Bac Ninh IPs Success Story of Investment Attraction
Endowed with a lot of favorable conditions to attract investment, Bac Ninh has become increasingly attractive as more large-scale enterprises and investors come to set up business investment projects. This success is partly contributed by the Bac Ninh Industrial Zones Authority. Vietnam Business Forum’s reporter has an interview with Mr. Nguyen Van Phuc, Director of the Bac Ninh Industrial Zones Authority, on this topic. Ngo San reports.
Could you please tell us about development status and investment results in local industrial zones up to now?
By the end of 2021, Bac Ninh province had 16 large-scale industrial parks covering 6,397.68ha, approved by the Prime Minister. Ten industrial parks are operational, with nine having centralized wastewater treatment systems that meet environmental standards. The province established 15 industrial parks whose average occupancy is approximately 53.57%
Regarding investment management, in 2021, industrial parks received 125 new tenants (including 84 FDI projects and 41 domestic projects) with a total registered investment value of US$1,813,532 million (including US$1,433.462 million from FDI projects and VND9,155.62 billion (US$398.07 million) from domestic projects). Many big investors came from Singapore and South Korea.
In addition, the business performance of tenants in industrial parks usually outdid their plans and made important contributions to the overall provincial development. Their production value reached VND1,259.21 trillion (US$54.7 billion) and the export value was estimated at US$38.5 billion. They paid VND12.53 trillion (over US$500 million) to the State Budget, accounting for 40.27% of the province's budget revenue. Industrial parks are now employing 337,272 workers whose average monthly personal income is VND8.75 million. In 2022, workers in industrial parks are expected to increase by 15,000 - 20,000.
What solutions did you adopt to remove difficulties and support tenants?
Faced with complicated COVID-19 pandemic development, we have upheld pandemic prevention and control. We have coordinated with the Department of Health, the Provincial Public Security and relevant sectors to devise an action plan for 40 working groups to guide and support the Steering Committee for Pandemic Prevention and Control at enterprises. In addition, we cooperated with the Department of Health to organize three online training sessions for nearly 1,000 participants. We also instructed worker flow, quarantine and testing to ensure “safe and flexible adaptation to, effective control of COVID-19 pandemic development”; and developed plans to review and roll out vaccinations for workers.
Together with active solutions to reform administrative procedures and promote investment in various and effective forms, in 2021, we received and handled 9,648 administrative records on the single-window location. Among them, 6,074 records were settled online, accounting for 63%, of which 72.5% were completed in time or before time and 865 records were requested for paper supplementation. We also worked with over 100 domestic and foreign investors who studied investment opportunities in Bac Ninh industrial zones and inked many cooperation agreements and programs, which added new impetus for development.
Infrastructure is important to increase investment. So, how have you improved the infrastructure system in industrial zones?
Industrial zone construction and development planning is defined as a breakthrough stage to accelerate economic restructuring towards the modern industry. To create space for new investment projects, the province directed relevant bodies to request infrastructure investors of Yen Phong II-B, Thuan Thanh I, Gia Binh I, Gia Binh II and Que Vo II - Phase 2 industrial parks to quicken land clearance compensation to start infrastructure construction. Infrastructure investors of Dai Dong - Hoan Son (Phase 2), expanded Yen Phong, Que Vo III (Phase 1), Que Vo II (Phase 1), Hanaka, Thuan Thanh II, Thuan Thanh III - B and Nam Son - Hap Linh are speeding up infrastructure construction and completion in industrial zones as per approved planning.
In addition, we are drawing investment capital to build and complete technical infrastructure outside industrial parks to create favorable conditions and new looks that are attractive to investors. By doing so, we will help increase the occupancy rate of industrial parks and improve the investment attraction of Bac Ninh in the coming time.
Needless to say, with the ongoing effort of the Bac Ninh Industrial Zones Authority and infrastructure investors, Bac Ninh province has become a "golden address" for investors.
Could you please tell us about the goals of investment attraction and industrial zone development in Bac Ninh province in the coming time?
In 2022, we aim to attract 105 projects with a total newly registered capital of about US$1.15 billion into local industrial parks, including 85 FDI projects with US$1 billion and 20 domestic projects with US$150 million. Industrial production value will climb to VND1,300 trillion (US$;56.5 billion); export value to US$37 billion USD; import value to US$25.5 billion and tax payment value to VND12.5 trillion (US$540 million).
To accomplish these goals, we will concentrate on implementing the following key tasks and solutions:
To improve investment attraction, Bac Ninh province will consistently apply the following investment criteria: less labor-intensive, less land-intensive, high investment value, high economic efficiency, high technology, available space, available human resources, ready support and ready pandemic prevention, and zero pollution.
First, actively reforming administrative procedures; speeding up digitization and digital transformation in line with building and operating an information system for management of industrial zones in the province.
Second, quickening construction of key projects, site clearance, directing the start of newly established industrial parks, creating a clean ground for investors.
Third, being active, creative and flexible in supporting and promoting investment, taking the initiative from opening the door to knocking on the right door, and carrying out focused investment targeting large projects with strong ripple effects.
Fourth, strengthening review and supervision to promptly resolve difficulties and problems against investors.
Fifth, supporting labor supply; training workers to improve their qualifications and skills.
Sixth, strengthening environmental protection.
Seventh, launching emulation and commendation movements for businesses.
