Industrial Zones: Driving Force for Hung Yen Development

10:36:01 AM | 24/7/2023

Since the first industrial park was established two decades ago (in 2003), Hung Yen Industrial Zones Authority has constantly tried its best to promote industrial zone development and support tenants to work effectively to create a driving force for provincial development. Mr. Pham Truong Tam, Director of the authority, gives an exclusive interview on this issue to our reporter.

The perspective of Industrial Park No. 5 in Hung Yen province

Could you please brief us about the overview picture of Hung Yen industrial zones?

Hung Yen province planned to build 17 industrial parks (totaling 4,395.43 ha of land), including 11 industrial parks (2,873.38 ha in total) licensed for construction with a combined investment value of VND14,395 billion (US$630 million) and US$397.7 million as follows:

- Eight operational industrial parks have attracted investment projects: Pho Noi A, Pho Noi Textile and Garment, Thang Long II, Minh Duc, Yen My, Yen My II, Minh Quang, and Clean Industrial Parks. They are currently accommodating 521 valid projects (287 FDI projects and 234 DDI projects) with a total registered capital of US$5.7 billion and VND33,000 billion (US$1.43 billion). Their rentable industrial land for lease is 1,062 ha and their occupancy rate is 50.3%. 446 projects have been brought into operation (249 FDI projects and 197 DDI projects) with a combined disbursed value of US$4.3 billion and VND27,000 billion and generated 78,000 jobs. In 2022, they raked in the gross revenue of US$5.5 billion; the export value of US$3.1 billion, the import value of US$2 billion and paid VND2,700 billion to the local budget (VND1,300 billion in the first six months of 2023).

- Nine industrial parks are under construction: Kim Dong, Tan Dan, Ly Thuong Kiet, No. 01, No. 03, No. 5, No. 6, Tho Hoang and Tan A Dai Thanh.

What are outstanding marks of the 2-decade construction and development of Hung Yen industrial parks?  How has the Hung Yen Industrial Zones Authority performed and promoted its roles?

The Hung Yen Industrial Zones Authority was established under the Prime Minister's Decision 183/2003/QD-TTg dated September 8, 2003. The authority manages industrial zones by law.

Over the past 20 years, the industrial park investment and development has produced many remarkable outcomes and played an important role in accelerating economic restructuring, enhancing production capacity, upgrading technology, increasing export value, raising fiscal revenue, developing human resources, creating more jobs and stable income for many local workers.

Well-located industrial parks have invested in synchronous infrastructure construction as planned to ensure smooth connectivity with other facilities. Construction planning management and environmental protection are focused right from planning, construction and operation management stages to meet sustainable development goals and requirements.

The single-window mechanism has attributably helped facilitate administrative reform and improve the investment and business climate. Investment inflows have risen in both value and quality. The province attracted only 30 projects (5 FDI projects and 25 DDI projects) with a total registered capital of US$120 million in 2003. After 20 years, the province drew 491 projects (16 times more) with a total capital of US$7.1 billion (55 times more).

Licensed projects are involved in mechanical engineering; metallurgy; machinery and equipment; automobile and motorcycle; electrical equipment; electronics; computer; optical products; rubber and plastic; food; animal feed, textile and garment; leather and footwear; packaging and other industries. Foreign investors in the province come from 22 countries and territories, with Japan being the largest, followed by South Korea, China, the USA, the UK, Italy, Germany and Switzerland.

Investors with giant high-tech projects include Toto (US$403 million), Nippon Mektron (US$300 million), Kyocera (US$385 million), Hoya (US$214 million) and Ton Hoa Phat (VND4,300 billion).

FDI projects act as a bridge for domestic enterprises to approach and apply modern industries from developed countries, thus enabling the latter to upgrade technologies, boost production capacity and contribute to local industrial development.

Construction site of an industrial park

How did the authority advise and coordinate with relevant bodies to effectively implement the project on social housing development for workers inside and outside industrial zones in the province?

Currently, 78,000 workers are working for tenants in Hung Yen province-based industrial zones. Migrant workers account for 40% (or 31,200 workers) and they need housing. To meet their accommodation needs, the Executive Board of the Provincial Party Committee issued Resolution 14-NQ/TU dated October 8, 2021 on the Social Housing Development Project for workers inside and outside industrial zones in Hung Yen province. On this basis, the Provincial People's Committee launched Action Plan 152/KH-UBND dated September 9, 2022 on implementation of Resolution 14-NQ/TU of the Provincial Party Committee. The plan aims to provide accommodations for 50% of workers by 2025.

To ensure housing for workers, the Hung Yen Industrial Zones Authority urged industrial park infrastructure investors, particularly stable operators of labor-intensive parks, to research, survey and ask the Provincial People's Committee for land fund for housing construction. To date, some investors of industrial parks planned construction and development of worker accommodation projects like the worker housing project in Pho Noi A Industrial Park and affordable housing project for low-income earners in Yen My Industrial Park II planned by Hoa Phat Urban Construction and Development; and the worker housing project in Pho Noi Textile and Garment Industrial Park planned by Pho Noi Textile and Garment Infrastructure Development Joint Stock Company. In addition, some projects are being studied, surveyed and planned for construction.

Could you tell us how potential advantages and development direction of industrial zones are positioned and expressed in the Hung Yen Plan for the 2021 - 2030 period, with a vision to 2050. To make Hung Yen and its industrial parks more attractive to investors, what are the "bottlenecks" that the authority is seeking to remove?

Hung Yen province is establishing the Hung Yen Plan for the 2021 - 2030 period, with a vision to 2050, with priority given to developing conveniently located industrial parks for easy traffic connectivity. This is a great and important driving force for the formation and development of centralized industrial zones, thus helping turn Hung Yen into a modern industrial province before 2030. To make industrial zones more attractive to investors, the Hung Yen Industrial Zones Authority will continue to implement the following solutions and tasks:

- Attracting investment projects in line with the province’s socioeconomic development master plan, local potential advantages, local infrastructure as well as national security and defense requirements.

-Selecting financially capable, experienced investors to build and operate infrastructure of industrial parks to better woo investors.

- Closely coordinating with investors of industrial park infrastructure to draw secondary investors into industrial parks, selectively attracting and prioritizing large-scale energy-effective, environment-friendly investment projects in line with the province’s master plan.

- Aligning investment attraction with environmental protection and sustainable development and with socioeconomic development goals.

- Enhancing the performance of the single-window service at the Hung Yen Industrial Zones Authority and providing quick and accurate service for investors; effectively applying regulations on coordination with other agencies to deal with enterprises’ requirements.

- Speeding up administrative reform, focusing on reducing and simplifying administrative procedures; fostering information technology application, digital transformation towards building digital government and e-government; building a strong contingent of professional civil servants with good qualifications, virtues and ethics.

- Accelerate social infrastructure investment and development to meet development requirements of industrial zones; mobilizing resources for housing investment and development for workers in industrial parks, with consideration taken to their spiritual life and wellbeing.

Thank you very much!

Source: Vietnam Business Forum