Vietnam - IPs a growth engine for Can Tho city

Mekong Delta’s Can Tho city has driven industrial park development to a new level as it advances toward a major economic transformation by 2020.

In recent years, Can Tho city has made continual efforts to turn itself into an industrial-trade-services hub in the delta region. Contributions by industrial parks (IP) have been vital in advancing the goal.

According to the Can Tho Industrial and Export Processing Zone Authority, in the year to date, Can Tho IPs have attracted 13 new investment projects worth more than $51.8 million in total committed capital, which includes two foreign direct investment (FDI) projects, and revised investment certificates for other 15 projects.

From now until ending the year, the city’s IPs envision luring two more projects and ratifying two existing projects for expansion with $15 million in total investment capital.

To date, 206 investment projects remain in effect at the city’s IPs, of which 181 are operational, 18 are under construction and seven have yet to be deployed. Overall, these projects lease 854.5 hectares of industrial land and have total committed capital of more than $1.8 billion. Disbursed capital amounted to $810 million, tantamount to 43.8 per cent of total committed capital. This includes 22 FDI projects worth $181 million in total committed capital of this disbursed capital reached $162.3 million.

To facilitate investor business, Can Tho Industrial and Export Processing Zone Authority is scaling up efforts to accelerate administrative procedure reform with the application of internationally recognised ISO 9001:2008 standards and a compelling one-stop-shop mechanism for settling investment and business procedures.

To satisfy investors’ burgeoning demands for leasing land, Can Tho city has ramped up construction of IPs, considered vital to driving city’s socio-economic development and establish Can Tho as industrial hub before 2020. Can Tho city is also offering incentives and streamlined procedures to accelerate the transformation.

Can Tho is now home to six IPs having vast potential to attract investors since they offer convenient transport and are positioned in central agricultural and seafood material growing areas. These parks include Tra Noc I, Tra Noc II, Hung Phu I, Hung Phu II A, Hung Phu II B and Thot Not industrial parks.

Tra Noc I and Tra Noc II IPs, with a total planned area of 300 hectares, are 10 kilometres north of Can Tho city, 2km from Can Tho international airport and 3km from Can Tho seaport.

To date, Tra Noc I reports 123 projects worth $357.6 million in total committed capital and disbursed capital of $327.6 million tantamount to 92 per cent of total committed capital. This IP is one of those with the fastest industrial land occupancy rate in Vietnam.

Tra Noc II is home to 59 projects capitalised at $568 million with disbursed capital reaching $325.6 million tantamount to 57.3 per cent of total committed capital. Industrial land occupancy rate stays at 94.8 per cent. Some big enterprises in the IP are Can Tho auto manufacturing plant, Co Chien seafood, and Pepsico Vietnam Can Tho branch.

Three other IPs Hung Phu I, Hung Phu II A and Hung Phu II B are 4km away from Can Tho city centre. Adjacent to these IPs is Cai Cui port complex accessible to 10,000-20,000 dead weight tonnage ships fitted with state-of-the art loading equipment to handle modern port services, while road network links sync with National Highway 1A.

Investor requirements for power, safe water and telecom services are fully met. Priority investment areas at these IPs are mechanical engineering; electrical and electronic assembling, frozen and canned agricultural, seafood, cattle and poultry meat processing; building material production, pharmaceutical and cosmetic production, transport and import-export services.

Hung Phu I, covering 262ha and developed by Saigon-Can Tho IP, has attracted seven projects over 28.8ha land capitalised $103 million of which disbursed capital $48.2 million tantamount to 46.7 per cent of total committed capital.

Hung Phu II A, covering 134ha, has accommodated four projects of 15.2ha valued at $78 million in total committed capital. Disbursed capital reaches $20.6 million, tantamount to 26.3 per cent of total committed capital.

Hung Phu II B, covering 67ha nearby Hung Phu II A and developed by Can Tho IP Infrastructure Construction Company Limited, is in the site clearance stage.

Thot Not IP, 60km north of Can Tho, faces National Highway 91 in the south and Hau River in the north, convenient for both land and waterway transport. The 600ha IP sits on fruitful agricultural and seafood material areas.

Thot Not IP has attracted 11 investment projects valued at $172 million of this disbursed capital amounted $87.8 million, tantamount to 51 per cent of total committed capital. IP enterprises mainly operate in agricultural and seafood processing and mechanical engineering serving agriculture and rural areas as well as urban development.

Besides these six IPs, Can Tho city is engaged in planning the 600ha O Mon IP and 400ha North O Mon IP which are positioned in O Mon district, 20km from the heart of Can Tho city. IP businesses report an estimated $1.87 billion in total full-year revenue, sliding 9.7 per cent on-year on the back of persistent economic woes. Of this, $1.365 billion would come from industrial production value, $505 million from trade and services and $575 million from export.

Albeit facing mounting difficulties, IP businesses contributed VND2.053 trillion ($98.7 million) to state coffers, representing more than 30 per cent of Can Tho city’s total budget revenue. A total of 34,214 labourers are working at Can Tho IPs, including 30,255 direct and 3,959 seasonal workers. Labor intensive IPs are Tra Noc I with 17,304 labourers, following by Tra Noc II 11,550 labourers, Thot Not 4,395 labourers, Hung Phu I 443 and Hung Phu II 522 labourers.

IP businesses have contributed to lifting Can Tho city’s economic development. IPs not only help the city attract investors, facilitate social and economic development and provide jobs, but also lay premises to help turn Can Tho into an industrialised location before 2020.

vir.com.vn

Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Health care and Life Science with expertise in ASEAN 's area. We are currently changing the platform of www.yourvietnamexpert.com, if any request, please, contact directly Dr Christian SIODMAK, business strategist, owner and CEO of SBC at christian.siodmak@gmail.com. Many thanks.