Focused Leadership Drives Industrial Park Development Forward

Recognizing the development of industrial parks (IPs) as a key driver for enhancing investment attraction and socioeconomic growth, Vinh Phuc province leaders have placed emphasis on this area. They have directed relevant agencies to collaborate and offer comprehensive support to investors in IP infrastructure.

Chairman of the Provincial People's Committee Tran Duy Dong inspects Song Lo II Industrial Park

To promptly grasp construction progress and remove obstacles for new IP infrastructure investment projects in the province, Chairman of the Provincial People's Committee Tran Duy Dong and the provincial working delegation have continuously worked and inspected the progress of IP infrastructure investment projects in Vinh Phuc province. Specifically, on August 23, 2024, Dong directly probed into the progress of infrastructure investment projects in Song Lo I and Song Lo II industrial parks (Song Lo district) and Thai Hoa-Lien Son-Lien Hoa Industrial Park, Zone II, Phase 1 (Lap Thach district).

Song Lo II Industrial Park has a total investment capital of more than VND1,500 billion. Up to now, Song Lo district has handed over 152 ha (over 92% of the total area) to the investor for infrastructure construction. The investor has spent more than VND561.5 billion for infrastructure construction, land compensation and site clearance. The current difficulty of Song Lo II Industrial Park is the remaining uncleared area because the resettlement area for households has not been arranged. Besides, the investor has found it hard to seek soil for site leveling and foundation and determine land rental prices to attract secondary investors.

Costing VND774 billion, the Thai Hoa-Lien Son-Lien Hoa Industrial Park (Zone II, Phase 1) is situated on 145 hectares in Hoa Son town, Lien Son commune, and Lien Hoa commune, within Lap Thach district. The area needed for site clearance is 117 ha. To date, the remaining land area needed for land compensation and site clearance is only over 13 ha. To speed up the construction investment, the investor recommended that Vinh Phuc province should focus on addressing key issues such as land compensation and site clearance, determining land rental prices, providing material sources for site leveling and foundation work, and securing capital to complete resettlement construction.

Appreciating the effort of the infrastructure investor in speeding up the project progress, Dong requested relevant agencies and localities to keep clearing obstacles, especially in land compensation for site clearance, determine land prices, relocate graves, tombs and obstacles out of the project boundary. He urged the investor to focus on completing the comprehensive technical infrastructure and to prioritize the early construction of the waste treatment plant.

He assigned the Department of Finance to review all industrial park projects falling short of capital for resettlement area construction to balance loans for localities from the Provincial Land Development Fund. Regarding land rent pricing, Dong requested the Department of Natural Resources and Environment to urgently complete consultation and make a report to the Provincial People's Committee as soon as possible. He asked the People's Committees of Song Lo and Lap Thach districts to closely coordinate with investors and relevant agencies to speed up land compensation, site clearance and resettlement arrangements. The IP infrastructure investor must be more determined to complete the project as soon as land is available and pay attention to completing the waste treatment plant as soon as possible.

Previously, on August 15, Chairman of the Provincial People's Committee Tran Duy Dong also hosted a working meeting with Thang Long Vinh Phuc Industrial Park Co., Ltd on its proposal to continue research and implementation of its project in Binh Xuyen-Yen Lac 1 and 2 industrial parks. At the meeting, he briefed on the province’s socioeconomic performance, investment results and investment and business environment improvements since the beginning of the year. On investment, the province attracted more than US$470 million, more than the annual target. Notably, on August 14, the Provincial People's Committee witnessed the signing ceremony of a US$100 million cooperation agreement of an FDI project on semiconductor manufacturing in Vinh Phuc. This proved that Vinh Phuc continues to be an attractive destination for investors. Dong highly appreciated Japanese investors, including Sumitomo Corporation, which have very effectively invested in the province, strictly respect Vietnamese laws, ensured policy interests for workers and actively contributed to local socioeconomic development.

Also at the meeting, the leader of Thang Long Vinh Phuc Industrial Park Co., Ltd said that Thang Long Vinh Phuc is the 4th in the industrial park system of Sumitomo Corporation in Vietnam. Its industrial parks have attracted 250 companies with about US$6 billion of investment capital and created jobs for over 90,000 workers. Thang Long Vinh Phuc IP alone has attracted US$1 billion of investment capital, with more than 90% of the rentable area leased by tenants, and provided jobs for more than 10,000 workers. In the new development phase, Thang Long Vinh Phuc Industrial Park Co., Ltd hoped to receive more support from the province for expansion and it submitted a written proposal in Binh Xuyen-Yen Lac 1 and 2 industrial parks. These facilities will help draw more FDI funds into Vinh Phuc.

Acknowledging and appreciating the development of the company, the fields in which it is attracting investors in the province and its future expansion strategy, Dong agreed in principle to the company's expansion and investment in Vinh Phuc province. He recommended that the company evaluate and choose between Binh Xuyen-Yen Lac 1 and 2 industrial parks, assess the investment phases, complete the necessary procedures, and submit a proposal to the province for consideration and approval. At the same time, the Vinh Phuc Industrial Parks Management Board, the Department of Planning and Investment, and other relevant units will coordinate, guide, and support the company in completing investment procedures in line with the master planning, land use plans, industrial development plans, and investment attraction strategies of Vinh Phuc province.

Indeed, his working sessions and field inspections in industrial parks are important, allowing for the timely and effective resolution of challenges faced by industrial park infrastructure investors. This demonstrates Vinh Phuc's commitment to improving the investment and business environment, supporting investors and businesses, and establishing itself as one of the most attractive and successful destinations in the country.

By Tran Trang, Vietnam Business Forum