Binh Dinh Invest

Accelerating investment in industrial clusters

23/08/2017

Over the last few years, Binh Dinh has implemented various solutions in order to draw more investment in the province. However, the state management of these industrial clusters needs improving to make them available and accessable for investors.

Cat Nhon industrial cluster, Phu Cat district

According to the development planning, by 2025 there will be 63 industrial clusters in Binh Dinh with total area of 1,981.1 ha. Currently, 42/63 industrial clusters with total are of 1,369.6 ha are operating; in which 12/42 clusters covering 327.2 ha have adequate infrastructure (roads, electricity, water supply…), 12 cluster on 295.2 ha are fully occupied, 07/42 clusters have concentrated waste water treatment system.

Total capital needed for constructing infrastructure of 42 operating clusters is approximately VND 2,274 billion, so far VND 598.8 billion (about 26.3%) has been used. There are 8 enterprises which construct and trade infrastructure of 10 industrial clusters; 32 other clusters operate under direct management of District People’s Committees.

Total area the enterprises have rented is 480.7 ha; therefore, the occupancy rate of the industrial clusters is approximately 54.5%. 772 enterprises with total capital of VND 6,735 billion have registered to operate in these clusters, employing 20,000 peoples with salary of VND 3-3.5 million/person/month.

However, investment in industrial clusters does not follow strict rules. Construction of infrastructure is implemented at the same time with leasing land, the progress depends on the need of investors who are leasing land and on the state budget of the locality. Infrastructure inside the industrial clusters is inadequate; environment treatment is not sufficient. On the other hand, the cost of maintenance service of industrial parks and industrial clusters is high (industrial parks about 0.175 USD/m2/year, industrial clusters 0.12 USD/m2/year); as a result, investors tend to search for sites outside industrial parks and industrial clusters.

A few industrial clusters do not comply with social-economic development orientation or urban development planning any more and need to be adjusted, some of them are located in residence areas such as Quang Trung, Nhơn Binh (in Quy Nhon city); Go Da Trang, Thanh Liêm, Phuong Binh Dinh (An Nhon town).

Administrative procedures relating to investment such as Approval Decision for Investment, construction permit for projects implemented in industrial clusters are not different from other projects outside industrial clusters. Land clearance is slow in some places and this has significantly affected project construction progress.

Due to limited fund and insufficient investment in the industrial clusters, several industrial clusters established a few years ago are unable to lure investors.

Obviously, Binh Dinh needs timely and long-term solutions to improve infrastructure in industrial clusters and attract investors, which is crucial for boosting the local economy.

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