HCM City authorities have proposed the construction of a “highly competitive” Pham Van Hai Industrial Park (IP) covering 668 hectares in Binh Chanh District as part of a master IP plan until 2025.

Under the proposal, the 668ha area (which was previously planned for 330ha only) would form a centralised IP and replace three other planned IPs, including the 200ha Bau Dung and 175ha Phuoc Hiep in Cu Chi District and the 300ha Xuan Thoi Thuong in Hoc Mon District.

The three IPs were approved in 2008 but have not been implemented due to a lack of investors, and the plan for land acquisition and compensation has not been mapped out.

In 2018 the city received approval to convert 668 hectares in Pham Van Hai Commune into industrial land. However, the land allocated for construction of Pham Van Hai IP remains agricultural land, which is now managed and used by the HCM City Plants Company.

The area covered with alum soil is only useful for short-term crops with high alum tolerance like sugarcane, cassava, bananas and production forests, as well as industrial crops such as rubber, tea plants, and hybrid acacia and cajuput trees.

Because of the low land-use efficiency and economic value, continued cultivation would not be commensurate with the land value of the area.

Pham Van Hai IP will focus on science and technology, start-ups, and the supporting industry, according to the city’s People’s Committee.

The Pham Van Hai IP is expected to attract more investors, especially those in the hi-tech, electronics and mechanics fields and supporting industry, and become a highly competitive and qualified industrial park.

The new IP will have convenient traffic connections and infrastructure and will be accessible to main roads such as Highway 1A, HCM City – Trung Luong Highway and the Ring Road 3, which crosses the industrial park and connects with the Mekong Delta province of Long An.

According to Vo Van Hoan, vice chairman of the People’s Committee, total industrial land of 7,000 ha have been allocated for HCM City.

Four out of 23 IPs have not been implemented under the master IP plan, including the three that will be replaced.

Long-delayed IP projects have seriously affected residents of Cu Chi and Hoc Mon districts.

According to Hoc Mon District authorities, more than 2,000 households living within these projects’ borders have been affected.

In meetings with voters, residents of Cu Chi and Hoc Mon districts have constantly asked the city authorities to remove the planning of these delayed IPs.

According to the master plan for IP development by 2025, the city is shifting its economic structure towards services, industry and urban construction, focusing on high-tech industries and services.

It will make existing zones green and clean and build new hi-tech zones for supply industries, with priority given to current investors and industry 4.0 technologies.

An urbanisation rate of 80-90 per cent is expected by 2030. Accordingly, the city will restrict the use of land for agricultural cultivation.

HCM City has 17 EPZs and IPs with a combined area of more than 2,570ha. — VNS