Companies struggle to rediscover their feet

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Wood furniture maker Thai Ngan Production Trading has removed one of its three production factories in District 12’s Tan Thoi Nhat ward to the city’s suburbs, but cannot operate its new factory as it has yet to get an environmental certificate, said director Nguyen Thi Kim Loan.

Loan said every six months the firm must pen a report assessing impacts of its production into the surrounding area, causing a headache for the firm’s leadership.

Ho Chi Minh City Handicraft and Wood Industry Association (HAWA) deputy chairman Dang Quoc Hung said new businesses operating in handicraft and wooden furniture manufacturing were obliged to author environmental impact assessment reports.

The Ministry of Natural Resources and Environment reportedly gave the nod to the proposal that small firms making wood products only have to undertake to take care of the environment and be certified by local competent bodies instead of making environmental impact assessment reports.

Reality shows that it is not easy for small- and medium-sized enterprises to spend over VND60 million ($2,900) into making such reports to get an environmental licence before they build new factories.

Parallel to procedural issues, financial difficulties are impeding the removal progress.

Shoe sole-maker Minh Dieu Production Trading was also told to leave the city’s Nguyen Van Quy road in District 7.

Six years ago, the firm acquired a land plot in Dong Nai province’s Sonadezi Industrial Park as the leadership thought it would be convenient for the firm to head to the new location when construction of beltway 3 and the Ho Chi Minh City-Long Thanh-Dau Giay expressway was finalised.

Company general director Le Quang Doan said the firm had changed the function of its land area in Nguyen Van Quy road into a mixed-use complex.

The dormant property market had made sourcing additional incomes from land function transfers plummet.

Besides, construction of relevant roads is still underway, which will drive the firm’s transport expenses once removed.

Thanh Cong Textile Garment Joint Stock Company (TCM) is yet to remove factories to the city’s suburbs though its existing land area got the decision to be turned into a mixed-use complex.

A company representative said though the firm had acquired two land plots in Tay Ninh and Long An provinces to set up new factories it would be hard for it to source sufficient workers to start operations in the new locations.