Dong Nai industrial parks boost investment

06:00 | 15/04/2020 Economy

(VEN) - According to the provincial economic development strategy, the southeastern province of Dong Nai has planned 35 industrial parks including 32 industrial parks on 10,240.45ha and a 78.51 percent occupancy rate. Dong Nai has developed industrial parks according to four criteria - location, infrastructure investment unit, opportunity to attract investment and demand for industrial park activities.

dong nai industrial parks boost investment

Dong Nai Province spurs the expansion of production and investment in high-tech industries

Increased investment attraction

In the first two months of 2020, Dong Nai’s industrial parks attracted 20 FDI projects with total capital of US$62.2 million and 20 projects increased capital by a total of US$133 million. In addition, investment registration certificate was granted for a domestic project with capital of VND300 billion. So, the province attracted a total of US$195.3 million through new and ongoing projects.

According to the authority of Dong Nai’s industrial parks, although FDI enterprises invest in many different fields, they focus on industries such as textiles, footwear, wood products, electronic components, animal feed and mechanical manufacturing. The provincial industrial parks currently contribute over 45 percent of total budget revenues and over 85 percent of local export turnover. In addition, foreign invested projects also contribute over 80 percent of above value.

In recent years, investment in the provincial industrial parks has exceeded US$1 billion per year. Businesses based in industrial parks operate in a wide range of fields, many of them high-tech and some manufacturing world-known brands. Dong Nai’s industrial parks also provide jobs for 565,000 employees, including about 6,500 foreign workers.

To attract additional investment in industrial parks, Dong Nai is planning four new industrial parks on an area of 1,320ha, namely the Long Thanh Hi-tech Park, Phuoc Binh Industrial Park in Long Thanh District, Cam My Industrial Park in Cam My District and Gia Kiem Industrial Park in Thong Nhat District.

Long Thanh is in the process of not only land acquisition and infrastructure construction but also attraction of secondary investment businesses. The Phuoc Binh Industrial Park has found investors, and the others are still choosing investors.

Favorable conditions

According to Cao Tien Sy, head of of the authority of Dong Nai’s industrial parks, the province will continue to attract investment and encourage businesses to expand production scale. Expanding production scale proves businesses trust the investment environment in Dong Nai. This, in turn, draws more quality investment projects in the long term.

The effects of the Covid-19 pandemic have resulted in declining production and exports due to a shortage of raw materials and difficult cross-border transportation of goods.

In order to alleviate some of the problems, the province is cutting unnecessary administrative procedures to help companies focus on production and trade.

The Dong Nai Province Branch of the State Bank of Vietnam has asked credit institutions to monitor the production and trade situation of enterprises, citizens and borrowers affected by Covid-19 in order to promptly restructure repayment terms and consider appropriate interest rate reduction.

Commercial banks in the province are gearing up for debt rescheduling and interest rate reductions for those affected by Covid-19. Specifically, Vietcombank’s Dong Nai Province Branch will provide loan support, debt rescheduling and moratoriums for business customers in the fields of transportation and warehousing, tourism, restaurants, hotels and import– export firms dealing with China in agriculture, fisheries, textiles and footwear. In addition, Vietcombank will reduce dong loan interest rate by up to 1.5 percent per year for customers affected by Covid-19. For USD loans, the interest rate will be reduced by 0.5-0.75 percent per year depending on the loan term.

Tax and customs agencies will not conduct periodic inspections in 2020 of enterprises that do not show signs of violation in order to help them concentrate on maintaining operations. The social insurance agencies are also coordinating with concerned agencies on suspension of social insurance payments for enterprises affected by Covid-19 until the end of June or the end of December 2020. Late payments will not be charged interest.

Ngoc Thao