Dong Nai is rushing to develop infrastructure to connect its industrial parks (IPs), while simultaneously resolving all outstanding issues to improve its capacity to attract investment capital.
On August 16, the southern province of Dong Nai organised a dialogue to clarify any barriers in the process of investment capital attraction.
At the meeting, industrial real estate developers and manufacturers primarily raised concerns about the difficulties related to site clearance, the dizzying rise in land rental prices, and the asynchronous infrastructure that connects the IPs.
Nguyen Thanh Dat, general director of Nhon Trach 6a Investment Construction Industrial Zone Co., Ltd., expressed his concern about the increase in land rental fees in recent years. He said that the company signed a lease agreement for the 2019-2024 period at price of VND2,000 (around 8 US cents) per square metre. However, the current price has climbed by 20 times to VND40,000 ($1.69) per sq.m.
“The sudden adjustment in land rental prices will affect the outlook of investors, especially in the context of the real estate market’s general difficulties. Thus, the company has requested that the province reconsider more affordable fees,” Dat said.
In terms of infrastructure, Thai Hoang Nam, general director of AMATA City Long Thanh JSC shared, "Amata Long Thanh IP is ready to attract investors, however, the construction of the surrounding infrastructure system has yet to be implemented, leading to concern among potential clients."
"Thus, we expect the province to accelerate the construction of road routes to connect the highway to the IPs in the province," he added.
After listening to the business community’s opinions, Nguyen Hong Linh, Secretary of Dong Nai Party Committee issued an ultimatum to the relevant authorities, requiring them to approach investors and manufacturers to clarify all the obstacles immediately. The final report covering the findings is due within a month.
The province will also concentrate on resolving all the pending issues in terms of land clearance at the 10 current IPs. The total area awaiting land clearance stands at 820 hectares.
Linh said, “The province currently lacks large areas of available land to welcome secondary investors. The land clearance delays are due either to residents refusing compensation or the province not having allocated plots for resettlement yet. Over the coming time, the feasibility of resolving these issues will be studied, but if no solution is found, the uncleared area will be removed from the planning.”
The eagerness of Dong Nai is understandable as the race to lure foreign-invested capital heats up. As many emerging localities such as Nghe An, Thai Binh, and Quang Ninh push ahead with this work, Dong Nai is in danger of losing its competitive advantage.
Dong Nai is one of the largest hubs for IPs in Vietnam and has been a trusted investment destination for billion-dollar projects. However, it currently reports a downturn in foreign investment as it lacks the capacity to pick up large-scale ventures.
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