Thai Binh has undergone dramatic change, from a purely agricultural province specialized in rice cultivation to a leading attractive investment destination in the north, with its economic restructuring driven by a rapidly increasing share of industry and services. This achievement is importantly contributed by economic zones (EZs) and industrial zones (IZs) in investment promotion and attraction. To find out more, our reporters have an exclusive interview with Mr. Pham Xuan Han, Deputy Director of the Management Board of Thai Binh Economic Zones and Industrial Zones.
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What do you think about the recent development of EZs and IZs in Thai Binh province? What are the significant figures that illustrate the efforts of investment promotion and attraction?
The Management Board of Thai Binh Economic Zones and Industrial Zones, formerly the Management Board of Thai Binh Industrial Zones, was established on January 29, 2004. From 2004 to 2017, the board advised the Provincial People's Committee to build, amend and supplement the industrial zone network planning, submit it to competent authorities for approval and ratify seven industrial parks with a planned area of 1,228.20 ha. At present, Thai Binh province has 10 industrial parks with a total area of 2,560 ha, an increase of 2.1 times from 2017. Notably, Lien Ha Thai Industrial Park has become a model of technical infrastructure investment and performance in investment attraction because it has drawn many world-leading giant firms.
Carrying out the direction of the Provincial People's Committee, the board has actively coordinated with relevant agencies, localities and investors to boost investment promotion and attraction by consulting on the organization of investment promotion delegations and opening conferences to announce the master plan of Thai Binh province and investment promotion in 2024. Particularly, the board has focused on attracting investors from developed countries like Japan, South Korea and the EU; giving priority to attracting large corporations with strong prestige and financial capacity; attracting projects with advanced technology, high added value and deep participation in global value chains, projects engaged in energy, mechanics, processing and manufacturing, pharmaceuticals, electricity and electronics, and supporting industries.
With the above efforts, in the first seven months of 2024, EZs and IZs awarded new or revised investment licenses to 43 projects with a total registered investment capital of VND5,354.3 billion, accounting for 57% of the total investment value in the province, five times higher than that in the same period of last year. Among them, 17 new projects registered to invest VND3,771.5 billion. They largely focus on manufacturing electric, electronic and mechanical component manufacturing.
In foreign direct investment (FDI) alone, in the first seven months of 2024, EZs and IZs granted new and revised investment licenses to 34 projects with a total investment fund of US$187 million, accounting for 67% of FDI in the province in the period, 4.2 times higher than that in the corresponding period of 2023. Among them, 14 new projects registered to invest US$138 million.
Leaders of the Management Board of Thai Binh EZs and IZs are actively supporting investors and businesses in exploring investment opportunities
After 20 years of construction and development, what attraction makes infrastructure investors and secondary investors invest a lot in EZs and IZs in the province?
Currently, the province has available land fund for 10 industrial parks and 49 industrial complexes in eight districts and cities. Especially, Thai Binh Economic Zone has a total area of over 30,000 ha, including 21 industrial parks, industrial - urban - service parks with a total planned area of 8,020 ha
Traffic infrastructure is conveniently connected to major cities such as Hanoi, Hai Phong and Quang Ninh with coastal roads, Ninh Binh - Hai Phong Expressway, National Highway 37, National Highway 10, National Highway 39 and other traffic routes. The distance is about 50 km to Lach Huyen Port (Hai Phong), about 35 km to Cat Bi International Airport (Hai Phong), about 140 km to Noi Bai International Airport (Hanoi), and about 230 km to Mong Cai Border Gate (Quang Ninh).
In addition, the infrastructure for electricity, water and telecommunications is planned and built synchronously. In the economic zone, there are currently two thermal power plants with an installed capacity of 1,800 MW in operation and a 1,500-MW LNG thermal power plant, expected to generate electricity in 2028. Transformer stations and the power grid are planned and built synchronously to ensure sufficient electricity supply for the economic zone. Thai Binh province also has a tap water supply system to all communes and a convenient and smooth telecommunications infrastructure system.
Lien Ha Thai Industrial Park - a leading industrial park in the Thai Binh Economic Zone
Moreover, the province has abundant human resources. It has a population of about two million people, of which 1.2 million people are at the working age. And, some two million Thai Binh people are living in foreign countries and other localities in Vietnam and they are ready to return to their homeland to work if there is a suitable treatment regime.
In particular, Thai Binh Economic Zone offers the highest incentives by law. The province also supports vocational training costs, capped at no more than VND5 million per worker.
Besides the above factors, the attraction of EZs and IZs also comes from the effort of the government and the Management Board of Thai Binh Economic Zones and Industrial Zones to speed up administrative reform. In addition to its specialized departments, the board established a consulting panel and a business and investor support center to assist companies and investors in site clearance and licensing procedures when they invest in the province. Every month, meetings invite relevant agencies to listen and propose solutions to remove difficulties for businesses. Large-scale projects are fully supported with licensing procedures.
Furthermore, administrative procedures are streamlined to reduce the time and cost for businesses, with some procedures being resolved within the current day. At present, among 50 administrative procedures under the authority of the board, 42 are at the provincial level, streamlined to reduce 15% of information to be declared when being performed online, with six procedures relating to construction and three procedures relating to public management. In the first six months of 2024, the board received 130 records (13 rolled over from the previous period and 117 new records: 110 submitted online and seven submitted in person). A total of 119 records were settled in time, with no left overdue.
Along with existing advantages, the aspirations of leaders and government apparatus at all levels make Thai Binh a reliable and attractive destination for investors in the future.
To achieve the goal of making Thai Binh one of industrial development centers of the Red River Delta by 2030 and have a modern economic structure with industry as the main driving force for growth, what solutions will the board advise and implement in the coming time?
Industry is defined as one of four growth pillars of Thai Binh. The province advocates developing modern industry with advanced technology and high added value; deeply and comprehensively participating in global production networks and global value chains, and promoting potential strengths to make Thai Binh one of industrial and energy development centers of the Red River Delta.
To realize this goal, the board will continue to perform assigned tasks: Strengthening communications on policies for EZ and IZ development; monitoring and urging investors to quickly construct IZ infrastructure after the land is handed over; improving the effect of industrial land use, environmental management and planning. The board will speed up the progress of social housing and worker housing projects; and prepare necessary conditions, especially infrastructure, land and human resources, to meet the needs of investors.
The board will promote investment, improve the open and favorable investment environment; enhance the capacity of employees and accelerate administrative reform, especially helping investors to settle administrative procedures in the fastest time.
At the same time, the board will strengthen inspection and guidance on implementation of legal regulations for enterprises; and care and ensure legitimate rights and interests of workers to ensure sustainable development of tenants and industrial zones.
Thank you so much!
Ha Thanh (Vietnam Business Forum)
Vietnamese
