Could you brief investment progress into provincial IZs?

Since our first IZ became up and running in 1998, the prime minister gave the nod allowing the province to found six other IZs covering 2,468 hectares in total area. They are Phu Bai with 818ha, Phong Dien 700ha, La Son 300ha, Tu Ha 250ha, Phu Da 250ha and Quang Vinh 150ha. These IZs attracted 77 projects worth more than VND12.490 trillion ($594.7 million) in total registered capital.

The occupancy rate at Phu Bai IZ’s first and second phase is 98 per cent, and at Phong Dien B IZ is 67 per cent. Other IZs are in the planning stage but they have attracted eight manufacturing plant projects with VND524 billion ($25 million) investment.

IZ development has contributed to facilitating the province’s economic structure transformation. IZ enterprises contribute 32 per cent of the province’s total industrial production value and 60 per cent of total export value, providing jobs to 12,600 labourers in the province and neighbouring areas.

In the recent past, Thua Thien-Hue Industrial Zones Authority and IZ infrastructure developers teamed up with Ho Chi Minh City Industrial and Export Processing Zones Authority to host a meeting promoting investment into the provincial IZs in Ho Chi Minh City. In the meeting six investors inked memoranda of understanding in diverse fields of IZ infrastructure investment, electronic, informatics, mechanical engineering and printing valued at more than VND450 billion ($21.4 million).

In the coming period, we will scale-up efforts to woo more investors to the province through hosting investment attraction activities in Hanoi and other localities, as well as joining investment promotion groups to Japan and China.

What areas will be prioritised to attract investors?

In the near term, priority investment areas will be developing IZ infrastructure, building waste-water treatment plants and worker housings, turning out products of high competitive advantages, green and clean consumer goods meeting ecological standards, promoting industries making use of rich natural resources and with big contributions to state budget such as building material production, wood processing, food industry, auto and motorbike assembling.

Spurring the development of software industry, electrical and electronic processing, new materials industry, mechanical engineering and supporting industries is needed parallel to stimulating manufacture of new items in electronics and informatics, energy, processing and environmental industries.

Bolstering industrial development in rural areas is another focus to tackle unemployment and speed up labour structure transformation.

What urgent measures will be taken to lure investors to provincial IZs in current context?

First, that is quickening the pace of site clearance and compensation to give clear land to investors.

Second, mobilising diverse resources to complete infrastructure construction at Phu Bai IZ’s phases 3 and 4, and at Phong Dien, Tu Ha, La Son, Phu Da and Quang Vinh IZs with priority given to building roads and developing power, water and telecom systems inside and outside the IZs.

Third, making use of support from central ministries and bodies to increase investment into IZs, particularly into projects of large scale involving major industries is necessary. Fourth, it is to support investors following the one-stop shop mechanism and scale up training to meet project human resources requirements.

Fifth is seeking revision and supplementation of investment incentives matching state regulations and completing detailed planning of IZs which link closely to worker housing development plans.
Sixth is strengthening state management to effectively control IZ enterprise operations in respect to environmental protection, labour and security to ensure sustainable development.