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Real estate
Industrial Zones Become Face of Modern Vietnam(14/12/2010)
(VEN) - Twenty years since they were first
established in Vietnam, industrial zones (IZs) have become a symbol of
modernization and foreign direct investment (FDI) attraction in the
country. However, IZs need to improve their investment quality and
efficiency if they are to achieve sustainable growth.
In
October 1991, the Government issued Decree 322/HDBT governing export
processing zones. One month later, the Tan Thuan Export Processing Zone
was established.
There
are currently 233 industrial, export processing and hi-tech zones
throughout Vietnam. One hundred seventy-one have begun operations and 52
central IZs are or will be under basic construction. Apart from these,
there are thousands of IZs for small- to medium-sized businesses managed
by local authorities (excluding the 14,000-hectare Dung Quat economic
zone).
The
Ministry of Planning and Investment said that under the plan to 2020,
Vietnam would build an additional 106 IZs and 26 existing IZs will be
expanded.
Current
industrial and export processing zones have attracted more than 7,000
domestic and foreign investment projects that made a total production
value of more than US$33 billion (accounting for 29.2 percent of the
country's total) and provided direct jobs for more than 1.5 million
people.
Inadequate
infrastructure, environmental pollution, lack of skilled workers,
ineffective site clearance and related resettlement are all deterring
industrial zone development.
Dr.
Vu Thanh Tu Anh, from the Fulbright Economics Teaching Program, said
that it is necessary to have the right point of view about investment
efficiency and quality rather than to rush into constructing industrial
zones. They should not only be designed for production but also for
other activities, he said. In Vietnam, industrial zones have just been
places for investors to build factories.
In
other countries, however, successful industrial zones function as
complete industrial cities. In Thailand for example, they have trade
centers and residential areas apart from industrial production
facilities, while in Chinese Taipei, large industrial zones founded in
recent years are central and complete industrial urban areas.
Amata
Vietnam Industrial Park Group General Director Huynh Ngoc Phien said
that Amata began construction of one more 20ha trade center to turn the
industrial park into a complete industrial urban area. There is a
complete industrial town in Dong Nai Province. The My Phuoc Industrial
Zone in Binh Duong Province is realizing its target to become an
industrial town that not only has factories but also urban areas with
trade and entertainment centers./.
By Thanh Thanh
