Industrial Parks - An Economic Stimulus for Binh Thuan Province

What has kept 70 per cent of investors who have arrived in Binh Thuan province for opportunity exploration? Giang Cong Tuyen, deputy director of the Binh Thuan Industrial Park (IP) Administration, explained that the warm welcome and support extended by the local authorities kept the investors there.

 

Phan Thiet IP with initial success

Phan Thiet was the first IP in Binh Thuan province approved by the Prime Minister in 1998. The IP, with an area of 68 hectares and a total investment capital of VND 69 billion, was developed by the Binh Thuan Construction Material and Mineral Company. After five years’ operation, the IP’s infrastructure development was completed, meeting the demand for production and business area of investors. So far, the IP has been filled wholly with 24 projects, including 18 domestically-developed and six foreign-invested projects, which are capitalised at VND 427 billion plus US$28.56 million.  

In general, projects are small, with an average capital of VND 37 billion. Even though most of them have officially operated for between two and three years, they have gained a high year-on-year growth rate. The IP’s production value reached VND 760 billion, accounting for around 20.5 per cent of total value of the province’s industrial sector. Its export turnover was put at US$20 million, equal to 21 per cent of the province’s total value. The IP has attracted 2,400 workers. Resettlement and support service areas for the IP have been built.

After these initial successes, the province has decided to expand the IP by 55.7 hectares. So far, compensation and site clearance have basically been completed. It is expected that between 50 and 60 per cent of infrastructure facilities will be developed in 2006, so as to fill its entire area in 2007. 

 

At the same time, Binh Thuan has planned other new IPs. One of them is the Ham Kiem IP in Ham My and Ham Kiem communes, Ham Thuan Nam district, which is near the national highway 1A. Located 9.5 kilometres far from Phan Thiet city and 190 kilometres from Ho Chi Minh City, the IP has a total area of 579 hectares. It consists of the Ham Kiem 1 IP with 143 hectares developed by Hoang Quan Consultancy, Trade and Real Estate Service Company, and the Ham Kiem 2 IP with 436 hectares developed by the Binh Tan Consumer Goods Production Company (Bita’s).

Since the Prime Minister approved the building and supplementing plans of IPs nationwide through to 2010, the province has created favourable conditions for enterprises to develop detailed plans and projects. Accordingly, the province has developed master plans for the urban area of Nga Hai and the residential, service and trade areas of the Ham Kiem IP with a total area of 230 hectares. These areas have called 50 investors who have registered for around 160 hectares. It is reported that the construction of the IPs of Ham Kiem 1 and 2 will start late in the second quarter. These IPs will concentrate on completing infrastructure development to attract investment in between three and four years, so it will be 100 per cent filled in 2009. 

 

In order to receive Vietnamese and foreign investors from the key southern economic region, Binh Thuan will build the IP of Tan Duc, 70 kilometres from Phan Thiet city, 130 kilometres from Ho Chi Minh City and 100 kilometres from Bien Hoa city. The IP’s area in the first phase is 750 hectares. In the second phase, it will be expanded to 1,500 hectares. The construction of the IP is expected to start in 2008.

The province will further exploit advantages of its abundant natural resources on the seashore of Binh Thuan, with the oil fields of Su Tu Den (Black Lion), Su Tu Vang (Golden Lion), Su Tu Nau (Brown Lion), Su Tu Trang (White Lion) and Ruby. To develop gas-electricity-nitrogenous fertiliser, petro-chemical and post-oil industries, Binh Thuan has planned the industrial and service complex of Son My, consisting of two IPs, Son My 1 developed by the Urban and Industrial Zone Development Investment Corporation (IDICO) and Son My 2 developed by the Sumitomo Group.

All the IPs have received support from Binh Thuan province. Accordingly, they have been given priority policies, support in site clearance and compensation and infrastructure development outside their fences. The province has helped the IPs in promoting and introducing potential and procedures. A warm welcome by the province has kept 70 per cent of investors who arrived in the province for opportunity exploration.