Hiep Phuoc Industrial Park in Nha Be district remains one of the largest IPs in Vietnam. (Photo: tapchitaichinh.vn) HCM City (VNS/VNA) - Experts have recommended a numberof measures to increase foreign direct investment (FDI) in Ho Chi Minh City’s exportprocessing zones (EPZs) and industrial zones (IPs).
Infrastructure in the EPZs and IPs, most of which were set up in the 1990s, hasdeteriorated, especially wastewater treatment facilities. A number ofcentralised wastewater treatment systems, for example, have been found inviolation of environmental regulations.
In addition, many enterprises that want to expand their business facechallenges as available land for rent in IPs and EPZs is limited and rentalprices are too high compared to EPZs and IPs in neighbouring provinces.
Roads near EPZs and IZs are often overloaded, leading to higher productioncosts and reducing the competitiveness of enterprises.
Other problems include flooding and traffic congestion, which increases logisticscosts for businesses.
A lack of investment in schools, accommodations and hospitals for workers inEPZs and IPs is another problem facing IPs and EPZs in HCM City.
The limited number of highly skilled staff for IT and management positions isan issue as well, while hiring of manual labourers can also be difficult,especially after the Lunar New Year (Tet) holiday when workers often do notreturn to their jobs, according to a representative of Saigon Precision Co.,Ltd.
In addition, many enterprises in EPZs and IPs have not received their land-useright certificates, making it difficult for them to complete loan procedures sothey can expand operations.
Simplification of administrative procedures related to investment, labour andconstruction in the EPZs and IPs is needed to attract foreign investments inthe areas, according to experts.
Improvement of the quality of workers’ life and working environment isnecessary as well.
Nguyen Hoang Nang, head of the city’s Export Processing Zones and IndustrialParks Authority (Hepza), said the management board has been working withinvestors to improve technology and infrastructure in EPZs and IPs, includingaccommodation, schools and hospitals.
As many as 16 housing projects providing 21,417 accommodations for workers, and21 pre-school projects for workers’ children, have been proposed, he said.
Regarding the issue of land-use right certificates, the HCM City People’sCommittee has asked the Department of Natural Resources and Environment tospeed up the issuance of land-use right certificates for eligible enterprisesin the EPZs and IPs.
Vu Minh Hung, director of environment, health, safety and sustainability atUS-based First Solar, which makes semi-conductors, said companies must improveworking conditions to retain and attract highly skilled employees.
HCM City has 17 EPZs and IPs covering a total area of more than 2,570 hectares.The city targets having 23 “green” and high-tech EPZs and IPs on an area ofroughly 6,000 hectares by 2020.
The zones are expected to attract some $6-8 billion of investment capitalduring the 2016-2025 period.
Nang said the city would shift existing zones into green, clean and hi-techones by 2025 and develop new hi-tech zones for parts supply industries.
Priority would be given to current investors in hi-tech development, 4.0industry technologies, and parts supply industries that generate high addedvalue.
To lower land rentals, the city needs to improve the efficiency of land use andworkers’ skills. Linkages with other zones in the southern region and otherbusinesses in the city are also needed, experts said.
As of the end of last year, EPZs and IPs in the city had attracted 772.31million USD, according to Hepza. However, foreign investment in the city’s EPZsand IPs were worth 290.83 million USD last year, a drop of 25.78 percent over2017.
Most projects were in technology-oriented industries, including foodprocessing, chemical-rubber, mechanical, information technology, and thesupporting industry.-VNS/VNA
Infrastructure in the EPZs and IPs, most of which were set up in the 1990s, hasdeteriorated, especially wastewater treatment facilities. A number ofcentralised wastewater treatment systems, for example, have been found inviolation of environmental regulations.
In addition, many enterprises that want to expand their business facechallenges as available land for rent in IPs and EPZs is limited and rentalprices are too high compared to EPZs and IPs in neighbouring provinces.
Roads near EPZs and IZs are often overloaded, leading to higher productioncosts and reducing the competitiveness of enterprises.
Other problems include flooding and traffic congestion, which increases logisticscosts for businesses.
A lack of investment in schools, accommodations and hospitals for workers inEPZs and IPs is another problem facing IPs and EPZs in HCM City.
The limited number of highly skilled staff for IT and management positions isan issue as well, while hiring of manual labourers can also be difficult,especially after the Lunar New Year (Tet) holiday when workers often do notreturn to their jobs, according to a representative of Saigon Precision Co.,Ltd.
In addition, many enterprises in EPZs and IPs have not received their land-useright certificates, making it difficult for them to complete loan procedures sothey can expand operations.
Simplification of administrative procedures related to investment, labour andconstruction in the EPZs and IPs is needed to attract foreign investments inthe areas, according to experts.
Improvement of the quality of workers’ life and working environment isnecessary as well.
Nguyen Hoang Nang, head of the city’s Export Processing Zones and IndustrialParks Authority (Hepza), said the management board has been working withinvestors to improve technology and infrastructure in EPZs and IPs, includingaccommodation, schools and hospitals.
As many as 16 housing projects providing 21,417 accommodations for workers, and21 pre-school projects for workers’ children, have been proposed, he said.
Regarding the issue of land-use right certificates, the HCM City People’sCommittee has asked the Department of Natural Resources and Environment tospeed up the issuance of land-use right certificates for eligible enterprisesin the EPZs and IPs.
Vu Minh Hung, director of environment, health, safety and sustainability atUS-based First Solar, which makes semi-conductors, said companies must improveworking conditions to retain and attract highly skilled employees.
HCM City has 17 EPZs and IPs covering a total area of more than 2,570 hectares.The city targets having 23 “green” and high-tech EPZs and IPs on an area ofroughly 6,000 hectares by 2020.
The zones are expected to attract some $6-8 billion of investment capitalduring the 2016-2025 period.
Nang said the city would shift existing zones into green, clean and hi-techones by 2025 and develop new hi-tech zones for parts supply industries.
Priority would be given to current investors in hi-tech development, 4.0industry technologies, and parts supply industries that generate high addedvalue.
To lower land rentals, the city needs to improve the efficiency of land use andworkers’ skills. Linkages with other zones in the southern region and otherbusinesses in the city are also needed, experts said.
As of the end of last year, EPZs and IPs in the city had attracted 772.31million USD, according to Hepza. However, foreign investment in the city’s EPZsand IPs were worth 290.83 million USD last year, a drop of 25.78 percent over2017.
Most projects were in technology-oriented industries, including foodprocessing, chemical-rubber, mechanical, information technology, and thesupporting industry.-VNS/VNA
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