Prime Minister Pham Minh Chinh meets with workers in Bac Giang province, June 2022

Effective investment attraction

Bac Giang province is currently home to nine industrial parks approved by the Prime Minister, with a total planned area of 1,967 ha. Four IPs are fully occupied by tenants, including Dinh Tram, Quang Chau, Van Trung and Song Khe - Noi Hoang, while two others are highly occupied by tenants, with Hoa Phu leasing 95% of its rentable area and Han Viet reporting the occupancy ratio of 74%.

Three newly established IPs are carrying out land compensation for site clearance and infrastructure construction, including Tan Hung, Yen Lu and expanded Hoa Phu Phase 1 (85 ha).

In addition, Yen Son - Bac Lung (300 ha), Phuc Son (124.94 ha) and expanded Viet Han (148 ha) are being appraised by the Ministry of Planning and Investment and submitted to the Prime Minister for construction approval.

In 2022, industrial parks of Bac Giang province have attracted 35 new investment projects, including 27 FDI projects, and witnessed 34 existing projects to increase the registered capital, totaling US$1,241 million, equal to 124% of the assigned target. As of November 25, 2022, Bac Giang province ranked 9th in the country by FDI value.

Bac Giang province-based industrial zones are presently housing 442 investment projects, including 329 FDI projects and 113 DDI projects, with a combined registered investment fund of US$7.373 billion and VND16,890 billion. Among them, 401 projects are in operation, estimated to generate output value of VND293,373 billion in 2022, an increase of VND39,006 billion over 2021. They have paid VND4,056 billion of tax in the year, an increase of VND780 billion over 2021, equal to 101.4% of the yearly plan. They are employing more than 188,000 workers, of which 69% are locals. The average income of a worker is VND8 million a month.

Mr. Dao Xuan Cuong, Head of the Bac Giang Industrial Zones Authority, said: With the current speed of investment attraction in industrial zones, infrastructure construction investment in industrial parks is one of the most important and urgent tasks that needs to be done immediately. At present, the authority is actively coordinating and supporting infrastructure investors and urging local authorities to carry out land compensation and site clearance for infrastructure development investment projects in approved industrial zones. 

Building a strong investment environment

With strong determination of businesses, some large projects will soon come into operation, including Fukang, Cheng Long and Hana Micron Vina. High growth is forecast for semiconductor, electrical and electronic equipment which serve the manufacturing of mobile phones, tablets and laptops, mechanical engineering and solar battery manufacturing. Hence, industrial production growth in industrial zones was projected to be quite high in 2023 and create more new jobs for workers. The workforce in industrial parks will reach 200,000 people soon.

To minimize difficulties against tenants in the coming time, the Bac Giang Industrial Zones Authority has adopted the following solutions:

Further stepping up legal communication and information to tenants

Strictly carrying out administrative reform, improving the business and investment environment, raising the Provincial Competitiveness Index (PCI), and providing open, simple and easy administrative procedures for investors and businesses.

Accelerating infrastructure construction investment in industrial parks as well as supporting infrastructure for industrial parks (e.g. roads and worker accommodations).

Promptly grasping and addressing difficulties facing tenants; introducing solutions to mobilize and attract investment funds, improve investment quality appraisal in order to select tenants that fully meet following criteria: project investment rate, management experience capacity, financial capacity and modern technology.

Regularly inspecting and supervising investment, manufacturing and business activities of tenants; building a healthy and fair investment environment for all.

In addition, tenants need to further develop new markets and diversify products; innovate production technology and improve the quality of corporate governance, especially cost-effective production and business management, and human resource management.