Industrial zones target investors
Industrial zones target investors
More preferential investment promotion policies were needed to attract investors to industrial zones (IZs) and economic zones (EZs) in Viet Nam.
IZs and EZs had encountered many difficulties in fully carrying out their expected roles in the socio-economic development of the country in the past 20 years of development, according to head of Club of northern IZs and EZs' Management Boards Pham Thuyen.
Thuyen pointed out that one of the difficulties was the overlap in the management and the inconsistency of decentralised administration of IZs and EZs throughout the country.
The report of the Ministry of Investment and Planning pointed out that problems in IZs and EZs planning, environment pollution and a lack of infrastructure, especially accommodation for workers, also hindered the development of IZs and EZs throughout the country.
In addition, inefficient land use at IZs and EZs was also headache. The average percentage of land left fallow at IZs and EZs was reported to be about 30%.
According to deputy director of Ha Noi Management Board of Industrial and Processing Zones Ngo Chi Hung, a consistent and transparent management mechanism was critical for the development of IZs and EZs.
He added that preferential loans should be given to develop and improve the infrastructure system of IZs and EZs together with lowering the land lease fees and offering land use tax exemptions for worker housing projects.
In addition, incentives should be offered to attract more investments into IZs and EZs, which would help raise the efficiency of land use and also the infrastructure system.
Experts at a recent meeting held by the club of management boards also called for the institution of a law for economic zones and industrial zones to maintain consistent and adequate legal frameworks for development.
There are 276 IZs, 15 coastal EZs and 28 border EZs throughout the country, covering a total area of more than 1.3 million ha. EZs and IZs contribute more than 30 per cent of the annual industrial production value and 25 per cent of the export turn-over and provide jobs for more than 1.6 million people.
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