The development of industrial zones needs a comprehensive plan to capture the transition of the foreign direct investment inflow (Photo: baochinhphu.vn)Hanoi (VNS/VNA) – The development of industrial zones (IZs) needs a comprehensiveplan to capture the transition of the foreign direct investment (FDI) inflowspurred by trade wars and the COVID-19 pandemic in which Vietnam hassignificant opportunities to become the next global factory.
The global production transition out of China spurred by the US – China tradewars and the COVID-19 pandemic recently gave a push to the development of IZsin Vietnam.
In the first three months of this year, five new IZs were founded with a totalarea of 800 hectares, compared with only four in the whole of 2019.
Some deserted IZs found new developers and had infrastructure developed to getready for leasing, such as the 46-hectare An Phat High Tech Industrial Park inthe northern province of Hai Duong.
Su Ngoc Khuong, senior director of investment, Savills Vietnam, said that a lotof domestic and foreign investors were finding locations in industrial zonesfor investment, some wanted to become developers of industrial parks while someothers planned to expand factories.
Do Nhat Hoang, Director of the Ministry of Planning and Investment’s ForeignInvestment Agency, said that a close watch was being kept on the transition ofglobal production, which was opening opportunities for a number of countries,including Vietnam.
Hoang said that the agency was working with foreign investors who wereconsidering moving to Vietnam so as to raise policies which would create afavourable investment climate.
He added that the Law on Investment was being amended to enable Vietnam to capturethe FDI inflow in the context of the global production transition.
The ministry said that the development of IZs needed a strategy which aimed at sustainability, economic efficiency and environmental friendliness.
According to Nguyen Van Toan, Vice President of the Vietnam Association ofForeign Invested Enterprises, the infrastructure of IZs remained a limitation.Toàn said that many IZs did not have good transport connectivity.
“A comprehensive plan is needed for the development of IZs,” Toan said, addingthat the plan would prevent rampant development of IZs nationwide and enable Vietnamto capture the opportunities from the global production transition.
Vietnam targeted that the total registered capital into IZs would reach 2.7-3.2quadrillion VND (116-138 billion USD) in domestic investment and 280-330billion USD in FDI by 2030. Realised capital was expected at 1.5 -2 quadrillionVND and 240-290 billion USD, respectively, according to the ministry.
In addition, IZs would generate jobs for 5-6 million workers in 2025 and 7-8million in 2030.
The promulgation of the Law on Foreign Investment in 1987 created conditionsfor the formation and development of IZs which had so far contributedsignificantly to attracting the FDI flow into the country.
Statistics of the Ministry of Planning and Investment showed that as of March,335 IZs were founded with a total area of 97,800 hectares, 206 of which wereoperational with a total area of 68,700 hectares. The average occupancy ratewas 75.6 percent./.
VNA
