City’s IPs, EPZs to attract 2.4 times more investment per hectare by 2025
City’s IPs, EPZs to attract 2.4 times more investment per hectare by 2025
The HCM City Industrial and Export Processing Zones Management Board (HEPZA) has set a target to increase the average investment per hectare of industrial land to US$15 million by 2025 from a current $6.32 million.
Speaking at a meeting on Thursday, Hua Quoc Hung, head of HEPZA, said that to achieve the goal, HEPZA would continue to promote investment incentives, enhance support for businesses to stabilise operations, and step up administrative reform.
Currently, each hectare of industrial land at IPs and EPZs in HCM City attracts $6.32 million worth of investment, generating $46.71 million worth of exports and creating jobs for more than 144 workers.
After 30 years of construction and development, IPs and EPZs in the city have gained certain achievements and made positive contributions to the industrialisation and modernisation of the country, according to Hung.
HEPZA aims to convert IPs and EPZs in HCM City into eco-industrial and high-tech zones by 2030, aiming to replace labour-intensive firms and those using outdated technologies in IPs and EPZs.
HEPZA plans to pilot the programme at four IPs: Tan Thuan EPZ in District 7, Tan Binh IP in Tan Binh District, Hiep Phuoc IP in Nha Be District, and Cat Lai IP in Thu Duc City.
Hiep Phuoc IP is selected to be the first in HCM City to pilot the model, according to Hung.
HEPZA also wants to build two new industrial zones in Binh Chanh District, the 320ha Le Minh Xuan 2 Industrial Park and 670ha Pham Van Hai Industrial Park, to house clean, advanced and high-tech industries.
There, however, remain certain challenges such as inefficient use of resources, unsecured energy and water resources, and their negative impacts on the natural environment and living environment of nearby residents, according to Hung.
The quality of human resources remains an issue in IPs and EPZs with the proportion of workers with university degrees dropping from 11 per cent in 2006 to 8 per cent this year, according to HEPZA’s statistics.
More than 281,000 workers are working in EPZs and IZs in the city, accounting for 6 per cent of the city’s employees.
Nguyen Van Nen, secretary of the HCM City Party's Committee, urged HEPZA to develop new industrial park models and develop criteria for attracting investment in the city’s EPZs and IZs.
He also asked HEPZA to develop high-rise factories to improve land-use efficiency, monitor the land use by investment projects, and take back land from tardy projects.
It will need to work with banks and authorities to help enterprises access loans, hire employees, build accommodation for employees, and resolve other difficulties.
EPZs and IZs in the city attracted $601 million of investment last year, well above the target, including foreign investment of $220 million, according to HEPZA.
As of the end of September, they had attracted 1,674 projects worth more than $12 billion, of which foreign investment accounted for 45 per cent.
They attract more than $260 million in foreign investment annually, accounting for 58 per cent of the city’s foreign investment.
The city has 17 IPs, EPZs and high-tech parks covering a total area of more than 3,800 hectares. It targets having 23 ‘green’ high-tech EPZs and IPs covering 6,000ha.
Tan Thuan Export Processing Zone was the country’s first EPZ established in 1991.
