IPs, EZs to attract $10b in FDI

Wednesday, Jul 02, 2014 09:34

A view of the Phu My 1 Industrial Zone in Ba Ria - Vung Tau Province. The country is expected to attract foreign direct investments (FDI) worth US$8 billion into industrial zones this year. — VNA/VNS Photo Hoang Hai

HA NOI (Biz Hub) — The country is expected to attract foreign direct investments (FDI) worth US$8 billion into industrial zones (IPs) and $2 billion into economic zones (EZs) this year.

The Ministry of Planning and Investment (MPI) has released a report on the operations of IPs and EZs in 2013 and the development plan for 2014, showing that Viet Nam has 289 IPs and EZs with total area of 81,000 hectares.

Of these, 191 IPs have come into operation with a total area of 54,000 hectares and other 98 IZs have been carrying out land clearance and basic construction with total area of 27,008 hectares.

The ministry said the additional area of IPs this year would be between 2,000 and 2,500 hectares, bringing the total to 84,000 hectares.

The number of 15 seaside EZs, with a total area of 697,800 hectares, would be unchanged.

Tran Duy Dong, Deputy Director of the ministry's Economic Zone Management Department, said the Government placed high value on the contribution of IPs and EZs to Viet Nam's investment capital and socio-economic development.

Dong said that they had helped restructure and modernise the economy.

At present, IP and EZ-based enterprises have employed two million workers and produced 40 per cent of the total industrial production value and 30 per cent of the total export turnover respectively.

IPs and EZs were attractive destinations for investors, especially those from abroad. Over 50 per cent of total FDI capital in the country has come from IPs and EZs. Last year, 90 per cent of total FDI capital was channelled via FDI projects in IPs and EZs, he added.

In the central coastal region, Thua Thien-Hue and Binh Thuan provinces were not able to attract as much investment as the two leading economic areas of the Southeast region and the Song Hong (Red River) Delta.

By the end of 2013, the central coastal region's IPs attracted 189 FDI projects with registered capital of $2.7 billion and 830 domestic projects with registered capital of VND49.6 trillion ($2.3 billion).

Meanwhile, EZs attracted 69 FDI projects with total investment capital of $8.2 billion, and 225 domestic projects with investment capital of VND125.2 trillion ($5.9 billion).

He said, although the total investment capital from the central coast's IPs and EZs was modest, it had made remarkable contributions to socio-economic development in the region.

Total turnover of IPs this year was forecast at $72 billion, increasing $2 billion over last year. Its export value would reach $42 billion while import value would be $41 billion, contributing VND40 trillion to the State budget.

The turnover of EZs this year, would be $10 billion and they would be contributing VND23 trillion ($1.09 billion) to the State budget.

The ministry said the Government had clarified that it would develop IPs and EZs on a suitable scale in each locality.

The Government would not allow establishment of EZs while limiting IPs by 2020, but instead focus their resources on improving effectiveness of the existing IPs and EZs.

It would accelerate progress of projects and infrastructure in EZs to create pre-conditions for establishment of key IPs. — VNS

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