Vietnam - Conference lambasts industrial parks’ inefficiency

Many industrial parks (IP) around the country still yield poor economic effectiveness, while wasting land resources, said the Ministry of Planning and Investment yesterday at a meeting to summarize the IP development over the last 20 years.

As for last December, Vietnam is home to 283 IPs with total area amounting to 76,000 hectares. Of these, 180 IPs have been operational, spending more than US$9.5 billion on infrastructure development.

Meanwhile, the occupancy rate of the IPs and the export-processing zones (EPZ) is 65 percent, with around 10,000 hectares left unrented.

Around 4,100 FDI projects with total capital worth $59 billion are operating in the IPs. As of December 2011, the IPs and EPZs have created jobs for 1.76 million laborers. In the 2006-2010, the zones earned an export turnover worth $63 billion, and contributed $5.9 billion to the state budget.

Besides the IPs and EPZs, the Ministry of Planning and Investment said there are also 18 coastal economic zones, and 28 border gate economic zones around the country.

However, the ministry admitted that these economic zones have modest contribution to the localities' economy, while also demanded that the country not establish more zones.

Shortcomings

The ministry pointed out six shortcomings of the IPs and EPZs, one of which is the fact that some zones have been established in localities that are not very attractive to investors.

Many localities are still seeking to increase the occupancy rate, while neglecting the need for high tech or environmental protection, the ministry stated.

Thus, high technology has little presence in many IPs across the country , while many EZPs have been found to contaminate the surrounding environment, it concluded.

The Ministry of Planning and Investment also said there are only 24 registered housing projects for workers at the IPs around the country, which are able to provide accommodation for only 125,000 laborers.

Laborer wage remains an unsettled issue since workers still find it hard to make ends meet with the current pay.

Also speaking at the meeting, many delegates have pointed out other drawbacks of the IPs and EPZs.

For instance, Vu Van Thai, an official from the Ministry of Home Affairs, said some provinces have been found to have 2-3 management bodies for the IPs, with some having none while it is stipulated that each locality has one.

Le Hoang Quan, chairman of the Ho Chi Minh City People’s Committee, suggested that social infrastructure be developed commensurate with the IPs infrastructure.

The plans to build houses for workers and other welfare construction projects should also be put into the IP construction planning, Quan said, adding investors developing housing projects for laborers should enjoy incentives from the government.

For her part, Nguyen Thi Nguyet Huong, chairwomen of the Vietnam Investment and Development Group, called on cutting red tape to attract investors.

The tax incentive policies should be continued, Huong added.

Tuoi Tre

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