At an industrial park in HCM City (Photo: VNA)HCM City (VNS/VNA) - Withits neighbouring provinces offering competitive land rentals and otherincentives at industrial parks to attract investors, Ho Chi Minh City needs tostep up its game too.
There are 17 industrial parks(IPs) and export processing zones (EPZs) in the city and they have anoccupation rate of 68 percent, with specialised industrial parks, except theQuang Trung Software City, not attracting much interest from enterprises.
For example, the Automotive-Mechanical Industrial Park established three years ago on an area of nearly100ha in Cu Chi District has attracted only 12 companies who have investedaround 900 billion VND (38.8 million USD) and lease around 20ha, or one-fifthof its area.
A recent study conducted by theHCM City Export Processing Zoneand Industrial Park Authority (Hepza) and a research team from the HCM CityUniversity of Economics found that the city’s advantages over neighbouringlocalities with regard to attracting investment in its IPs and EPZs havereduced since the latter are offering competitive land rentals and otherincentives.
The infrastructure at many ofthe city’s IPs and EPZs fall short of investors’ needs.
While the average rent is 74USD per square metre in Dong Nai for a lease term of 40-50 years, 43.7 USD in BinhDuong and 76 USD in Long An, it is 125 USD in HCM City.
The city needs to restructureand switch to newer models of IPs and EPZs now to continue to attractinvestment, ensuring it has appropriate mechanisms and policies during thetransition process.
Dau tu (Investment Review) newspaperreported the city has sought the Government’s approval to make 1/2,000 scaleplan for a new 380ha industrial park in Pham Van Hai commune, Binh Chanh district.
It will be a specialisedindustrial park prioritising innovative start-ups and producers and distributorsin new industries and technologies./.
There are 17 industrial parks(IPs) and export processing zones (EPZs) in the city and they have anoccupation rate of 68 percent, with specialised industrial parks, except theQuang Trung Software City, not attracting much interest from enterprises.
For example, the Automotive-Mechanical Industrial Park established three years ago on an area of nearly100ha in Cu Chi District has attracted only 12 companies who have investedaround 900 billion VND (38.8 million USD) and lease around 20ha, or one-fifthof its area.
A recent study conducted by theHCM City Export Processing Zoneand Industrial Park Authority (Hepza) and a research team from the HCM CityUniversity of Economics found that the city’s advantages over neighbouringlocalities with regard to attracting investment in its IPs and EPZs havereduced since the latter are offering competitive land rentals and otherincentives.
The infrastructure at many ofthe city’s IPs and EPZs fall short of investors’ needs.
While the average rent is 74USD per square metre in Dong Nai for a lease term of 40-50 years, 43.7 USD in BinhDuong and 76 USD in Long An, it is 125 USD in HCM City.
The city needs to restructureand switch to newer models of IPs and EPZs now to continue to attractinvestment, ensuring it has appropriate mechanisms and policies during thetransition process.
Dau tu (Investment Review) newspaperreported the city has sought the Government’s approval to make 1/2,000 scaleplan for a new 380ha industrial park in Pham Van Hai commune, Binh Chanh district.
It will be a specialisedindustrial park prioritising innovative start-ups and producers and distributorsin new industries and technologies./.
VNA
