Decree 82 would be revised comprehensively, creating conditions to attract more investment resources for infrastructure development of industrial parks and economic zones.

Need more mechanisms and incentives for investors in industrial park.
Source: Internet

On September 21, in Hanoi, a seminar collecting opinions on amending Decree 82/2018/ND-CP (Decree 82) on industrial parks (IPs) and economic zones (EZs) management was held under the direction of Vietnam Chamber of Commerce and Industry (VCCI).

Citing data from the General Statistics Office, Mr. Hoang Quang Phong, Vice Chairman of VCCI, said that by the end of April 2021, Vietnam had 575 industrial parks, 26 border-gate economic zones and 18 coastal economic zones. Vietnam's industrial zone system was currently the destination of thousands of businesses from 122 countries and territories. Vietnam has a geo-strategic position in industrial real estate development, stable politics, abundant labor resources, good economic growth along with the signing of a series of FTAs, etc., which were a springboard for attracting foreign investment.

However, according to the Vice President of VCCI, Vietnam needed to urgently prepare for the formation of a modern, large-scale industrial real estate system and logistics services to catch the FDI wave.

Therefore, the National Assembly and the Government have promulgated many regulations directly related to the investment and development of IPs and EZs such as investment orders and procedures, authority and responsibility of the related parties. However, according to businesses and experts at the seminar, it was necessary to develop and issue a Decree to replace Decree 82 in order to create a legal framework for investment and development of industrial parks and economic zones.

According to Pham Hong Diep, General Director of Nam Cau Kien Industrial Park (Hai Phong), the implementation process of Decree 82 still had many shortcomings that needed to be revised.

Firstly, was the barrier of conditions for consideration and making decisions on investment policies of industrial park infrastructure development and investment projects. According to Diep, the application of the average minimum occupancy rate of 60% for industrial parks caused difficulty for enterprises to invest in effective infrastructure development when launching new industrial park projects in the area because of their dependence on the investment attraction capacity of inefficient industrial parks.

Some industrial park models that were developing and encouraged by the State such as ecological industrial parks, supporting industrial parks, and specialized industrial parks would not have to apply the requirement of the minimum occupancy rate of 60% to create a clear corridor for businesses.

Another problem was removing and reducing the burden of administrative procedures in the implementation of legal procedures for the formation of the industrial zone, according to the leader of Nam Cau Kien Industrial Park.

According to Mr. Diep, it took up to 18-24 months for investors to get an investment license, and even up to 36 months for specific projects. This seriously affected the efficiency of investment as well as losing the opportunity to attract investment.

He also said that the investment limit in industrial parks with an area of ​​less than 500 hectares should not be limited, for the provinces with large land funds and good infrastructure, the development of industrial parks on a large scale of 1,000ha should be allowed to attract factory consortiums to invest in large production.

Sharing the same opinion, Do Quoc Dung, Head of Project Development Board of TNI Holdings Vietnam Development Investment Joint Stock Company, said that the draft Decree needed to set out specific criteria for conditions and types in the IP to determine regulations for small and medium enterprises, supporting industry enterprises, and innovative enterprises.

Also commenting on the draft, Do Trong Phu, Deputy General Director of Phu My Group Joint Stock Company, said that it was necessary to supplement more regulations so that projects which were set up from unfinished public assets would continue to be completed by the Provincial People's Committee, helping to better process the above projects.

At the workshop, many attendees also raised recommendations on mechanisms for workers' housing or the quality of labor resources. According to businesses, the government needed to have policies to innovate training programs, build a channel to connect labor supply and demand in each locality so that businesses could quickly access quality labor.

Mr. Hoang Quang Phong said that the management authorities needed to pay attention to receive comments more comprehensively, thereby creating conditions to attract high-quality projects, in line with the socio-economic development orientation in the future.