According to the Management Board of Ho Chi Minh City Export Processing and Industrial Zones, as of early December 2024, the total investment capital attracted, including new and adjusted investment capital, into the City’s export processing and industrial zones reached 491.70 million USD, reaching 89.40% of the annual plan, down 51.43% over the same period.
Accordingly, the land area for lease reached 25.35 hectares; the factory area for lease was more than 80,200 m2. The average investment rate was equivalent to 8.5 million USD/ha.
Currently, a number of projects with large investment capital in export processing zones and industrial zones are being implemented. When put into operation, it is expected to use an investment capital of about 23,700 billion VND.
ESTIMATED TO REACH 550 MILLION USD BY THE END OF 2024
The City’s Export Processing and Industrial Zones Management Board estimates that by the end of 2024, the total investment capital attracted will reach 550 million USD (100% of the annual plan) and by 2025, the total investment capital attracted will reach 550 million USD.
To continue to effectively exploit the land area and factories for lease, the City’s Export Processing and Industrial Zones Management Board also proposed to the Ho Chi Minh City People’s Committee solutions to form an additional 800 hectares of industrial land to attract investment in specialized industrial parks and high-tech industries.
This includes Hiep Phuoc Industrial Park Phase 2, Le Minh Xuan Industrial Park Expansion, Le Minh Xuan Industrial Park 2 and Pham Van Hai Industrial Park I and II.
Regarding the problems and difficulties related to the above industrial parks, the City’s Export Processing and Industrial Zones Management Board has also reported to the City People’s Committee and is coordinating with relevant departments to propose solutions to determine land prices, speed up site clearance and determine the organization of bidding to select investors. In addition, the City’s Export Processing and Industrial Zones Management Board has also coordinated with the Department of Planning and Architecture, the Department of Planning and Investment, the City Development Research Institute and the City Planning Project Management Board for the period 2021-2030, with a vision to 2050.
At the same time, the city’s industrial land fund has been added to 10 new industrial parks with an area of about 2,465 hectares in the City Planning for the period 2021-2030, with a vision to 2050 and the City’s General Planning to 2040, with a vision to 2060.
Regarding the Pilot Project for transferring Tan Thuan Export Processing Zone, Tan Binh Industrial Park, Cat Lai, Binh Chieu and Hiep Phuoc, the City’s Export Processing and Industrial Zones Management Board said that the Ho Chi Minh City People’s Committee has a policy to assign construction and infrastructure business companies to be the direct units in charge of implementation. these pilot projects.
HIGH-TECH PARK STILL HAS SLOW PROGRESSING PROJECTS
Regarding investment attraction activities in the high-tech park in Ho Chi Minh City, at the recent regular press conference on the socio-economic situation of Ho Chi Minh City, Ms. Tran Thi Ngoc Chung, Head of the Planning and Investment Department of the City’s High-Tech Park Management Board, said that the high-tech park is currently focusing on implementing 19 projects. Of which, 7 projects will start construction in 2024 and 12 projects are expected to start construction in the first and second quarters of 2025.
For the 7 projects expected to start construction in 2024, there are 3 foreign direct investment (FDI) projects with a total capital of 696 million USD and 4 domestic projects with a total capital of 181.56 million USD.
Currently, only 1 project has started construction, which is Nipro Vietnam Factory, and 1 project is preparing to start construction on December 12; 1 project has been granted a construction permit but has not yet started construction, which is Fulbright University, and 4 projects are completing their application for a construction permit and will be granted a permit this year.
In 2025, Ho Chi Minh City High-Tech Park is expected to start construction of 12 projects. Of which, 5 projects are implementing the master plan, 2 projects have had their master plan appraised; 2 projects have had their master plan appraised; 1 project has had its detailed construction planning locally adjusted at a scale of 1/500 approved; 4 projects are also adjusting their detailed construction planning at a scale of 1/500 and the Management Board is carrying out construction investment procedures in parallel with the procedures for adjusting the Investment Registration Certificate.
However, according to Ms. Chung, the projects are all behind schedule according to the Investment Registration Certificate as well as slow to put the land into use. In addition, the total capital attracted for new investment in the City’s high-tech park reached more than 28 million USD, not meeting the set target because the high-tech park enterprises also encountered difficulties in production and business activities such as decreased revenue, salary arrears, insurance arrears, and some cases of project termination.
To determine the cause, the City’s high-tech park management board has organized inspections of projects that have been handed over land but have not yet put the land into use (started construction) and projects that have not yet put into use (not yet started construction) the entire area of land that has been reassigned and leased.
At the same time, the management board will also conduct inspection records to consider extending the land use schedule according to regulations, including 17/19 projects mentioned above. To date, the inspection of the projects has been completed. However, according to the 2024 Land Law effective from August 1, some authorities on specialized inspection and decisions on extending land use progress do not belong to the Management Board.
Therefore, the Board is reviewing, advising, and proposing decentralization and authorization for the City High-Tech Park Management Board to decide on land lease in the high-tech park under the direction of the Ho Chi Minh City People’s Committee.