With available grounds, completed infrastructure, attractive incentives and enthusiastic support, industrial parks (IPs) of Phu Tho province are now ready to accommodate investors, said Mr. Nguyen Ngoc Hanh, Director of Phu Tho IPs Authority with Vietnam Business Forum.
How do you evaluate the performance of Phu Tho IPs in the current period?
Phu Tho province currently houses seven IPs covering a total area of 2,256 hectares, widely distributed across the province.
By the end of 2020, four IPs had been invested with technical infrastructure and put into operation. Specifically:
Thuy Van IP: the infrastructure system completed (with the budget of VND257.8 billion); the centralized wastewater treatment system with a capacity of 5,000m3/day and night (ODA capital of Euro 4,934,573); 310.7 ha recovered after ground clearance and 254/265 ha for lease (the occupancy rate at 95.8%). The number of valid projects as of December 2020 included 36 FDI projects with registered capital of US$611 million and 67 DDI projects with a capital of VND10,147 billion.
Trung Ha IP: Completed infrastructure system of 81.0 ha (budget of VND75.52 billion); 81.0 ha recovered after ground clearance and 53.21/53.0 ha for lease (occupancy rate 100%). The number of valid projects as of December 2020 included 13 DDI projects with the capital of VND2,333 billion.
Phu Ha IP: Currently, the southern subdivision has been basically completed with an area of 119 ha, with the implemented capital of VND280.0 billion; the wastewater treatment plant was built and put into operation (phase I, with capacity 1,250 m3/day and night, with capital of VND18.0 billion) and started construction of housing for workers (with a capital VND400 billion). The investor compensated for site clearance to recover 189 ha; invested in infrastructure construction of 119 ha and 71.57/75.0 ha for lease (at 95%). The number of valid projects as of December 2020 included 23 FDI projects with the registered capital of US$285.46 million.
Cam Khe IP is approved by the Provincial People's Committee to plan the construction zone of 450 ha, with a total investment of VND2,477 billion, invested by the joint venture of Ao Vua Company and Duc Anh Company, compensated for site clearance and invested in technical infrastructure construction, there have been some investors subleasing land. Currently, it has cleared the ground and recovered 135.0 ha, and has been leveling 70 ha.
How do you evaluate the performance of enterprises in the IPs and their contribution to local socio-economic development?
From 2005-2020, the number of enterprises in Phu Tho IPs increased from 4 to 167 enterprises and there have been more and more large-scale investment projects. Although the number is modest (2% of the province's enterprises) but it has created a great industrial value, reaching about VND43,500 billion in 2020 (68 times compared to 2005) and contributing about VND1,000 billion to the budget in 2020, accounting for 13.5% of the provincial budget revenue (reaching VND1,600 billion in 2019, accounting for 29% of the provincial budget).
The enterprises have contributed to promoting economic growth and created 45,000 more jobs with income from VND6.5 to 6.8 million/person/month. The development of IPs has created momentum for an increasingly complete economic - technical infrastructure system, especially the arterial traffic system, electricity network, information, telecommunications and economic sectors increasingly become dynamic.
In recent years, what solutions have you taken to address the difficulties of businesses and promote production - business activities?
We have regularly updated information, clearly instructed investment, construction procedures, incentive policies, legal documents and information on our website and they are also publicly listed at our office.
With the motto of proactively accompanying enterprises, we have always followed the guidelines and policies of the Central government and the provincial government to support and solve problems in implementing administrative procedures, consulting policies and laws on investment, construction, environment, labor for investors. We also regularly keep in contact with enterprises, annually organize a conference to summarize activities with inviting departments, sectors and People's Committees of districts, towns and cities to grasp and solve problems in manufacturing and business activities; at the same time we act as a bridge for businesses in the IPs to meet, connect for trade and take advantage of raw materials or product consumption. In addition, we also support businesses that have difficulty in finding new investment opportunities or transferring projects to investors in order to minimize damage to businesses.
Over the past years, we have always cooperated closely with investors in infrastructure business in IPs and clusters to inspect and supervise basic construction investment activities, fire prevention and control, environmental protection, policies for employees to detect construction works not in accordance with planning, without licenses to build or illegally built, and to promptly rectify or report to competent authorities for handling.
In particular, during the difficult period due to the impact of the COVID-19 pandemic, we have coordinated with relevant departments and sectors to instruct enterprises to suspend the payment of trade union fees; delay tax payment and land rental according to Resolution 41/NQ-CP; synthesized and submitted to the Provincial People's Committee the reception of more than 100 foreign experts to support enterprises in installing machinery and equipment and operating production and business activities.
How are you preparing conditions to embrace global integration and shifting?
Compared with some neighboring provinces in the Northern Midland Delta, the number of IPs in Phu Tho province is limited and not worthy of its potential. To prepare conditions for global investment integration and shifting; along with the preparation of infrastructure, clean premises to prepare for a new investment wave from Europe, America especially investment flows from China with satellite enterprises having high technology content and high competitiveness in the international market, we have proposed the Provincial People's Committee four areas to plan new IPs, including Dong Luong, expanded Ha Hoa, Thanh Ba, and Vo Mieu.
On the other hand, complying with the Politburo's Resolution 50-NQ/TU dated August 20, 2019 on the orientation to perfect institutions, policies, and improve the quality and efficiency of foreign investment cooperation by 2030, and resolutions, directives and orientations to attract investment of the Central government and the province, we have proposed orientations for investment attraction in the coming time: Actively attracting and cooperating in selective foreign investments, with quality, efficiency, technology and environmental protection as the main evaluation criteria. We will prioritize projects with advanced technology, new technology, high technology, clean technology, modern governance, high added value and spillover effects, connecting the entire global production and supply chain.
Source: Vietnam Business Forum
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