By advancing industrial park (IP) infrastructure and boosting investment promotion, especially locally, Vinh Phuc has attracted significant foreign investment and sustained impressive economic growth, with the gross regional domestic product (GRDP) rising 7.5–7.8% annually, surpassing the national average.
Chairman of Vinh Phuc Provincial People's Committee Tran Duy Dong inspects the construction site at Song Lo II Industrial Park
Accelerating infrastructure construction in IPs
Recently, in addition to applying many open mechanisms and policies and attracting investment capital for industrial development, Vinh Phuc province has focused on accelerating infrastructure construction and development in industrial parks to create clean land to welcome a new investment wave.
With construction started in June 2023 on over 165 ha in Dong Thinh and Yen Thach communes, Song Lo II Industrial Park, invested by Vinh Phuc Infrastructure Development Joint Stock Company, has a total investment budget of over VND1,500 billion. Song Lo district authorities have actively removed difficulties in land compensation and site clearance to facilitate infrastructure investors to speed up the progress and put factories into operation soon. To date, Song Lo district has handed over 152.7 ha out of 165.6 ha to Vinh Phuc Infrastructure Development Joint Stock Company which was supported over VND471 billion for land compensation and site clearance. The remaining area that needs to be cleared is over 6.6 ha of 90 households. Besides, Vinh Phuc Infrastructure Development Joint Stock Company has invested more than VND561.5 billion to build infrastructure and compensate and clear the land.
To build Song Lo II into a model modern and standard industrial park, the investor has applied advanced technology to create a green ecosystem and meet tenants’ high standards. The company designed a synchronous technical infrastructure system, integrated a green eco-friendly space, built a modern wastewater treatment plant, and installed a solar power system to save electricity and protect the environment. As expected, Song Lo II Industrial Park will attract mechanical engineering, electronics, electrical equipment, construction materials, textile and garment, leather and footwear, cosmetics, vegetable and fruit processing and other industries. When completed and operated, Song Lo II will create jobs for about 13,000 workers.
Nam Binh Xuyen Industrial Park is designed to be the greenest, smartest, most modern industrial park in the north to entice investors of electronics, telecommunications, machinery, auto parts, medical equipment and optical devices. Recently, Vinh Phuc authorities have hosted many working sessions with the Vinh Phuc Industrial Zones Management Board, provincial agencies, the Binh Xuyen People's Committee and the investor - Nam Binh Xuyen Green Park Development Co., Ltd to remove difficulties arising from land compensation, site clearance and human resource development.
To date, 56 ha out of 290 ha of land has been cleared and over 97 ha still needs to be counted, declared and assigned to the developer and 33.7 ha of land was approved of land compensation and support. Binh Xuyen Site Clearance Council has paid for site clearance of over 70.8 ha. In the coming time, the Vinh Phuc Industrial Zones Management Board and the Binh Xuyen People's Committee will continue to accelerate land compensation and site clearance to soon have available space for the investor to build the infrastructure. The Department of Natural Resources and Environment will coordinate with relevant agencies to review, resolve and guide the settlement of the recovery of interspersed and difficult-to-cultivate land areas outside the project boundary while the investor will complete the construction design and seek the construction permit.
Mr. Vu Kim Thanh, Deputy Director of the Vinh Phuc Industrial Zones Management Board, said: As of November 15, 2024, Vinh Phuc had 17 industrial parks covering 3,146 ha, including nine operational parks (Kim Hoa, Khai Quang, Binh Xuyen, Ba Thien, Binh Xuyen II - Phase 1, Ba Thien II, Tam Duong II - Section A, Thai Hoa - Lien Son - Lien Hoa - Section II - Phase 1, and Thang Long Vinh Phuc), three under construction (Son Loi, Tam Duong I - Section 2, and Song Lo II), and five in the planning stage (Binh Xuyen II - Phase 2, Nam Binh Xuyen, Phuc Yen, Song Lo I, and Dong Soc).
According to the industrial park development plan in the Provincial Planning for the 2021-2030 period, with a vision to 2050, approved by the Prime Minister (in Decision 158/QD-TTg dated February 6, 2024), Vinh Phuc will have 28 industrial parks with a total area of 4,815 ha by 2030 and 29 IPs with 5,489.68 ha by 2050. Priority will be given to developing new IPs along key traffic routes such as Hanoi-Lao Cai Expressway, Ring Road 4 and Ring Road 5.
Accelerating FDI attraction
According to a report released by the Vinh Phuc Industrial Zones Management Board, in the first 11 months of 2024, Vinh Phuc-based industrial parks attracted 29 new foreign direct investment (FDI) projects and saw 38 existing projects to increase their investment fund, totaling US$493.06 million (new grants: US$188.43 million and increased fund: US$304.63 million), down 11% year on year and equal to 141% of the full-year plan. In the meantime, 14 new domestic direct investment (DDI) projects and seven existing DDI projects registered to invest VND4,517.3 billion (new projects: VND3,313.28 billion and increased investment from existing projects: VND1,204.02 billion), down 28% year on year and equal to 301% of the yearly plan.
As of November 15, 2024, Vinh Phuc industrial parks attracted 497 valid investment projects, including 121 domestic direct investment (DDI) projects with VND38,973.01 billion of investment capital and 376 foreign direct investment (FDI) projects with US$6.8 billion. FDI projects come from 20 countries and territories in the world, with electronics manufacturing and automobile and motorbike manufacturing accounting for 50.4% and 12.8%, respectively. Disbursed capital accounted for 60 - 65% of the registered value. IPs have created jobs for more than 142,440 workers. Basically, FDI projects are being carried out on a registered schedule.
In December 2024, the Vinh Phuc Industrial Zones Management Board expected to attract US$10-15 million from 2-3 FDI new and existing projects and VND100-150 billion from 1-2 DDI projects. The board hoped to see 2-4 more projects to go into operation and the disbursed capital was estimated to reach US$40-45 million (from FDI projects) and VND200-300 billion (from DDI projects).
In the coming time, the board will continue to strengthen administration across all areas, focusing on accelerating administrative reforms and improving the investment and business environment. It will coordinate with investors and relevant agencies to expedite site clearance for remaining areas and invest in infrastructure for operational industrial parks. Additionally, the board will monitor project progress, push for on-schedule implementation, work with delayed projects to expedite them, and assess business situations to assist tenants in overcoming challenges.
By Tran Trang, Vietnam Business Forum
Vietnamese
