Many localities around the country are in a race to attract foreign direct investment via various channels including boosting infrastructure development.
Secretary of Binh Duong Party Committee Nguyen Van Loi and representatives of provincial authorities on August 24 surveyed the implementation of compensation and site clearance at a project on upgrading and expanding DT746 road. The road plays an important role in connecting Vietnam-Singapore Industrial Park III (VSIP3) with Ring Road 4, not only facilitating traffic but also opening up development space in the region.
|Localities race to complete infrastructure for big gains - illustration photo |
The road goes through North Tan Uyen district and Tan Uyen town, which has impacted over 1,100 households. To date, the localities completed the land acquisition of almost 980 households.
“The project on upgrading and expanding this road plays a crucial role in welcoming the investment inflow in VSIP3, which is also under construction,” Loi said.
Work on the factory is scheduled to begin this year and it will become operational in 2024 to help Danish-backed Lego Group expand its global supply chain. Its new facility has a total investment of more than $1 billion, rendering it one of the largest foreign-invested projects in Vietnam.
Loi also requested that the project’s site clearance and disbursement will be carried out in October and construction will be officially started in November. “If there are any problems during the implementation process, the local authorities must immediately report to provincial leaders to look for solutions,” Loi said.
Binh Duong People’s Committee wants to complete the land clearance and handover to the investor of the Lego factory by September 30.
Being aware of the importance of creating favourable conditions for investors to develop projects in collaboration with drastic actions has helped the southern province rein in the largest amount of foreign-invested capital inflow.
In the first eight months of this year, the province stands second in terms of attracting foreign-invested capital at $2.64 billion. The province led in the newly-registered capital attraction, thanks to the Lego project.
The other localities that have attracted the largest foreign-invested capital so far this year were Ho Chi Minh City ($2.7 billion), Bac Ninh ($1.75 billion), Thai Nguyen ($1.53 billion), and Haiphong ($1.21 billion). Some large-scale projects invested in these localities include the expanded Samsung projects in Ho Chi Minh City and Thai Nguyen, among others.
Building sufficient transport infrastructure has been a key factor in attracting new ventures. In the northern province of Bac Ninh, the People’s Committee issued a list of related projects to be developed by 2025, such as Kenh Vang Bridge at $69.1 million, Ring Road 4 passing through the province at $242.6 million, and Chi Bridge at $82.17 million.
The departments of planning and investment in Ho Chi Minh City, Ba Ria-Vung Tau, Dong Nai, Binh Duong, and Long An are working together to develop Ring Road 4. Covering 198km with 6-8 lanes, the road is expected to cost $4.35 billion and will be allocated by the localities’ budgets. In the first phase of the project, localities will deploy independent bidding packages for site clearance.
“Ring Road 4 has important significance in connecting satellite urban between Ho Chi Minh City with other provinces in the southern key economic region,” said Tran Quang Lam, director of Ho Chi Minh City Department of Transport. “It will connect industrial zones and key economic zones with the ports of Phu My, Hiep Phuoc, and Long An, as well as Long Thanh International Airport, to save transport time and reduce logistics costs. These benefits will create a foundation to attract foreign capital.”
In March 2023, the local authorities will approve the related reports, and construction is expected to start in 2024 with a proposed 2028 completion, according to Lam.
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