Though industry – smallindustries and handicrafts are facing difficulties, input material priceincreases and investment is limited… enterprises and manufacture units in PhuCat have overcome difficulties and maintained good growth rate.
Cat Hiep Industrial cluster is inviting investors of infrastructureIn 2015, Phu Cat districtpeople’s committee (DPC) actively collaborated with the provincial departmentsand enterprises in solving land clearance issues, promoted projects andinvestment in the industrial clusters (ICs). The following are significantpoints of the situation:
Regarding industrial clusters
Five ICs are in the planningof the Provincial People Committee (PPC), three of them have available infrastructure and are attracting business andtrade. These ICs include:
Go Mit IC: Total planningarea of 13.4 ha, of which Phu Cat DPC is the investor. So far it hasattracted 22 enterprises and manufacture units; the occupancy rate is 100%. In2015, the total revenue of the manufacture units and enterprises in Go Mit IC reachedVND 200.56 billion, providing jobs for 394 employees.
Cat Nhon IC: Totalplanned area is 59 ha, of which Pisico Infrastructure Trading Enterprise is theinvestor. So far, seven enterprises have registered to invest, five of them areoperating; one is under construction and one has signed the land lease contract.The occupation rate is 63.44%. In 2015 the total turnover of the enterprisesin Cat Nhon IC achieved VND 314.7 billion, creating jobs for 869 people.
Cat Trinh IC: Total planning area of 16.7 hectares, of which Nha Be Garment Corporation is the investor. So far, four enterprises have registered to invest, three are operating and one is under construction. The occupation rate is 67.7%. The company under construction is Delta Galil Ltd. Vietnam running the textile- dying- garment project; the company is preparing import machinery and equipment for installationand expecting to go into operation by early quarter III this year. In 2015, the total turnover of the enterprises in CatTrinh IC achieved VND 1.3 billion, creating jobs for 1.182 employees.
Cat Hiep IC: Total planning area is 50 ha, the detailed planning has been approved and thereis a need for investment in infrastructure.
Cat Khanh seafood processing IC: Total planned area is 60 ha, of which the DPC is theinvestor. Land clearance forstage one hascompleted. Preparation is made for construction of the main road and drainage system.
In addition to the ICs, there are 7 other smaller ICs which are alsocalled industrial sites are operating. In 2015, total turnover of the enterprises in these industrial sites reached VND 386.8 billion, and about 984 jobs were created.
In addition to theachievements, industrial and handicraft production in the district still facethe following difficulties:
- Infrastructure construction did not follow the approved detailed planning, there exist ICs where waste water treatment plants are not constructed and the electrical system is not sufficient.
- Mobilization of enterprises to invest in infrastructure andattraction of enterprises to establish production and trading in ICs aredifficult. Theoccupancy rate in ICs is still low.
- Most enterprises use land effectively and in linewith the committed progress; however, some enterprises still do not use all the land leased or do not operate effectively and causewaste.
- Investment into Cat Nhon IC does not progress well. Some road sections and bridges on the Highway 19B passing this IC have low weight bearingcapacity; the road surface is narrow road and this has made it inconvenient for transporting material andgoods. On the other hand, land and infrastructure lease price andinfrastructure maintenance cost are still high. Therefore, it has been aconstraint for investors, especially small investors, and also for attractinginvestment into Cat Nhon IC.
- Prices of input material for production increases; borrowing rate hasdecreased butremains high compared to theprofitability. Access to loans remainsdifficult; purchasing power has decreased.- Inthe upcoming time, the DPC needs to increase supportive policies, organiseseminars promoting investment into ICs. Also, there need to be projects upgrading transportation routes connecting ICs with common transportsystem and it aims to meet the needs of cargo transportation and lower costs for investors. Activities need to be carried out to enhance management of ICs such asworkshops, seminars and study tours to other ICs in the region, also supervisionhow regulations and policies related to IC development and operation arefollowed.
Phu Cat DPC has asked the PPC to fund for infrastructure construction of seafood processing Cat Khanh IC in order to attract investors seafoodprocessing for export, also to increase the support level for industry promotion in the province in general andin the district in particular.
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