Industrial and export processing zones in the southern key economic area have attracted over US$21.8bil to date.

As of the end of 2007, these zones attracted over 3,000 projects. Of that number, 1,886 were foreign-invested worth a total of $17.5bil, accounting for 63% of total foreign investment in zones nationwide.

The area is currently home to 73 industrial and processing zones, spanning nearly 20,000ha. Zones that succeeded at getting full land occupancy and strong development included Tan Thuan, Linh Trung 1, Tan Tao, Hiep Phuoc, Amata, Bien Hoa 2 and Dong An. Zones in HCM City proved the most successful, posting an average occupancy ratio of over 80% as the most effectively used land nationwide.

Experts attributed the success to the area authorities use of "one door" mechanisms which facilitate conditions for investors.

Authorities also worked closely with industrial and processing zone management boards to co-ordinate conditions for investors while implementing their projects in the zones.

Only fourteen of the established zones were fully occupied and several zones were less successful in attracting investment such as Tan Phu Trung, Tan Quy, Phong Phu, An Phuoc, Long Huong and Ben Dinh. The poorer performances were attributed to inadequate infrastructure, difficulties in land clearance and compensation.

The southern key economic area includes HCM City, and the provinces of Binh Duong, Dong Nai, Ba Ria – Vung Tau, Binh Phuoc, Tay Ninh, Long An and Tien Giang.

Plan for industrial zones

A new Government plan for increasing development in the nation’s industrial zones through 2015 aims to lure investment of $36-39bil for over 6,000 projects, according to the Industrial and Export Processing Zones Management Department under the Ministry of Planning and Investment.

The Government wants to attract enough investment to lease all the land in existing industrial zones by 2010, as well as establish new zones on an additional 15,000-20,000ha. This would increase the total area of the nation’s industrial zones to almost 50,000ha by 2010, a figure that could continue to rise to 65-70,000ha by 2015 and nearly 80,000ha by 2020.

The plan would also regulate the expansion of existing zones, allowing zones with at least 60% occupancy to expand acreage, and would provide for the development of necessary waste water treatment facilities.

By December of last year, Vietnam had established 154 industrial and export processing zones covering more than 32,800ha. Foreign investors had initiated 20 infrastructure construction projects in these zones, with a total investment capital of $1.2bil, while domestic businesses had invested $2.8bil in 134 projects.

Source: Viet Nam News