VSIP Nghe An – a space to work, a place to live

VSIP Nghe An has lured in investors from Japan, Korea, Taiwan, China, Malaysia, and Sweden

The intergrated township and Industrial Park VSIP Nghe An is one of the seven service, urban, and industrial park projects of VSIP in Vietnam, which was issued its investment registration certificate in June 30, 2015.

Good land absorbs investors

These days, VSIP Nghe An in Hung Nguyen district is positively buzzing. Prior to 2015, the whole area of VSIP Nghe An, which is now a service, urban, and industrial zone, was nothing but fallow land dotted by paddy fields. For a long time, water shortages threatened rice crops, causing insurmountable difficulties for farmers.

The emergence of the ambitious VSIP Nghe An project promised to become the new industrial area with an innovative and pro-business environment for foreign investors. However, it is not easy to clear 750 hectares of land of residential properties, barns, and factories.

Tran Van Hien, party committee secretary of Hung Tay commune, Hung Nguyen district recalled the early days of VSIP Nghe An. Since the commencement, leaders of the industrial park directly showed the representative of people owning lands in the clearance area, around VSIP Binh Duong to showcase the social and economic values VSIP brings.

“Many residents became suddenly aware of job opportunities once the new zone is born," he revealed, "and accepted the clearance. The people’s ambitions spurred developers to level the land, invest in infrastructure, and help attract other developers.”

Thanks to the state's one-door policy, administrative procedures for investment, land lease, and business registration, among others, were all done in time, quickly and efficiently. Provincial leaders also made clear commitments and facilitated the company's efforts of persuading investors at VSIP.

After five years, VSIP Nghe An has gradually gained shape. According to a report of VSIP Nghe An, the IP has attracted $188 million from 23 companies, including 11 foreign-invested enterprises from Japan, South Korea, Taiwan, China, Malaysia, and Sweden. It is anticipated that the area will provide employment to 22,000 employees. Until now, 21 companies have received investment registration certificates, while eight are operational and six companies are in the process of building factories.

Supporting workers and investors amid COVID-19

VSIP Nghe An has drawn in companies from a variety of sectors like textile and garment, electronics, and footwear. This allows thousands of residents to get a job right in their hometown instead of working far from home as many did in the past.

Tran Thi Minh, a resident of Hung Tay, Hung Nguyen who works at a textile company in the industrial zone said that since VSIP was opened, it brought many job opportunities and helped locals to leave their farming work behind. Especially, far fewer people have to look for jobs in big cities as they can find employment at the zone.

“My average wage is VND6 million ($256) a month," she added, "and if I take a few shifts overtime, it will be even higher. Having a stable job close to home has improved my family’s life. Because of COVID-19, we have been getting fewer working hours, but everything will return to normal when the pandemic is over.”

Ho Van Hiep, vice president of Hung Nguyen district’s People’s Committee stated that VSIP Nghe An has enhanced provincial traffic infrastructure and modernised the urban landscape. In particular, the park has grown the provincial economy and provided social security by giving jobs for up to 1,500 local workers.

Le Ngoc Hoa, vice president of Nghe An People’s Committee said that the province has attracted hundreds of foreign investors every year to discover investment opportunities. Many of them have made Nghe An their final choice for long-term development.

Located at the western entrance of Vinh city, VSIP Nghe An is closely linked to key infrastructure in the city, making transportation easy for residents and businesses. The zone has been investing in infrastructure development, which will facilitate businesses and attract more domestic and foreign investment.

“With the authorities' motto of 'accompanying enterprises', Nghe An province continues improving its investment environment. In the context of the COVID-19 pandemic, the province also promised to support the affected businesses in practical ways such as tax reduction and exemptions, as well as debt rescheduling. Businesses’ success is the province’s success,” he stated.