The Ministry of Planning and Investment (MPI) organised a seminar on policies to develop industrial zones (IZ), export processing zones (EPZ) and economic zones (EZ) in Hanoi on Nov. 23, aiming to find solutions to the removal of policy-related obstacles.

From small beginings in 1991, when the first IZ – Tan Thuan IZ – began operation, Vietnam now has a total of 253 IZs, EPZs and EZs.

Through 20 years of development, these zones have made major contributions to the country’s socio-economic development. They have deserved their leading role in economic development, moving an economic restructure towards a higher proportion of industries and services, and assisting the industrialisation and modernisation process in localities, particularly those in difficulties.

By September 2010, the IZs, EPZs and EZs had attracted 52 billion USD in foreign investment capital. They generated jobs for nearly 1.5 million workers and obtained an industrial production value of 20-25 billion USD. From a proportion of 17 percent in 1991, these zones now make up 30 percent of the country’s total industrial production value.

However, investment flows into these zones have stumbled, with difficulties including influences from the global economic recession forcing investors to reduce or delay projects.

Participants at the seminar focused discussions on impacts of the State’s new policies and instructions on business income tax, land use, land prices, and the State budget for infrastructure construction in IZs.

They also stressed the overlapping of legal documents and new problems to be solved such as the granting, re-granting and extension of labour licences to foreigners, salary scales, and registration for labour training plans.

Vu Van Hoa from the Ho Chi Minh City Export Processing and Industrial Zone Authority (HEPZA) suggested the government continue incentives for investors to expand their investment projects, and include IZs in the list of prioritized areas for investment.

Sharing his idea, Tran Duy Dong, Vice Head of MPI’s Economic Zones Management Department, said in addition to incentives for investors, attention should be paid to environmental protection and housing and living conditions for labourers, in order to ensure the sustainable development of IZs./.