Seeking the best model for IC investment

11:25 | 05/10/2015 Industry

(VEN) - A series of management and investment models for industrial clusters (ICs) are being implemented. Of this, the model with private firms as investors implementing infrastructure construction is considered the best solution. However, it has faced many obstacles to prove efficiency.

Seeking the best model for IC investment

According to the Ministry of Industry and Trade’s Agency for Regional Industry Development, models with investors implementing technical infrastructure construction in ICs in many localities throughout the country remained separated due to the presence of many subjects such as private firms, IC development centers, technical infrastructure development companies and district people’s committees.

Each model has their advantages and disadvantages. Regarding the model with district IC development centers as investors, it has been favorable in terms of direction and administration but has faced limited workforce and financial resources.

The model with technical infrastructure development companies as investors is consistent with large-scale ICs operating in the high-tech field and support industries and not suitable for small-scale ICs with handicraft production activities.

The model with private firms as investors has advantages since it does not require state investment in technical infrastructure, while ensuring the pace of construction and good services such as security, sanitation, and waste and wastewater treatment. In addition, private investors usually fix damages in a timely manner, creating favorable conditions for trade and production.

Thanks to numerous advantages, the model with private investors is considered the best solution. However, it is difficult to deploy this model because of the small number of firms that are willing to invest in IC infrastructure.

Nguyen Van Minh from the Hai Duong Department of Industry and Trade’s Industrial Management Division said that each IC requires investment capital of more than VND100 billion, while firms do not have the right for entire management due to the control of ministries and departments such as the Ministry of Industry and Trade, the Ministry of Planning and Investment and the Ministry of Natural Resources and Environment. In addition, support mechanisms and policies for firms investing in IC infrastructure remain unattractive.

Diversifying investment in IC infrastructure should be the right policy for the development. The Agency for Regional Industry Development has made high efforts to build a legal framework and create favorable conditions to attract investment capital in ICs. However, it has not proved efficiency. Therefore, specific mechanisms and policies to attract investment capital in IC development are needed.

Deputy Prime Minister Hoang Trung Hai signed a document to put the governmental decree on IC management and development into the program on devising legal documents in 2016. The Ministry of Industry and Trade will chair and coordinate with departments and agencies for implementation and propose mechanisms and policies to attract investment capital in ICs for approval in the second quarter of 2016.

 

Hai Linh

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