ASIA NEWS NETWORK
WE KNOW ASIA BETTER
HCM City to upgrade industrial parks
Publication Date : 14-10-2013
HCM City has approved an adjustment of master plans by the HCM City EPZ Authority (HEPZA) that will make its industrial parks (IPs) and Export Processing Zones (EPZs) more attractive to investors.
Under the plan, the Phong Phu IP would be developed into a hi-tech complex housing environmentally safe factories, while four other industrial complexes, Sai Gon Agriculture Corp (89 hectares), Da Phuoc (90 hectares); Bau Tran (95 hectares); and Pham Van Coi (75 hectares), will be turned into IPs.
In the final months of 2013, HEPZA will help companies gain access to sources of capital and to expand markets for their products, which will help create more jobs.
According to HEPZA figures, as of late September 3, HCM City's IPs and EPZs employed about 270,000 people.
In the first nine months of the year, investment flows into enterprises in HCM City IPs and EPZs amounted to US$480 million, accounting for 96 per cent of the year's target and up by 48.22 per cent compared with the same period last year.
These investments include foreign direct investment (FDI) of $341 million, with an additional investment of $95 million into Nidec Tosok's project and a capital expansion of $129 million for the Sai Gon Precision project.
As of September 30, the city's IPs and EPZs contain 1,263 investment projects with total capital of $7.5 billion, including 502 FDI projects capitalised at $4.526 billion and 761 domestically-invested projects with total investment of 44.3 trillion dong ($2.95 billion).
Due to the economic crisis, 99 of these 1,253 investment projects in IPs and EPZs this year have suspended operations and 24 were dissolved.
Thirty-five others, mainly those specialising in textiles and garments, construction materials, interior decor and electrical equipment, cut back on production by 20 to 30 per cent.
According to HEPZA, the biggest problem facing companies is not capital but consumption.
There has been no sign of a recovery or increase in number of orders for IP and EPZ enterprises in HCM City, even though the State Bank of Vietnam's HCM City branch has helped 28 IP enterprises get loans of a total of 960 billion dong at lower interest rates.
In the first nine months of 2013, these enterprises attained export turnover of $3.4 billion, up by only 6.2 per cent compared with the same period last year.
A HEPZA representative said it would enhance its efforts to attract investment into IPs and EPZs, with a focus on attracting Japanese investment into hi-tech industries.