Bac Giang grapples with IC development difficulties

15:14 | 14/06/2016 Industry

(VEN) - Bac Giang Province has found it hard to attract investment in local industrial cluster (IC) development due to administrative shortcomings and a lack of incentives.

Bac Giang grapples with IC development difficulties

As of March 2016, Bac Giang had 27 ICs covering 581.83ha, with 240.9ha of the total area rented. The majority of ICs are located in Bac Giang City, Viet Yen, Yen Dung and Lang Giang districts, benefiting from better road links.

Of the 27 ICs, 18 have prepared detailed construction plans, 12 have their infrastructure investment projects approved and 13 have been filled by companies. All these ICs have attracted more than 190 projects with total investment of VND5.53 trillion, including 175 projects underway, worth of VND3.7 trillion and employing nearly 36,000 workers who receive VND3-5 million in monthly incomes.

Most ICs were set up before the industrial cluster management regulations issued in accordance with Prime Ministerial Decision 105/2009/QD-TTg, which makes IC development and management more challenging. In addition, IC investors are facing difficulties in terms of administrative procedures, according to the Bac Giang Department of Industry and Trade.

District people’s committees invested in infrastructure construction in 25 ICs while two enterprises invested in the remainder. Specifically, the E Park’s Co. Ltd., invested VND1.29 trillion in the Hop Thinh IC in Hop Hoa District and the Nam A Co. Ltd., invested VND287.11billion in the Hoang Mai IC in Viet Yen District.

Some ICs located in mountainous areas appeared less attractive to investors due to traffic and recruitment problems. Recognizing this problem, the province provided each with VND2-8 billion, but this was said too small to accomplish even one planned task.

The Bac Giang Department of Industry and Trade suggested there should be incentives for investors in local ICs, especially infrastructure investors, along with streamlined administrative procedures, to encourage public and private enterprises to work together in IC development.

The Bac Giang People’s Committee Chairman approved the adjusted industrial cluster construction plan until 2020, including the expansion of two and establishment of nine covering 216.8ha. The province expects to have 36 industrial clusters covering 682.99ha by 2020.


Hai Linh