Binh Phuoc IPs and EZs: Best Preparations to Serve Investors

Binh Phuoc province-based industrial parks and Hoa Lu International Border Gate Economic Zone are gaining more attention and becoming a favorite destination of many domestic and foreign investors. As an administer and provider of public services and supporting services, the Binh Phuoc Economic Zone Authority always welcomes and accompanies investors from the time they study investment and business opportunities to the time they operate their projects and business affairs. Mr. Nguyen Minh Chien, Director of the Binh Phuoc Economic Zone Authority, gives an interview to Vietnam Business Forum on this issue.
ong nguyen minh chien truong ban quan ly ktt tinh binh phuoc

Could you please briefly introduce the current overall picture of industrial zone development in Binh Phuoc province?

Binh Phuoc province has 13 industrial zones with a total area of 4,686 ha approved for establishment by the Prime Minister (Document 2162/TTg-KTN dated November 26, 2015 on adjustment to Binh Phuoc industrial park development planning to 2020). Currently, 11 industrial zones have infrastructure constructed and have attracted investors. By April 2021, they housed 334 tenants, including 232 FDI projects and 102 DDI projects with a total registered capital of US$2.485 billion and VND11,175 billion (US$500 million), which hired 1,132.4 ha of land.

Among 13 licensed industrial zones, nine planned 1,308 ha of area and leased 860 ha of land, with the occupancy rate of over 95%; two new industrial parks in operation (Becamex-Binh Phuoc Industrial Park - 2,448 ha and Minh Hung-Sikico Industrial Park - 655 ha) have an average occupancy rate of 17.5% and they are the strongest magnets to investors today. In addition, 104-ha Viet Kieu Industrial Park (invested by Minh Khang Investment and Development Joint Stock Company) is building infrastructure and 156-ha Tan Khai II Industrial Park (invested by C&N New Vina Joint Stock Company) is completing legal procedures for infrastructure development.

As many as 171 projects have gone into operation in industrial parks and employed more than 65,700 workers, including 1,430 foreigners.

The industrial production value of tenants in industrial parks reached US$450 million in the first quarter of 2021, up 10% year on year; their export value rose 15% to US$370 million; their import value climbed 25% to US$242 million; and their tax payment expanded 15% to US$204 billion. Tenants in industrial zones helped significantly boost industrial production value in the province’s economy and budget revenue.

In the 15 years since it was established (since 2005), how has Hoa Lu International Border Gate Economic Zone developed? After the master plan in 2010 and the partial adjustment in 2017, the province is asking the Prime Minister for revision to the master plan of Hoa Lu International Border Gate Economic Zone. Would you be kind enough to tell us the purposes of this adjustment?

Hoa Lu International Border Gate Economic Zone, covering 28,364 ha, had the master construction plan to 2025 approved by the Prime Minister (Decision 61/QD-TTg dated January 13, 2010). In order to attract investors, Binh Phuoc province mobilized central and local funds for infrastructure construction, including traffic routes for the core economic zone of 3,535 ha. To date, the Provincial People's Committee licensed 82 investors in the economic zone, which hired 2,000 ha of land, of which three investors were assigned to invest in 1,129-ha industrial zone infrastructure (two industrial zones ratified by the Prime Minister: 425-ha Ledana Industrial Park and 348-ha Hoa Lu Industrial Park). In these industrial zones, 34 tenants have begun operation and hired 600 local workers. Binh Phuoc province's proposal to the Prime Minister for revision of the development planning of Hoa Lu International Border Gate Economic Zone also aims to create opportunities to promote stronger socioeconomic development, while strengthening trade connections between Vietnam, Cambodia and Laos in the future.
khu cong nghiep minh hung sikico binh phuoc 1

Vietnam’s robust economic integration amid redirected global investment flow has opened up opportunities to attract investors into Binh Phuoc province-based industrial zones and Hoa Lu International Border Gate Economic Zone. So, how has the Binh Phuoc Economic Zone Authority prepared to grasp this opportunity?

Strong global economic integration, golden population structure and particularly successful control of the COVID-19 epidemic have made Vietnam an ideal destination for investors around the world to consider and choose. Binh Phuoc, with its favorable geo-economic location and untapped potential, has a great opportunity to promote and expand investment flows in the coming years.

In order to prepare a clean land fund to welcome the investment wave, the Economic Zones Authority actively advised the Provincial People's Committee on expansion of industrial parks and was approved by the Prime Minister for expanding 1,374.63 ha, including Minh Hung III (577.63 ha), Bac Dong Phu (317 ha) and Nam Dong Phu (480 ha).
cong kcn minh hung sikico binh phuoc

As for Hoa Lu International Border Gate Economic Zone, the authority also advised the Provincial People's Committee to submit to the Prime Minister for investment approval two industrial parks covering 773 ha, including Ledana Industrial Park (VND1,200 billion) and Hoa Lu Industrial Park (VND1,119 billion).

Besides, the authority is consulting the Provincial People's Committee on continued expansion of existing industrial parks and construction of new ones, and serviced residential areas in 2021-2025 and to 2030, including Sikico Industrial Park (1,000 ha), Industrial Park in Hoa Lu International Border Gate Economic Zone (300 ha), Dong Phu Urban-Industrial Park (6,317 ha) and Binh Phuoc Industrial Park (3,500 ha).

In the past, in addition to drawing external investment funds, the authority has persuaded existing investors to recommend the province to new ones and carry out online investment promotion events. Could you tell us more about this approach?

While strengthening domestic and foreign investment promotion, the authority attaches great importance to persuading existing investors to recommend other investors to bring their projects to the province. With this approach, the agency hopes to attract large investors with advanced environment-friendly technologies and entice their vendors to industrial and economic zones.

In order to increase investment attraction in the coming time, the agency is focusing on implementing some solutions as follows:

Regularly reviewing, adjusting and supplementing administrative procedures under its jurisdiction to simplify and quickly resolve investors and enterprises, organizing periodical dialogues to promptly remove business difficulties against businesses.

Speeding up planning, construction and expansion of industrial zones to provide a land fund for secondary investors; further reviewing and urging infrastructure investors to quickly complete infrastructure construction to give premises to new projects.

Advising the Provincial People's Committee to arrange capital for building external infrastructure; actively calling for construction of cultural institutions for workers such as social housing for workers, kindergartens and cultural locations for workers.

To increase investment fund amid the complicated development of the COVID-19 pandemic, in addition to localized investment promotion, the Economic Zones Authority has also coordinated with relevant agencies to advise the Provincial People's Committee to open online investment promotion events.

Given its potential and advantages, Binh Phuoc province is confidently becoming a chosen destination for investors far and wide who can be completely assured in doing business in the province for joint benefits.

Author: Vietnam Business Forum

Source: Vietnam Business Forum

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