January 24, 2022 | 18:54 GMT+7

Localities keen to attract FDI projects to IPs

Tra My - Ban Mai -

Provinces around Vietnam are looking to pull in FDI into their industrial parks (IPs) by making use of their advantages and offering investment incentives.

Photo: Illustration
Photo: Illustration

As of December 20, according to the Ministry of Planning and Investment, Vietnam had attracted a total of $31.15 billion worth of FDI in 2021, up 9.2 per cent year-on-year. Inflows not only focused on key economic zones in the north and the south but also on areas of potential all around the country, according to Cushman & Wakefield.

Southern Binh Duong province is urgently researching and establishing a science and technology industrial park, according to Mr. Nguyen Thanh Trung, Deputy Head of the Binh Duong Industrial Park Management Board. The completion and operation of the Vietnam-Singapore Industrial Park III and the Cay Truong Industrial Park will also provide an additional 1,700 ha of land. The province has set a goal of leasing and subleasing land from 100-150 ha and attracting $1.2-1.3 billion of FDI in 2022.

Neighboring Dong Nai province will continue to prioritize industrial development to support the economy. Industrial parks in the province have attracted more than 2,000 projects in total, of which 1,380 are FDI projects, with total registered capital of nearly $27.6 billion. Nearly 1,800 projects have been put into operation, earning annual revenue of $25 billion.

In northern Bac Ninh province, industrial parks have attracted 1,716 projects, including 1,175 FDI projects, with new and additional investment of over $22.1 billion. According to Mr. Nguyen Van Phuc, Head of the Management Board of Industrial Parks in Bac Ninh, the province will promote the attraction and development of existing industrial parks and clusters.

Nearby Vinh Phuc province attracted $1.1 billion of FDI in 2021. It now has 429 valid FDI projects, with total registered investment capital of $7.1 billion, and has introduced many preferential policies to attract investment, such as preferential taxes or lower taxes.

Localities need to have new plans to attract investors if they hope to compete. Specifically, in existing industrial park models, most land for lease is for production, limiting investment in logistics centers. Mr. John Campbell, Manager of Industrial Services at Savills Vietnam, suggested that industrial park projects create mixed industrial projects by zoning land for logistics, cold storage, data centers, and research and development centers.