Factories told to move out

Dong Naiis an industrial hub in southern Vietnam

Local authorities and Sonadezi Corporation, developer of the 335 hectare Bien Hoa I Industrial Park, will move 102 companies to the 500ha Giang Dien Industrial Park in Trang Bom district or other industrial parks in the province from the early of 2011 to 2022.

The firms will make way for a new urban area which will boast a 97ha commercial and service area for banks, insurances, high-class hotel and a 238ha area for high-end apartments, office for lease buildings, restaurants, supermarkets, tennis courts, gym and swimming pools.

Companies which leave the park will  receive $26,316 in compensation from Sonadezi and local authorities. Those which decide not to move must transform to meet the new master plan.

However, many firms are unhappy with the options.

A source from Chinese-backed Dona NewTower Natural Drink and Food told VIR: “The compensation Sonadezi proposed is like a salt out of the sea compared with tens of million dollars of capital we spent to set up a new factory in Amatar industrial park.”

“However, I think that we still are lucky as Amatar  industrial park is not far from the Bien Hoa I Industrial Park and our 400 workers agreed to move to the new factory. Whereas moving to Giang Dien or other industrial parks, the distance between the old and new park will be up to 60 kilometres. That could make many workers leave our company.”

Kenichi Yoshida, general director of CFT Vina Copper, said the plant would need to halt operating for at least 18 months to install machines in a new factory and may lose close customers who are large contractors.

Vo Thanh Lap, head of Dong Nai industrial park management board, said: “The plan to transform Bien Hoa I Industrial Park to be a new urban area was approved several years ago. So far, companies ought to move their offices, factories and warehouses. However, we will consider compensation for each enterprise one more time.”

Established in 1963, Bien Hoa I Industrial Park is the oldest in Dong Nai province and one of the first industrial parks in Vietnam. In 1990, Sonadezi was authorised to upgrade, improve its infrastructure and manage it. In 2007, Dong Nai People’s Committee decided to transform the industrial park into a new urban area with the cost of $666 million for relocation of businesses inside. The transformation will help to protect Dong Nai River from waste water and materials dismissed by factories.