HAI PHONG DEPARTMENT OF PLANNING AND INVESTMENT
HAI PHONG DEPARTMENT OF PLANNING AND INVESTMENT
In the context of global investment flows shifting after the pandemic, competition with developing countries in attracting foreign direct investment (FDI) in general and in industrial parks is increasing, which has set new requirements for the development of the industrial park in the future…
This fact is posing a problem to recognize and re-evaluate the suitability and effectiveness of current industrial park models.
Development but not close to actual needs
The formation and development of industrial parks in Vietnam over the past time is considered to have created conditions to attract a large amount of investment capital for industrial development and socio-economic development.
According to the Ministry of Planning and Investment, by the end of May 2021, 394 industrial parks have been established with a total natural land area of about 121,900ha.
VSIP Hai Phong Urban Industrial Park. (Photo: Danh Lam/VNA).
Of the 394 established industrial parks, 286 are operating with a total natural land area of about 86,000 hectares, industrial land area of about 57,300 hectares, and 108 industrial parks under construction. with a total natural land area of about 35,900 ha, industrial land area of about 23,600 ha.
Statistics show that investment capital sources for implementation include: investment capital on technical infrastructure of industrial parks and functional zones in economic zones and investment capital of projects in industrial parks and economic zones accounts for about 30% of the total investment capital of the whole society; in which, for foreign investment capital, industrial parks and economic zones nationwide have 10,853 valid production and business projects of foreign investors with a total registered capital of about 228.4 billion USD; realized investment capital reached about 69.6%.
In addition, there are 10,186 valid production and business projects of domestic investors with a total registered capital of about 2.53 million billion dong; realized investment capital reached about 45.4%.
Not only attracting capital, industrial parks and economic zones also contribute significantly to the state budget; create more jobs for workers; production of many domestic consumer goods and highly competitive export products…
In some localities, the rate of state budget revenue in industrial parks and economic zones accounts for over 60% of the total local state budget revenue, such as: Quang Nam, Quang Ngai, Hai Phong…
In the 2016-2019 period, industrial parks and economic zones have paid over 400,000 billion VND to the state budget.
Assessing the contribution of industrial parks and economic zones in Vietnam over the past 30 years, Deputy Minister of Planning and Investment Tran Duy Dong said that the formation of industrial parks and economic zones has had an impact spread to other areas of the economy, contributing to promoting economic restructuring. At the same time, accelerate the process of industrialization and modernization of the country; strongly develop the industry, contributing to bringing Vietnam step by step to join the global production value chain…
Along with that, the development of the model of industrial parks and economic zones also actively contributes to perfecting institutions, improving the business investment environment, and encouraging the renewal of administrative procedures.
However, Deputy Minister Tran Duy Dong said that the development of industrial parks and economic zones in recent times has not been sustainable, revealing a number of limitations and limitations. That is the planning for the development of industrial parks and economic zones, which has not yet clearly shown the strategic and overall vision. In some places, the planning and development of industrial parks and economic zones is not close to the development needs; ability to attract investment, not sustainable and balanced in terms of economy, society, environment…
Mr. Phan Huu Thang, former Director of Foreign Investment Department, Ministry of Planning and Investment, said that the development model of industrial parks is multi-sectoral and multi-field with development resources mainly based on mining. land potential, has not really created large-scale production clusters to increase the competitiveness of industrial production industries, especially Vietnam’s processing and manufacturing industry.
Ms. Vu Thu Hang, sales director of TNI Holdings Vietnam, said that most industrial parks now operate according to the traditional model, but now there are a few investors who have experimented and succeeded with the model of urban industrial zone.
According to Ms. Vu Thu Hang, the most important service urban industrial park development is still the cohesion and support interaction.
“Another issue to be considered is the current hot spot for infrastructure and site clearance investors. With the huge land bank of the industrial park, we are required to compensate in stages, as well as divide it into parts. But, because of the current legal framework as well as the process of compensation and clearance, there are still many obstacles, leading to the delay of the process. Prolonging the site clearance process and legal procedures to ensure a clean land fund for investors are challenges and create great pressure.”, emphasized Ms. Hang.
Completion of the legal framework
At the talk “Identification of new trends in industrial park development”, organized by the Vietnam Economic Review (VnEconomy) on September 20, most of the opinions of experts, enterprises as well as representatives of ministries, branches and localities said that it is necessary to identify more clearly new opportunities, challenges and trends, in order to develop appropriate solutions, mechanisms and policies.
Production activities at Fuhong Precision Component Company in Dinh Tram Industrial Park (invested by Taiwan). (Photo: Danh Lam/VNA).
Mr. Pham Hong Diep, Chairman of the Board of Directors and General Director of Shinec Joint Stock Company, said that it is necessary to integrate the Laws to attract investment in industrial parks. Accordingly, Mr. Diep said that we have not integrated the laws together such as: Law on Investment, Law on Land, but the most difficult is Law on Land.
For example, the Investment Law allows tax exemption and reduction, but the Tax Law does not. Or the Law on Construction of an urban and ecological industrial park, but Decree No. 82/2018/ND-CP of the Government on regulations on management of industrial parks and economic zones states that industrial parks must have certain good infrastructure facilities, essential services for workers, but these services violate the Law on Housing and the Law on Construction.
“To attract investors to build industrial parks, all laws must be integrated with each other. In particular, as the recent COVID-19 epidemic revealed the workforce, workers without housing, they are not assured of production and business, the risk of labor shortage after the epidemic. Therefore, it is recommended that the Ministry of Construction and relevant ministries re-study the Law on Construction“, Mr. Diep emphasized.
Mr. Bui Ngoc Hai, Deputy Head of Economic Zone Management Board, Hai Phong city, said that planning is the resource that determines the success of the industrial park. Accordingly, each entity must not be planned independently, but the whole area, at least the whole city, must be planned to interact and support each other. Currently, the Hai Phong Economic Zone Authority is drafting and submitting to the city for promulgation a new resolution on the development of industrial clusters from now to 2025, with a vision to 2030. With the current conditions of Hai Phong, the Management Board is confident that it can quickly transform according to new trends. That is to form an ecosystem, not only industrial parks but also surrounding industrial clusters to support each other.
And Mr. Hans Kerstens, business development director of DEEP C industrial park, expressed the need to focus on sustainability and corporate social responsibility. In the past, many companies chose Vietnam for the sole reason of labor costs and this has changed in the past few years. Now more and more companies operating in the high value-added manufacturing sector are investing in Vietnam.
“At DEEP C Industrial Park, we focus on sustainability and corporate social responsibility. In fact, we are currently focusing on installing more solar panels on the roof of the tenant’s factory. From there, generate a lot of electricity for activities in the industrial park“, said Mr. Hans Kerstens.
In order to increase the attractiveness and sustainability in attracting investment to industrial parks, Mr. Phan Huu Thang said that it is necessary to have policies to attract large-scale and dynamic projects to industrial parks. This aims to form large-scale and specialized production clusters, with high linkages between enterprises in industrial parks and economic zones, between domestic enterprises and foreign-invested enterprises. .
In particular, focus on developing new industrial park models such as: eco-industrial parks, industrial-urban-service zones, supporting industrial zones, hi-tech agricultural zones with synchronous technical infrastructure quality, creating favorable conditions for attracting capital flows. quality investment.
Thuy Hien (VNA/Vietnam+)
