Vietnam needs to focus on developing the infrastructure system of industrial zones (IZs) to draw clean and quality foreign direct investment (FDI) in the context of the global production shift, heard a conference on June 19 in Hanoi.

Developing the infrastructure system of industrial parks is important
to attract quality foreign investment. (Photo: tapchitaichinh.vn)

Speaking at the second Industrial Real Estate Forum, Tran Thi Hong Minh, Director of the Central Institute for Economic Management (CIEM), said Vietnam had significant opportunities to attract quality FDI, given the Government’s success in containing the COVID-19 pandemic and efforts to recover economic growth post-pandemic.

In a more uncertain global economy after the pandemic, foreign investors would be more cautious in selecting destinations for their investments and would wish to diversify investment destinations.

Minh said the development of industrial property must contribute to promoting green growth and corporate responsibility, adding that nowhere was more advantageous than IZs to test the circular economy.

Investment in IZs must also take into account labour issues and social security, she said. The efficiency of IZs should not only be evaluated based on the occupancy rate, export scale and contribution to the State budget but also links among them.

According to Tran Quoc Trung, Deputy Director of the Economic Zones Management Department under the Ministry of Planning and Investment, the development of IZs must promote local strengths and regional links.

A system of core IZs must be formed to lead the development of major industries, Trung said.

The focus would also be placed on improving the efficiency of IZs, encouraging modern and environmentally-friendly technologies and diversifying investment co-operation models in developing IZs’ infrastructure system, he said, adding that private investment was encouraged.

It was also important to develop new-generation IZs, such as eco-industrial parks, supporting IZs, sectorial-specialised IZs and industrial and urban and service complexes.

The Ministry of Planning and Investment’ statistics showed that as of the end of May, there were 561 IZs nationwide with a total area of 201,000 hectares (or 0.6% of the country’s total area). Of them, 374 were operational.

According to real estate service firm Savills Vietnam, a wave of investors would land on Vietnam in the context of a global production shift, hiking demand for industrial land.

High-end residential and office segments would also benefit, Savills forecast.

However, limited industrial land supply and shortage in the labour force remained problems.