An outlook of supporting industrial zones development in Ho Chi Minh

There used to be a plan to develop zones of supporting industries in Ho Chi Minh. However, there are many policies and opportunities, but the construction of supporting industrial zones in Ho Chi Minh seems not successful.

Ho Chi Minh City is planning that by 2025, supporting industry products must satisfy 65% of domestic demand. However, many enterprises in industry think that this is a rather high goal because they can only supply small-scale orders. Lack of clusters and supporting industrial parks to link businesses becomes big barrier.

Supporting industrial zones create advantages for businesses in the supply chain
 

For decades, mechanical enterprises still produce among residential areas, and it is not possible to expand production. According to business, this is one of the biggest obstacles to accessing the city's support package.

Because the production facility is built in residential area, it does not follow any standards, leading to lack of safety in production.

Industrial parks with synchronous infrastructure have the advantage of attracting large FDI and are convenient to connect networks. In addition, the supporting industrial park will solve the problem regarding in-depth investment and high-intense production.

"In industrial park, the interaction will be faster and stronger. At this time, the investment problem of enterprises will have solution, people do not need to invest too much in machinery and equipment for the enterprises. At that time, specialization will be easier to achieve and they may satisfy standards." said Mr. Do Phuoc Tong, Chairman of the Ho Chi Minh Association of Mechanical and Electrical Enterprises (HAMEE).

Developing supporting industrial zones is considered one of the five solutions to promote the development of Ho Chi Minh industries. When enterprises form production cluster, logistics costs and production costs will be cut down, which is considered a good base to join FDI's supply chains.

In fact, many years ago, Ho Chi Minh City has planned 3 zones to receive supporting industry enterprises including Hiep Phuoc Industrial Park Phase 2 with 200 ha, Le Minh Xuan 3 Industrial Park is 100 ha and 60 ha Automotive Mechanical Park.

Also read: List of industrial zones in Ho Chi Minh
 

Enterprises need, authority set up plans. However, unfortunately the effect is not as expected.
 

Many years ago, the construction of Hiep Phuoc Industrial Park (phase 2) with total area of ​​200 ha took into account the formation of a supporting industrial zone. In particular, a plan for supporting industrial park has an area of ​​80ha, aiming to prioritize attracting key industries of Ho Chi Minh City such as: mechanics, electricity - electronics, plastics - rubber - plastics... However, the result is not as expected.

The legal problem was the first reason for the problem by the Management Board of the Industrial and Export Processing Zones of Ho Chi Minh City (HEPZA). Therefore, the land rental price of the State and companies of developing infrastructure has not been determined.

In addition, supporting industry enterprises are the small and medium-sized, so initially when planning in Hiep Phuoc Industrial Park, plots of land from 750 - 1,500m2 were formed. This is becoming an obstacle to attracting business.

The plan for the supporting industrial park must also take into account the "measurement of shoes" with each strategic investor to really promote its effectiveness.

"The supporting industry must be the support of what industry, around which strategic investors, but not in general. This requires drastic attention in the industrial development planning of each locality. localities, especially Ho Chi Minh City", Mr. Nguyen Anh Thi, Head of the Management Board of the High-Tech Park of Ho Chi Minh City. Ho Chi Minh, said.

From the entanglement in industrial zones, HEPZA said that in the remaining period, it will not plan small plots; at the same time, build a fund of standard factories or high-rise factories on large plots of land, then divide into small plots for easy access to businesses to avoid repeating old problems.

Enterprises in the supporting industry are receiving strong support from the State, plus the advantage of shifting supply chains for businesses to transform. However, more suitable solutions are needed for the problem of developing supporting industrial zones and clusters in Ho Chi Minh City, because developing supporting industries is one of the most important solutions for Vietnam to improve quality. economic growth, sustainable development and avoiding the middle-income trap, helping to increase the ability to attract foreign direct investment.

Source: VTV News