Many industrial zones around the country facing difficulties according to MPI report.
A large number of industrial zones in Vinh Phuc, Hai Duong, Hung Yen, Ba Ria Vung Tau, Khanh Hoa, and Ninh Thuan provinces have problems, according to a report from the Ministry of Planning and Investment (MPI) on the performance of industrial zones in Vietnam during 2014.
Fourteen have low occupancy rates, have not paid site clearance compensation, and have not completed site clearance and the building of infrastructure. Of these, five changed investor or land use purpose or cut down their size from the original land allocated: Quang Minh 2 in Hanoi, Cong Hoa - Chi Linh and Cam Dien - Luong Dien in Hai Duong, Kim Dong in Hung Yen, and Phong Phu in Ho Chi Minh City.
Besides closing down certain industrial zones, MPI has also proposed that others have their licenses revoked. Hung Yen has the most industrial zones on the black list, with Minh Quang, Vinh Khuc, Ngoc Long and Megastar not yet changing the land use purpose from agriculture to industrial.
After conducting inspections, MPI has suggested the removal of these industrial zones from the industrial zone development plan to 2020.
In Long An province are industrial zones such as Duc Hoa 3 - Lien Thanh and Dong Nam A that are facing difficulties in site clearance and linking to external traffic networks. MPI there requested the provincial people's committee improve and expand roads and support the investors with site clearance.
The ministry remarked that when industrial zones are unable to pay site clearance compensation or conduct site clearance, the area of the industrial zone will be smaller than intended. Meanwhile, revocation of investment licenses will be considered if investors are struggling with financial problems, with projects transferred to capable investors.
Ba Ria Vung Tau province is facing difficulties with its Long Son Industrial Zone, which was originally planned to be 1,250 hectares. Despite the area then being reduced to 850 hectares, the project has still not gone ahead. MPI therefore asked provincial authorities to urge the investor to complete site clearance and pay compensation. If the investor is experiencing financial difficulties, the size of the project can be reduced further or its business certificate may be revoked.
Hai Duong province was also asked by MPI to guide is provincial steering committee to accelerate procedures to certify the investment of the Phuc Hung Limited Company and change the investor of the Cam Dien - Luong Dien Industrial Zone.
Revoked industrial zones include Nam Cam Ranh in Khanh Hoa province, on 204 hectares, and Du Long in Ninh Thuan province, on 407 hectares.
For industrial zones whose licenses have been withdrawn in Vinh Phuc, Quang Binh, Binh Phuoc, Tien Giang, and Ca Mau provinces, MPI has asked local authorities to find other investors.
According to the MPI report, as at the end of 2014 there were 295 newly-established industrial zones in Vietnam on a total area of 84,000 hectares. Only some 2,000 additional hectares, however, had been leased compared with 2013.
- industrial zone