Dak Nong Industrial Zones Actively Dealing with Difficulties

Source: Pano feed

Despite being a core accelerator of the industrialisation, the investment for the construction of industrial zones in Dak Nong province is incomplete, thus worrying many investors when they consider registering investment and carrying out their business operations in the province. As a result, the occupancy rate at industrial zones is quite low.


Dak Nong province now has Tam Thang Industrial Park (Cu Jut district), Nhan Co Industrial Park (Dak R’Lap) and five small-scaled industrial complexes. The 179.5-ha Tam Thang Industrial Park, the first of its kind in Dak Nong, cost VND191.3 billion (mounting to VND307 billion in December 2014 due to inflation). The zone, invested by Tam Thang Industrial Park Development Company, completed some basic items. In the end of 2014, the investor had spent VND224 billion, 72.9 percent of the total value of VND307 billion. As of October 2014, Tam Thang Industrial Park drew 30 projects from 27 enterprises, of which 27 projects, including one FDI project, were operational and three projects were under construction. The total initial registered investment capital was VND2,232.98 billion, of which VND1,163.8 billion was disbursed.


The gross revenue of tenants was estimated at nearly VND2,700 billion in 2014, of which VND1,500 billion came from exports. Due to insufficient capital for infrastructure construction, the industrial zone finds it hard to lure new investors.


The 106.8-ha Nhan Co Industrial Park is under construction and five industrial complexes, covering 196.81 ha, are yet to have infrastructure built. Specifically, Thuan An Industrial Complex, covering 52.2 ha in Dak Mil district, is invested by Thuan An Industrial Complex Development Centre. The investor has levelled off and cleared 28 ha of ground and spent VND28 billion out of VND86 billion, or 32.5 percent of the total. Presently, 28 investors have registered to hire ​​nearly 22.4 ha, of which three projects have gone into operation and four projects are under construction.


The 35-ha Quang Tam Industrial Complex in Tuy Duc district, invested by Dai Gia Nhan Export Import Joint Stock Company, is being suspended after 20 percent of construction work was completed. Similar situations have also occurred to Dak Song Industrial Complex, Krong No Industrial Complex, and BMC Industrial Complex in Dak Ha commune, Dak Glong district.


Industrial zones are defined to generate strong impetuses to industrial and handicraft development but investment attraction into industrial zones is unsatisfactory. Many tenants are still confused about land rent reduction procedures.


The infrastructure construction for industrial zones in the province is slow-moving. Some industrial complexes failed to draw tenants like Dak Song Industrial Complex while some had to relocate to a new location due to troubles in site clearance like Krong No Industrial Complex.


To deal with this reality, the Dak Nong Industrial Zone Management Board will coordinate with related bodies to mobilise all available investment resources for infrastructure construction in industrial zones. The authority will actively support investors to deal with emerging issues to keep up with the progress of their production and business activities. Besides, Dak Nong will endeavour to create a ready land fund for investors and introduce investment incentives for tenants in zones. Accordingly, when investing in industrial zones, they will be supported 15 percent of funds for essential infrastructure construction like electricity, water supply and communications, and 50 percent of funds for building roads from major traffic routes to the fence of industrial zones but the maximum value is limited at VND3 billion. The province also directs utility service providers like electricity, telecom and water to meet the demand of investors.


Khanh Linh




Đăng ký: VietNam News