Economy: FDI attraction to northern industrial zones

Economy: FDI attraction to northern industrial zones  - ảnh 1
FDI inflows to Hanoi's IZs rise significantly in 2012

(VOVworld) – Despite the global economic woes in recent years, foreign direct investment has remained in Northern provinces, especially in industrial zones. This means foreign investors have recognized potential opportunities for either their new investment or expansion here. VOV looks at the issue

Last year, Vietnam’s Northern provinces attracted 6 billion USD of the country’s total FDI capital of 13 billion USD. Six out of the 10 most attractive provinces are in the north, including Hanoi, Hai Phong, Bac Ninh, Bac Giang, Quang Ninh, and Hung Yen. Despite difficulties, several mountainous northern provinces have even seen improvements, luring in an additional 1 billion USD of newly registered or supplemented capital. These achievements are attributed to joint efforts by ministries, sectors, and local authorities in conducting master-planning and combining economic and social infrastructure development. Other keys to its success are the improvement of legal documentation to create more incentives for industrial parks and the government’s support of infrastructure investment. Bui Quang Vinh, Minister of Planning and Investment, said ‘Although the government has provided some assistance, particularly for non-core business investment, industrial  park managers and operators should be more active in the handling of diverse capital resources to create breakthroughs in investment attraction.

Many big projects have been speeded up recently thanks to realizing policies for investment attraction in industrial parks (IPs). Kyocera Mita Corporation is a case in point. After having been granted an investment certificate in the VSIP Industrial Park in Hai Phong and after more than a year of construction, the Japanese company has turned out the first Kyocera printers made in Vietnam. More impressively, most of the investment projects in northern IPs are high-tech projects which cause no environmental pollution. They include Nipro Pharma Corporation with a project in VSIP Hai Phong producing high standard medicines, and Japanese Bridgestone Corporation who are investing in a project in Dinh Vu IP in Hai Phong to make automobile tires. Following this trend, Quang Ninh located in an important geographical position in the northern economic development triangle is trying to call for foreign investors in hi-tech and environmentally friendly technology, and hopes to attract Japanese investors to its industrial parks, including Viet Hung and Dong Mai. This year, Quang Ninh has targeted to attract 500 million USD for seven FDI projects. They include two on-going projects; the 150 million USD expansion of Hai Ha seaport, and a 35.5 million USD rare earth processing plant.

One of the changes in FDI attraction to northern IPs is that the development of the infrastructure has received due attention, ensuring assistance from investors. What Nam Sach IP in Hai Duong province has done is a typical example. Though it doesn’t have the advantage of maritime transportation, as in Hai Phong or Quang Ninh, Nam Sach IP has impressed investors with a well-equipped zone, which is up to international standards. To date, the entire zone has been fully leased, with 19 projects totaling more than 230 million USD, according to Pham Van Hong, Nam Sach IP’s Director. Hong explained further: ‘At the master-planning stage, we have taken into account synchronism and comprehensiveness, not only in the technological infrastructure but with regard to the social infrastructure and labor. When investors put their money into this IP, they consider carefully each public work; in return, we have provided them with timely support in drawing up projects and followed the required legal procedures. We also have a specialized section to deal with issues relating to investors’ operations and production.

FDI attraction to these industrial parks have recently contributed to Vietnam’s economic growth and improved the quality of its workforce. The achievements of FDI attraction in the northern provinces have illustrated the country’s correct policy on IP sustainable development, and have boosted local socio-economic development.