial Zones Management Board will continue to uphold the spirit of solidarity, innovation, determination and effort to perform its tasks and become a reliable address for domestic and foreign investors.
By Tran Trang, Vietnam Business Forum