Bac Kan Industrial Parks Management Board Proactively Supporting Businesses and Attracting Investment

11:28:42 AM | 8/20/2024

Understanding the needs of investors, Bac Kan Industrial Parks Management Board is carrying out many practical tasks and solutions, with focus on supporting businesses, completing infrastructure and actively attracting investment, to achieve its targets assigned by the Provincial People's Committee. Mr. Hoang Van Khoi, Director of the board, grants an exclusive interview on this content to Vietnam Business Forum.

Ke Go Co., Ltd is a standout example of effective business operation in Thanh Binh Industrial Park

Investment promotion and attraction into Thanh Binh Industrial Park has been accelerated with many diverse forms and produced many positive results. Could you tell us some outstanding results?

According to the resolution of the Provincial Party Congress (2020 - 2025 term), Bac Kan defined industrial development based on local potential advantages, including agricultural and forest product processing, lead and zinc mining. In particular, the province focused on building Thanh Binh Industrial Park into an agricultural and forest industrial production center to boost the development of its agriculture and forestry.

According to the Investment Promotion Program for Industrial Parks in 2021 - 2025 of the Provincial People's Committee, the Bac Kan Industrial Parks Management Board has actively worked out many forms of investment promotion and attraction plan, focusing on on-site investment promotion by supporting businesses, building local mechanisms and policies to facilitate investment attraction, and planning new industrial parks.

Currently, Thanh Binh Industrial Park has 14 tenants, with eight in operation. They generate combined revenue of about VND1,000 billion and an export value of about US$20 million a year and create jobs for about 1,000 workers.

However, investment attraction into industrial parks has recently been slowed down mainly due to limited remaining industrial land with infrastructure for lease. Meanwhile, building industrial parks takes a lot of time. Therefore, in the coming time, the board will focus on calling for funding to finance the industrial park planning and calling for investors to build industrial park infrastructure.

The promotion of investment in the industrial park has generated thousands of local employment opportunities In the photo: Workers at Ke Go Co., Ltd

Currently, businesses here all want the provincial government, the Bac Kan Industrial Parks Management Board and relevant agencies to pay attention to investing and completing industrial park infrastructure. So, in the coming time, what will the board do and advise the Provincial People's Committee on completing industrial park infrastructure?

Clearly identifying the very important role of industrial parks in increasing the value of industrial production in the province, the board advised on integrating the industrial park development plan into the Bac Kan Provincial Planning for the 2021 - 2030 period, with a vision to 2050 approved by the Prime Minister in Decision No. 1288/QD-TTg dated November 31, 2023, targeting to build a total area of 2,361 ha. The planned industrial parks are all conveniently located, conveniently connected to existing technical infrastructure, near to input supply sources. They all meet sectoral development plans and easily attract investment projects.

In the coming time, the board will actively advise on completing zoning plans for industrial park construction to attract infrastructure investors. At the same time, the agency will also advise the Provincial People's Committee to report the revised industrial park land fund to the Ministry of Natural Resources and Environment and the Prime Minister.

Currently, the board is investing in completing the remaining area of 14ha of the first phase of Thanh Binh Industrial Park, expanded by 7.2 ha.

How is the preparation of documents for the investment and construction of the second phase of Thanh Binh Industrial Park, which is expected to be submitted to the Prime Minister for approval? How has the board sped up the approval of Cho Moi 1 Industrial Park and Cho Moi 2 Industrial Park to call for infrastructure investors?

Regarding the infrastructure investment project for the second phase of Thanh Binh Industrial Park, the management board has actively supported investors to deal with investment procedures. Currently, the selected investors have completed and submitted dossiers to the Ministry of Planning and Investment for consideration. At present, due to some changes in this project, the ministry is seeking additional opinions from the Ministries of Natural Resources and Environment, the Ministry of Agriculture and Rural Development, the Ministry of Finance and the Provincial People's Committee. The project is expected to be approved in principle in 2024 and commenced construction in 2025.

With respect to construction zoning plans for Cho Moi 1 and Cho Moi 2 industrial parks, based on the planning fund ratified by the Provincial People's Committee, the Bac Kan Industrial Parks Management Board is currently working out a construction zoning plan which will be the basis for considering and approving infrastructure investment and operation business project. Therefore, the board will actively advise the Provincial People's Committee to approve the plan soon to lay the groundwork for calling for investors.

Thank you very much!

Bac Kan province advantageously has more than 413,000 ha of forest land, accounting for 85% of its total natural land area, including over 372,000 ha with forest (272,000 ha of natural forest and over 100,000 ha of planted forest), capable of harvesting more than 305,000 cubic meters of timber. In recent years, the province has made efforts to become a “timber production and processing center of the northern midland and mountainous region”. With its good investment attraction policies and the huge potential of the wood processing industry, many enterprises have come to invest in Bac Kan. Overcoming all difficulties in the way, especially volatile consumption and export markets, in 2024, Bac Kan province-based wood companies have steadfastly reinforced their market positions, actively sought their own ways, boldly invested in expanding production, and diversified product development to meet market demands.

As a well-performing tenant in Thanh Binh Industrial Park, Ke Go Co., Ltd is currently the first and only to have a wooden knife, spoon and fork factory in Vietnam. KEGO's mission is to help push back the current very serious plastic waste pollution in Vietnam and in the world as well. The company continues to invest in machinery and improve the quality of its key products such as knives, spoons and forks made from environmentally friendly wood to meet orders from the US, Canada, Germany, France, New Zealand, and Japan. Since the beginning of this year, the company has maintained stable jobs for nearly 50 employees and exported over 15 million products of all kinds.

Mr. Trinh Duc Kien, Deputy Director of Ke Go Co., Ltd, said: "To expand production, the company is applying for an additional one hectare of land in Thanh Binh Industrial Park to build more factories and production lines because the current factory area is only 2,000 square meters (0.2 ha), difficult for it to expand production scale. In 2024, the company aims to increase output from 8 million products to 15 million products a month. To raise the value of planted forest wood, in 2024, the company has focused resources on coordinating with local authorities and people to complete procedures for FSC certification and sustainable forest certification for about 2,000 ha of planted forests in Cho Don and Bach Thong districts.

Expressing his satisfaction with the company’s investment in Thanh Binh Industrial Park, he added: “When exploring investment opportunities here, we received a warm welcome from the Bac Kan Industrial Parks Management Board. In investment preparation, the board actively facilitated us to complete procedures for land lease and factory construction, seek input sources and recruit employees. In the coming time, we hope that Bac Kan authorities will make us more confident about doing business here.”

By Duy Anh (Vietnam Business Forum)