Remove barriers, open investment capital flows to industrial zones

VCN - On August 11, at a forum entitled "Vietnam's Industrial Zones 2022: Opening up new investment capital flows", experts came up with many solutions to improve foreign investment cooperation (FDI) in industrial zones (IZs) in Vietnam in the future.
Industrial production continues to grow in first five months Industrial production continues to grow in first five months
Large industrial zones set up to attract FDI Large industrial zones set up to attract FDI
Expanding industrial zones to welcome waves of foreign investment Expanding industrial zones to welcome waves of foreign investment
The speakers exchanged ideas at the discussion session. Photo: the organizer
The speakers exchanged ideas at the discussion session. Photo: the organizer

Golden opportunity for investment

Speaking at the forum, Deputy Minister of Planning and Investment Tran Quoc Phuong said that in recent years, on average annually, FDI capital in IZs and EZs has accounted for about 35-40% of the total additional registered FDI capital of the whole country; in the field of processing and manufacturing only, FDI capital in IZs and EZs accounted for 70-80% of the total registered capital of the country.

IZs and EZs have become key areas to attract investment capital and large projects at home and abroad. They are the destination of many leading corporations such as; Samsung, Canon, LG, Sumitomo, Foxconn, and VSIP.

Many domestic enterprises with the beginning as an investor in developing and trading IZ infrastructure have developed into multi-industry and multi-field investment corporations, gradually reaching out to foreign markets, affirming the position of Vietnamese enterprises in the international arena such as; Phu My 3, Viglacera, Truong Hai, Becamex, Sonadezi, and Kinh Bac. These remarkable contributions of IZs and EZs attract investment and develop production and business.

In particular, specialized, green and sustainable IZs are attracting foreign businesses. Ta Quoc Bao, Deputy General Director of Phu My 3 specialized Industrial Park, said that Phu My 3 specialized Industrial Park, a specialized ecological and symbiotic industrial zone with a scale of 1,028ha, was the only Vietnam’s specialized industrial park be approved and established in 2014. It was synchronously invested with high-quality technical infrastructure that meets international standards. Since 2015, Phu My 3 specialized industrial zone has attracted 31 investment projects with a total investment capital of about VND36,000 billion. It is expected that by the end of 2022, it will attract about US$1 billion more in FDI, bringing the total FDI investment in the IZ to about VND60,000 billion.

Ngo Hoang Ho, General Manager of Sales Division of Vietnam NOK Co., Ltd., Amata Industrial Park, said that most of the company's products are exported to Japan and the US, which are very demanding markets in terms of product quality and factors related to environment and labor. To meet the customers’ requirements, since 2018, the company has applied a cleaner production process, controlled CO2 emissions, used efficient materials, and improved and replaced equipment using lots of energy. Thanks to the sustainable industrial production process, the enterprise has reduced production costs, increased economic efficiency, contributed to environmental protection, and met the requirements of international corporations for businesses who want to participate in the global supply chain.

Remove barriers

However, according to experts and businesses at the forum, besides great opportunities, attracting FDI in IZs has faced challenges such as; cumbersome and overlapping administrative procedures; long implementation time, which increases the cost and time and reduces the efficiency of the investment project; law enforcement issues, especially investment incentives; and shortage of high-quality labor supply.

Huong Vu, General Director of EY Vietnam said that in recent years, attracting investment capital into Vietnam has been good, but the process of implementing legal documents is dependent on the consultant. The concept of an export processing enterprise, which enjoys priority is an example. In the past, there were many limitations, when the Government issued Decree 18 to solve problems about tax refund and input, there are still other problems that have not been resolved.

According to Nguyen Cong Ai, Deputy General Director of KPMG, Vietnam is the most attractive destination for international investors. However, if this is called a golden opportunity, there is still need to be cautious. In my opinion, IZs and EZs should focus on investment quality, environmental friendliness, high technology investment, and not necessarily large investors.

As the focal agency advising on state management of IZs and EZs, Deputy Minister of Planning and Investment Tran Quoc Phuong said that the Ministry has performed tasks and solutions on the development of IZs and EZs. In particular, the Ministry has advised the Government to issue Decree No. 35/2022/ND-CP dated May 28, 2022 regulating the management of IZs and EZs, which added new types of IZs and EZs, abolished establishment procedures to reduce administrative procedures, and supplemented and revised a number of regulations to improve the efficiency of land use in IZ, EZ development.

Work on two major industrial zones to get underway in Binh Duong Work on two major industrial zones to get underway in Binh Duong

The southern province of Binh Duong will start construction of two giant industrial zones of more than ...

In the future, the Ministry of Planning and Investment will join other ministries, branches, and localities in continuously studying and improving mechanisms and policies, and will accompany investors to build transparent and favorable business investment environment of IZs and EZs.
By Thu Diu/ Ha Thanh

Related News

Efforts to remove obstacles to upgrade the stock market

Efforts to remove obstacles to upgrade the stock market

VCN - According to the sharing of Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission (SSC), in addition to completing the main criteria of international rating organizations in upgrading the stock market (TTCK), the State Securities Commission (SSC) continues to improve domestic regulations on the basis of researching international regulations and practices to promote Vietnam's stock market to develop in a sustainable direction, creating a favorable environment to attract international investors and foreign indirect investment capital flows.
Adapt and proactively respond to opportunities to expand exports

Adapt and proactively respond to opportunities to expand exports

VCN - According to Dr. Nguyen Manh Hung (photo), Senior Head of the Department of Supply Chain Management and Logistics, RMIT University, facing the export situation forecast still have many difficulties, Vietnamese businesses need to improve their proactiveness with support from management agencies to expand markets and take advantage of opportunities for more effective export.
Binh Duong Customs Department accompanies and supports businesses to comply with the law

Binh Duong Customs Department accompanies and supports businesses to comply with the law

VCN - Thanks to many practical solutions, the pilot program to support and encourage businesses to voluntarily comply with customs laws at Binh Duong Customs Department is increasingly effective, highly recognized and evaluated by the business community
Vietnamese value brand

Vietnamese value brand

VCN - The turnover and export value of Vietnamese enterprises in recent years have reached very remarkable numbers. But what needs to be done to bring Vietnamese brands further and be recognized by the international market is still a story with many concerns...

Latest News

Bac Lieu targets national shrimp hub status

Bac Lieu targets national shrimp hub status

With the aim of becoming a "national shrimp industry hub" and focusing on creating the "Bac Lieu clean shrimp" brand to develop a shrimp value chain, the Mekong Delta province of Bac Lieu has set developing hi-tech shrimp farming models as a primary direction.
Can Vietnam

Can Vietnam's Fisheries Pass the IUU Inspection in April 2024?

VCN - The upcoming fifth inspection by the European Commission (EC) on Illegal, Unreported, and Unregulated (IUU) fishing in Vietnam, set for April 2024, has prompted local authorities to intensify efforts to address existing challenges and limitations. They are prioritizing the execution of critical tasks and solutions from now until April 30, 2024, to meet the stringent requirements.
Vietnam"s aquatic product exports expected to recover in 2024

Vietnam"s aquatic product exports expected to recover in 2024

Vietnam’s aquatic product exports in January surged 60.8% year-on-year to 730 million USD, making a positive signal for the year, according to the Ministry of Industry and Trade’s Agency of Foreign Trade.
Vietnam

Vietnam's 2 hundred billion dollar trading partners

VCN - China and the United States are our country's two largest trading partners and together have a turnover of over 100 billion USD.

More News

Optimistic signs seen in exports of garment-textile sector

Optimistic signs seen in exports of garment-textile sector

Enjoying a rise in orders, the garment and textile sector is optimistic about the completion of its target of earning 44 billion USD in export revenue set for this year.
OCOP products bring about dual benefits

OCOP products bring about dual benefits

The One Commune One Product (OCOP) Programme has no longer been a pure poverty reduction measure for rural areas, but an important boost for Vietnamese agricultural products, connecting other industries for mutual development, thus bringing dual benefits for rural areas, according to experts.
Farm exports expect breakthrough

Farm exports expect breakthrough

Vietnam's export of agricultural products recorded impressive growth in the first month of 2024 and is expected to see a breakthrough in the whole year.
First container of Ha Giang pickled daikon in 2024 exported to Japan

First container of Ha Giang pickled daikon in 2024 exported to Japan

The first container of pickled daikon in 2024 from the northern province of Ha Giang was exported to Japan on February 19 within the cooperation in the value chain linkage between Ha Giang and the Vietnam Misaki Co., Ltd.
Rice sector works on 5 billion USD export target

Rice sector works on 5 billion USD export target

Vietnam's rice exports are expected to continue their upward trajectory this year, toward a milestone of 5 billion USD in turnover.
Semiconductor industry hoped to attract half of FDI investors in Da Nang

Semiconductor industry hoped to attract half of FDI investors in Da Nang

Some potential investors are exploring investment chances in central Da Nang city, and its Hi-Tech Park and Industrial Zones Authority (DHPIZA) hopes that 50% of those FDI businesses will invest in the local semiconductor industry this year.
Vietnam’s automobile market stands 5th in Southeast Asia

Vietnam’s automobile market stands 5th in Southeast Asia

The decline in domestic automobile consumption and its drop to 5th place in Southeast Asia can be attributed to both external and internal factors, according to industry insiders.
Ninh Thuan takes grape production to next level

Ninh Thuan takes grape production to next level

Positioned as the proud owner of Vietnam's largest grape farming area spanning over 1,000ha, the southern central province of Ninh Thuan is proactively embracing modern technology across various stages of grape production and processing.
Shrimp exports to the US face new difficulties

Shrimp exports to the US face new difficulties

VCN – Although shrimp exports see prosperity in the first month of 2024, shrimp exporters face new difficulties and need to be flexible and proactive in responding to the situation.
Read More

Your care

Latest Most read
Bac Lieu targets national shrimp hub status

Bac Lieu targets national shrimp hub status

With the aim of becoming a "national shrimp industry hub" and focusing on creating the "Bac Lieu clean shrimp" brand to develop a shrimp value chain, the Mekong Delta province of Bac Lieu has set developing hi-tech shrimp farming models as a primary direction.
Can Vietnam

Can Vietnam's Fisheries Pass the IUU Inspection in April 2024?

VCN - The fifth inspection in April 2024 represents a pivotal opportunity for Vietnam to address the EC's "yellow card" warning.
Vietnam"s aquatic product exports expected to recover in 2024

Vietnam"s aquatic product exports expected to recover in 2024

Vietnam’s aquatic product exports in January surged 60.8% year-on-year to 730 million USD, making a positive signal for the year, according to the Ministry of Industry and Trade’s Agency of Foreign Trade.
Vietnam

Vietnam's 2 hundred billion dollar trading partners

China and the United States are our country's two largest trading partners and together have a turnover of over 100 billion USD.
Optimistic signs seen in exports of garment-textile sector

Optimistic signs seen in exports of garment-textile sector

Enjoying a rise in orders, the garment and textile sector is optimistic about the completion of its target of earning 44 billion USD in export revenue set for this year.
Mobile Version