IZs, EZs attract $8.3 billion in 2018

Seafood being processed for export at a factory in the Tien Giang Province-located My Tho Industrial Zone. Industrial zones and economic zones operating in the country lured more than US$8.3 billion in investment in 2018. - VNA/VNS Photo

Of the sum, $5.3 billion came from 560 newly-licensed projects while the remainder was contributed by 500 existing projects raising their levels of capital.

The latest addition had brought the investment registered in these zones as of last year up to $187 billion, with VND970 trillion ($41.6 billion) from 7,500 domestically-invested projects and more than $145 billion from 8,000 foreign-invested ones.

The occupancy rate of operational IZs across the nation hit 73 per cent in 2018, according to the report.

As of the end of 2018, the country had 17 coastal EZs established on a total land and water area of over 845,000ha. In addition, plans have been outlined to build the Nhan Co EZ in the northern province of Nam Dinh.

Currently, there are 326 IZs across 63 cities and provinces, 250 of which are operational. The rest are under construction or awaiting land clearance. More than 87 per cent of the active IZs had their own waste water disposal plants with a capacity of 950,000 cubic metres per day.

In an effort to improve efficiency of IZs and processing zones, the Department of Economic Zone Management will complete a legal framework to lure more domestic and foreign investments, ensuring that they fit local potential and socio-economic development orientation.

Amendments should be made to ensure clearer and more transparent investment procedures, the department said, adding that prudent assessment is a must to choosing quality projects which make contributions to the State budget, improving the quality of human resources, and protecting the environment. The department will study and propose that competent authorities build and issue a law on industrial parks.

Under Decree No 82/2018/ND-CP on regulating the management of IZs and EZs in Viet Nam, projects focusing on the infrastructure development of IZs in areas with difficult socio-economic conditions will get capital support from the central budget.

As per the decree which came into effect in July, 2018, the provincial people’s committees will also support investors through local budgets in the development of technical infrastructure systems inside and outside the IZs and arrange other sources of capital for the construction of IZs’ infrastructure.

Large-scale infrastructure investment projects, which are important for the development of EZs, can mobilise capital by issuing bonds in accordance with the provisions of law.