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Ho Chi Minh City transform its industrial parks to attract more investment capital

Currently, the biggest difficulty of industrial parks in Ho Chi Minh City is the land fund to attract investment in large projects.


In the first quarter of the year, total investment capital including newly granted and adjusted capital in export processing zones and industrial parks in Ho Chi Minh City reached US$90.14 million, up more than 21% over the same period. However, new capital from foreign investors decreased by nearly 86%, reaching only 2.17 million USD. Therefore, in the coming time, Ho Chi Minh City has introduced many measures to attract investment in export processing zones and industrial parks; remove obstacles to industrial parks that have been established but have not yet implemented projects, or support the establishment of new industrial parks.



Mr. Hua Quoc Hung, Head of the Management Board of Industrial and Export Processing Zones (Hepza) in Ho Chi Minh City said that in the first quarter of 2023, newly granted investment capital decreased sharply, especially since there were no big projects, no projects. leading and pervasive projects. Newly licensed FDI enterprises focus on processing and manufacturing industries and 100% of existing factory leaseback projects are located in industrial zones.


Currently, the biggest difficulty of industrial parks in Ho Chi Minh City is the land fund to attract investment in large projects. The clean land fund that can attract investment is 351 ha. However, many land plots have not yet prepared the ground and technical infrastructure. So in 2023, the latest updated data is that only about 41 hectares can be rented out immediately. This land is also scattered, not concentrated, and has a small area, only 5,000 - 10,000m2. This is one of the difficulties for the city in attracting large investment projects. Some industrial parks established in the early stages lack social infrastructure facilities to serve workers, not meeting the needs of more than 71% of laborers from the provinces. The quality of human resources has not yet met the needs of restructuring investment…


“On the other hand, by 2041 and a number of subsequent years, there will be a number of export processing zones and industrial parks starting to expire the lease term of the state land. Along with that, the space around a number of export processing zones and industrial zones is already very densely populated and is a developed urban area. Therefore, it is necessary to define an appropriate roadmap to gradually transform existing export processing zones and industrial zones into more efficient industrial park models; Restructuring industries towards high technology, green industry, participating in the global production chain; reduce labor-intensive, land-intensive industries, increase technology-intensive industries,” said Mr. Hung.


However, although FDI decreased deeply, the land area used decreased by 85% compared to the same period in 2022 (14.30 ha), but the factory area for lease in the first months of 2023 increased by 6 times, to 52,825m2. This shows that the demand for renting small factories and offices of investors in Ho Chi Minh City is very high. There is no large land fund, and Ho Chi Minh City is somewhat at a loss in attracting investment, but many foreign businesses, when they come to Vietnam, want to be present in Ho Chi Minh City, even though the rental price is real. Industrial real estate has higher.


Orientation for the development of export processing zones and industrial zones of Ho Chi Minh City in the period of 2023 - 2030 and a vision to 2045, Mr. Vo Van Hoan, Vice Chairman of the People's Committee of Ho Chi Minh City directed the delivery of Hepza in 2023. complete the formulation of policies to implement the project on the transformation of export processing zones and industrial parks, including integrating the plan to develop the industrial zone system into the city plan for the period 2021-2030, vision to 2050; general planning of the city to 2040, vision to 2060; technological criteria of enterprises in export processing zones and industrial parks; policies to support enterprises in technological innovation or relocation from export processing zones and industrial parks; preparing land fund to receive relocation enterprises, policies on training human resources for the technology transformation of enterprises...


“For the project of pilot transformation of 5 export processing zones and industrial zones: Tan Thuan, Tan Binh, Cat Lai, Hiep Phuoc, and Binh Chieu, assign Hepza to work with the City Development Research Institute to agree on the project to Launched in June 2024. Moving the conversion time to 2024 (instead of June 2023), so that the units have time to do more research and propose policies to serve the transformation to be appropriate, feasible, and in accordance with regulations, Mr. Hoan said.


(Thoi bao Ngan hang)




List of companies in Industrial & Cluster parks in HCMC:


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