This is the theme and goal of the Sustainable Industrial Park Development Conference in Vinh Phuc Province, organized by the Provincial People's Committee on the morning of September 20, under the chairmanship of Mr. Tran Duy Dong, Deputy Secretary of the Provincial Party Committee and Chairman of the Provincial People's Committee, and Mr. Ha Dinh Nha, Head of the Provincial Industrial Park Management Board. The conference was also attended by representatives from the Department of Economic Zone Management, Ministry of Planning and Investment; leaders of several departments, agencies, and sectors; leaders of corporations and companies involved in infrastructure development of industrial parks; and secondary investors.
Industry – The Engine of Economic Growth
According to statistics from the Provincial Industrial Park Management Board, as of the end of August 2024, the province had established 17 industrial parks, covering a total area of 3,146 hectares. Of these, 9 industrial parks are in operation, with 493 active projects, including 376 FDI (Foreign Direct Investment) projects with a total investment of USD 6.74 billion, and 117 DDI (Domestic Direct Investment) projects with a total investment of over VND 37.784 trillion. FDI projects come from 20 countries and territories, primarily focused on the production of electronic components, accounting for 50.4%, and the assembly of automobiles and motorcycles, accounting for 12.8%. The implementation rate of the projects ranges from 60 to 65%, with the industrial parks providing employment for over 142,400 workers.
Remarks by Chairman of the Provincial People's Committee, Tran Duy Dong
In his welcome speech, Chairman of the Provincial People's Committee Tran Duy Dong expressed his gratitude to the infrastructure investors and secondary investors for their significant contributions to the province's development. He emphasized that, with a vision for innovation, Vinh Phuc Province has consistently adhered to the policy of making industry the spearhead for breakthroughs and the driving force for economic growth, state budget revenue, and employment generation. The province has introduced various mechanisms and policies, promoted administrative reforms, and created favorable conditions for processing investment procedures, prioritizing clean land for the development of industrial park infrastructure and attracting investors.
Chairman Tran Duy Dong noted that, in implementing National Assembly Resolution No. 81 on the National Master Plan for the period 2021–2030 with a vision to 2050, and Prime Minister’s Decision No. 368 on the Red River Delta Regional Plan, as well as Decision No. 158 approving the Provincial Plan for Vinh Phuc for the period 2021–2030 with a vision to 2050, Vinh Phuc is identified as one of the provinces forming the industrial belt of Bac Giang – Thai Nguyen – Vinh Phuc – Phu Tho. This industrial belt is expected to become a driving force for growth across the region and a center for industrial development within the Hanoi metropolitan area. However, he acknowledged that the development of industrial parks in the province is facing several challenges, including legal issues related to the regulatory framework for industrial parks, difficulties in land compensation and site clearance, and a shortage of land for leveling for industrial projects. Additionally, the determination of land prices for industrial parks has been delayed, the quality of construction planning, and the capabilities and experience of some infrastructure investors remain limited. Furthermore, the province’s competitive advantages are showing signs of decline and are not fully aligned with its existing potential and strengths.
To promote the sustainable development of industrial parks in Vinh Phuc Province, Mr. Tran Duy Dong urged experts, investors, businesses, and leaders from departments and sectors to focus on discussions and contribute ideas to clarify the current state of industrial park development. He emphasized the need to propose solutions to resolve existing issues, remove obstacles hindering industrial growth, and address bottlenecks to foster the sustainable development of industrial parks. This would contribute to achieving the objectives set forth by the 17th Provincial Party Congress and progressively realizing the Provincial Planning for Vinh Phuc for the 2021–2030 period with a vision to 2050, as approved by the Prime Minister.
Investment in Industrial Park Development as a Mission
Expressing gratitude to Vinh Phuc authorities for their ongoing support and partnership with investors, Mr. Kenta Kawanabe, General Director of Thang Long Industrial Park (Vinh Phuc) Corporation., stated that the Thang Long Vinh Phuc Industrial Park is the third industrial park invested by Japan’s Sumitomo Corporation, covering a total area of 213 hectares. Currently, the industrial park hosts 41 secondary projects, 29 of which are operational, primarily from Japan, Taiwan, Hong Kong, and Vietnam. These projects employ high-tech solutions that have minimal environmental impact and are backed by well-known, experienced investors like TOTO, Daiwa, and Tsuchiya. With the increasing demand for factory space, the company is constructing three more factories, expected to be operational by February 2025.
To ensure sustainable development of the industrial parks, Mr. Kenta Kawanabe suggested that the province should focus on workforce training and support businesses in recruiting high-quality labor through job fairs or by acting as a liaison with universities, colleges, and vocational schools. Additionally, he recommended that the province continue implementing clear and favorable policies to assist investors with land acquisition, compensation, and site clearance.
Mr. Trinh Van Quang - Project Development Director of Ba Thien 2 Industrial Park
With over 10 years of presence in Vinh Phuc, Mr. Trinh Van Quang, Project Development Director of Ba Thien 2 Industrial Park, Vina-CPK Joint Stock Company, stated that Ba Thien 2 Industrial Park hosts nearly 80 investment projects, providing jobs for almost 30,000 workers. Vinh Phuc is a province with many favorable factors for industrial development, from geographic location, natural conditions, and transportation networks connecting to airports, seaports, and major economic centers in the North, to a high-quality labor force. However, investment attraction outcomes have not yet fully matched the potential and advantages of the province.
According to Mr. Trinh Van Quang, for Vinh Phuc to continue being an attractive destination for investors, the province needs to quickly implement and complete regional planning, subdivision planning, and industrial park development planning, as well as concretize the provincial plan approved by the Prime Minister. This would serve as a basis for investors to review and develop plans for researching and submitting investment proposals for new industrial parks. Additionally, there should be efficient resolutions regarding land valuation, land pricing framework, land allocation, and capital approval for resettlement projects that serve industrial park infrastructure, creating a favorable framework for accelerating compensation, clearance, and land liberation processes. The province should also continue to improve the quality of external infrastructure, especially concerning electricity, water, worker housing, and public transportation.
Praising the provincial support activities for investors, Mr. Han Jung Ho, Chairman of the Korean Business Association in Vinh Phuc, stated that not only him but all Korean people living, studying, working, and investing in Vinh Phuc in particular and across Vietnam in general, feel that Vietnam is like a second home. Currently, besides being South Korea's largest economic partner in ASEAN, Vietnam is also a key partner in South Korea's New Southern Policy, with many large Korean corporations and companies actively investing in the country.
At present, South Korea leads among the countries and territories investing in the province, with 231 projects and a total registered capital exceeding 3.025 billion USD. In the coming years, this land will continue to be a destination for Korean investors due to its many outstanding attributes that attract and retain them from the first visit. These include geographic location, transportation systems, internal and external industrial park facilities, improvements in the business environment, and timely resolution of difficulties and support for enterprises. "In the current context, Korean investors hope that Vinh Phuc province will continue to focus on supporting the high-quality workforce and developing housing projects for workers, as the Vietnamese saying goes, 'An cư, lạc nghiệp' (settle down, thrive in work)," said Mr. Han Jung Ho.
In discussions at the conference, many investors and businesses also suggested that the province continue to address difficulties related to land, compensation, and site clearance; research and create long-term, stable policies to support industrial park development; promote administrative reforms; and apply digital technology in resolving procedures related to land, investment, construction, and approvals for construction and fire safety inspections.
At the conference, Mr. Tran Duy Dong, Chairman of the People's Committee of Vinh Phuc province, directed relevant departments and agencies to clarify and address investors' concerns regarding land issues, especially in determining land prices, land for foundation construction, and compensation for site clearance. The Chairman assigned specific tasks to the Provincial Industrial Parks Management Board and relevant departments to promptly resolve challenges, urgently develop industrial park plans as per the regulations in the Government's Decree No. 35; urged industrial park infrastructure investors and businesses within the parks to strictly comply with Vietnamese laws; and to focus resources on deploying infrastructure projects ensuring high-quality, modern, and environmentally friendly standards. Furthermore, collaboration with local governments and relevant agencies in site clearance and compensation should continue, with attention given to maintaining green spaces and technical infrastructure, ensuring reasonable rental prices for industrial park land and factory leases. Aiming to develop Vinh Phuc's industrial parks sustainably and towards green growth, the Chairman affirmed, "Investors in Vinh Phuc are citizens of Vinh Phuc. When businesses prosper, Vinh Phuc thrives. The province is committed to creating all favorable conditions for investors to operate efficiently."
Thanh Nga
