Investment in industrial parks and export processing zones in the Southern Key Economic Zone are showing signs of decline, officials said.
Tran Van Lieu, head of the Binh Duong industrial parks management, said this year there has been a 50 percent drop in investment in the southern province’s 28 industrial parks to 500 million USD.
The HCM City Department of Planning and Investment reported a similar situation in the city-based industrial parks and export processing zones, which attracted a mere 16.9 million USD.
Tay Bac Industrial Park in the suburban district of Cu Chi has received no investment.
In Dong Nai province, whose IPs are normally popular investment destinations, the second phase of the Nhon Trach 3 IP, which is under construction, has failed to attract any tenants this year.
Nguyen Thanh Binh, its director, blamed the slowdown on the scrapping of some land – and tax-related incentives for investors developing infrastructure in IPs.
Nguyen Van Thu, deputy director general of Tam Phuoc IP in Dong Nai, said the park, home to 80 percent of local timber processing firms, saw two of them shutting down and some others operate at half capacity due to lack of export orders from major markets like France and the US.
To help companies in distress, IP authorities are allowing them to defer tax and land lease payments and offering soft loans.
Lieu said IPs are attracting less investment because multinationals and other large companies are busy restructuring their businesses and going easy on fresh investments./.
Tran Van Lieu, head of the Binh Duong industrial parks management, said this year there has been a 50 percent drop in investment in the southern province’s 28 industrial parks to 500 million USD.
The HCM City Department of Planning and Investment reported a similar situation in the city-based industrial parks and export processing zones, which attracted a mere 16.9 million USD.
Tay Bac Industrial Park in the suburban district of Cu Chi has received no investment.
In Dong Nai province, whose IPs are normally popular investment destinations, the second phase of the Nhon Trach 3 IP, which is under construction, has failed to attract any tenants this year.
Nguyen Thanh Binh, its director, blamed the slowdown on the scrapping of some land – and tax-related incentives for investors developing infrastructure in IPs.
Nguyen Van Thu, deputy director general of Tam Phuoc IP in Dong Nai, said the park, home to 80 percent of local timber processing firms, saw two of them shutting down and some others operate at half capacity due to lack of export orders from major markets like France and the US.
To help companies in distress, IP authorities are allowing them to defer tax and land lease payments and offering soft loans.
Lieu said IPs are attracting less investment because multinationals and other large companies are busy restructuring their businesses and going easy on fresh investments./.
