Hanoi presents ambitious plan for modern industrial clusters

08:54 | 02/03/2020 Industry

(VEN) - The establishment and development of industrial clusters (ICs) in Hanoi have contributed significantly to the growth of the capital’s industrial and service sectors. Hanoi’s IC development master plan for 2020 with a vision to 2030 is expected to provide 159 ICs and to attain the city’s socioeconomic development targets.

hanoi presents ambitious plan for modern industrial clusters

Creating concentrated production sites

According to a report by the Hanoi People’s Committee, as of the end of 2019, Hanoi had 70 operational ICs in 17 districts and towns, covering a total area of 1,686ha.

These ICs have attracted 3,864 businesses that created 60,000 jobs, and contributed around VND1.1 trillion a year to the state budget. Among them, 26 ICs already have sufficient infrastructure, including the Quat Dong expansion, Ngoc Hoi, Tu Liem, and Phung Town.

The establishment of ICs in recent years has partly met the demand for production sites and facilities. The ICs helped move production facilities out of residential areas, reduce environmental pollution at handicraft villages and increase industrial production efficiency, contributing positively to the capital’s economic growth.

“Operating in suitable production sites is a real demand of enterprises, which helps them feel more secure as they have more favorable conditions in terms of logistics services,” said Vo Viet Dung, Director of the Anh Dung Investment, Trading and Production Co., Ltd.

However, according to assessments by Hanoi’s Department of Industry and Trade, many ICs have not invested in infrastructure and only allocated land to enterprises, which must then seek investments for their production and business activities.

Wastewater treatment in Hanoi’s ICs is also a persistent problem. So far, only 26 out of 70 ICs have wastewater treatment stations. Although the station at Tan Trieu IC (Thanh Tri District) has been under construction since 2007, it has not become operational yet. Meanwhile, the station in Duyen Thai IC (Thuong Tin District) had to stop operations in 2017 after five years due to financial difficulties. The ICs also paid little attention to fire fighting and prevention equipment and readiness, with only four having been inspected for their fire prevention systems.

Regarding limitations, inadequacies of infrastructure and management, Deputy Director of Hanoi’s Department of Industry and Trade Dam Tien Thang said that in the early days of IC development, some localities wanted to attract investors quickly and failed to pay sufficient attention to environmental protection. In addition, most ICs are formed by handicraft villages, which cannot afford expensive equipment for environmental treatment and fire prevention, and such issues are often ignored, Thang said.

Planning 159 modern ICs

To overcome these shortcomings, Hanoi’s Department of Industry and Trade mapped out a program on investment in technical infrastructure for the 2020-2023 period, with an estimated funding of more than VND4 billion that includes completing infrastructure for 56 ICs invested by district-level management boards (wastewater treatment systems, solid waste storage areas, and internal traffic systems). In addition, part of the funding will be allocated to newly established ICs in regions where attracting investment is hard, such as the Ba Vi and My Duc Districts.

Under Hanoi’s IC development master plan for 2020 with a vision to 2030, which was approved in 2018, the city is expected to have 159 ICs on a total area of 3,204 hectares. Once they go into operation, they will attract business and production facilities that need production sites for better development.

So far, Hanoi has established 19 new ICs; 14 are being submitted to the Hanoi City People’s Committee for approval while six others are being verified by the Hanoi Department of Industry and Trade to help them complete necessary procedures. The establishment of new ICs will create a new wave of investment in industrial and handicraft production, creating a breakthrough and contributing to the capital’s socioeconomic development.

The total investment capital for Hanoi’s IC development master plan for 2020 with a vision to 2030 is estimated at more than VND49.42 trillion, of which the figure for 2020 is VND34.9 trillion and that for the 2021-2030 period is about VND14.52 trillion.

Nguyen Hanh