Industrial zones yet to take off

Ha Nam province - illustration photo

The occupancy rate at industrial zones (IZs) in northern Ha Nam province is less than 70 per cent though the province has many advantages in luring investors.

Until 2011’s first quarter, 265.7ha of IZ land was given to investors, of which businesses used up 177.8ha, according to Ha Nam Industrial Zones Management Authority deputy head Pham Ba Tung.

Some provincial IZs report low occupancy rate such as Hoa Mac 4.8ha out of 131ha, Dong Van II 65.8ha out of 320ha and Chau Son 36.2ha out of 115ha.

Another northern location, Hung Yen, is in the same position. Accordingly, of four on-going IZs out of a total 13 IZs, the occupancy rate of Pho Noi A IZ is over 56 per cent (220ha out of 392ha) while that of three remaining IZs was very low. For instance, it is 16 per cent at Pho Noi Textile Garment IZ and 20 per cent at Minh Duc IZ.

The Mekong Delta houses 20 IZs covering 3,645ha. However, merely 810ha were leased out, around 22 per cent of total. Besides, the region also accommodates 177 industrial clusters covering 15,457ha but businesses only occupy 15 clusters with 700ha leased, just 4.5 per cent of the total.

Head of Region 1 Academy of Politics and Public Administration’s Economics and Development Faculty Dr. Nguyen Van Su attributed the poor figures to localities vying for IZ licencing, while thinking little of their future development orientations.

Economist Le Dang Doanh attributed the situation to lax foreign direct investment management and poor forecasts. In his mind, it is now high time for checking up IZs nationwide, whereas more prudent policies on IZ development must be created.

Doanh also suggests taking back deserted IZs for development of residential blocks, hospitals, schools or simply returning land to farmers.

From the part of Ho Chi Minh City Industrial Zone and Export Processing Zone Authority head Vu Van Hoa, the core reason was poor investment promotion.

Localities needed to invite investors, local and international investment promotion organisations to partake in meetings where local advantages and potential were showcased alongside investment incentive policies to woo investors, Hoa said.

According to the Ministry of Planning and Investment, Vietnam is currently home to 260 IZs covering 71,394ha in total area. Of which 173 IZs are operational with a total area of 43,718ha.

Industrial zones are seen in 57 provinces and municipalities nationwide. Southern key economic zone hosts 124 IZs making up 48 per cent in total. 52 IZs are positioned in northern key economic zone, accounting for 20 per cent and 23 IZs are in central region key economic zone, around 10 per cent of the total.