Developing green, ecological IPs is a key criterion for foreign investors pursuing sustainable development and social responsibility

Developing green, ecological IPs

Developing green, ecological IPs is becoming a high selection criterion of foreign investors pursuing sustainable development goals and aligning business benefits combined with social responsibility. With the innovative and consistent vision of provincial leaders in the past terms, Vinh Phuc is determined to take industry as a major leader, a driving force for growth, state budget collection and economic development and focus on developing green, ecological IPs to create sustainable competitive advantages. The province has issued many mechanisms and policies, promoted administrative reforms, eased the settlement of investment procedures, and prioritized clean land funds for IP infrastructure development.

From a place where industrial production was still rudimentary and there were no industrial parks, with efforts and attempts of all levels and branches of authority and localities, Vinh Phuc province planned to establish 29 industrial parks, of which 17 were founded, covering a total land area of 3,146 ha. As of November 15, 2024, Vinh Phuc IPs attracted 497 valid investment projects, including 121 DDI projects with VND38,973.01 billion of investment capital and 376 FDI projects with US$6.8 billion. Tenants in IPs currently employ over 140,000 workers and make important contributions to local socioeconomic development.

Given locational advantages along with well-invested synchronous technical infrastructure designed towards green and sustainable industrial development, Ba Thien 2 Industrial Park, invested by Vina-CPK Joint Stock Company, has become an attractive destination for more than 70 investment projects, which registered to invest a total of nearly US$1 billion and created jobs for more than 23,000 workers. Many big investors come from the United States, South Korea, Singapore and Sweden and many are doing very effective business like Nippon Paint Vinh Phuc, Weldex Vina, Assa Abloy and Polaris.

Ba Thien 2 Industrial Park attracts investors not only for its prime location but also for its modern infrastructure and technology. The wastewater treatment system, with a daily capacity of 10,000 cubic meters, meets international standards. The internal road network, built to concrete road standards, reduces production disruptions from road upgrades and repairs. The addition of trees and greenery along sidewalks and median strips creates a pleasant, green environment. Underground water supply and drainage systems ensure safety for both vehicles and workers. These features facilitate quick project implementation, improve the local investment environment, and boost the region’s competitiveness and appeal to investors.

Approved in principle by the Prime Minister in Decision 399/QD-TTg dated March 19, 2021 and approved of the detailed construction planning by the Vinh Phuc Provincial People's Committee in Decision 36/QD-UBND dated January 7, 2022, Nam Binh Xuyen Industrial Park has a total area of 295.74 ha, of which the rentable industrial land is 200.41 ha. The project costs VND2,200.74 billion for construction (of which the investor contributes VND360.740 billion). Mr. Nguyen Van Hung, Chairman of the Board of Directors of CNCTech Group Joint Stock Company, the investor of the project, said, Nam Binh Xuyen Industrial Park will be invested with an IMS automatic warehouse system, an AI-powered security and epidemic control system, a green park with a 10-ha regulating lake, and rooftop solar panels.

Moreover, Nam Binh Xuyen IP exempts tax in the first two years and reduces 50% of tax for the next four years. At the same time, it has a strategic location, right at the southern gateway of Binh Xuyen district and near to many large industrial parks in Vinh Phuc province like Binh Xuyen, Ba Thien, Thang Long Vinh Phuc and Son Loi. Currently, many investors are expressing their interest in Nam Binh Xuyen IP, especially investors from South Korea. The park aims to attract investors of software production, information technology, electronics, telecommunications, machine components, aviation components, household appliances and consumer goods.

According to the Provincial Planning for the 2021-2030 period, with a vision to 2050, Vinh Phuc will have 29 industrial parks, attract giant projects, strategic investors and multinational corporations, and realize green and sustainable economic growth goals. The province will further accelerate transformation from traditional IPs to ecological IPs, high-tech parks and specialized industrial parks; and develop industrial production and services on the principle of saving and effectively using land resources.

Aiming to attract 1-5 multinational corporations

According to the Strategic Investor Attraction Project, Vinh Phuc province aims to attract an additional US$2-2.5 billion of FDI fund by 2030, entice 1-5 multinational corporations on the Top 500 world-largest corporations, and increase the share of registered FDI capital from countries and territories in some regions to more than 80%. To achieve these goals and turn Vinh Phuc into a modern industrial province, the Provincial People's Committee directed relevant agencies to focus on completing plans according to the Vinh Phuc Provincial Planning for the 2021-2030 period, with a vision to 2050, especially construction planning and industrial park infrastructure planning to help optimize land and resource use, create a favorable environment for investors - a key factor for economic development, enhance competitiveness and sustainable development; and research and develop preferential policies for FDI projects in order to maximize central preferential policies.

In the near term, the province will consider and apply infrastructure rent support for tenants in non-State budget-invested IPs administered by the Vinh Phuc Industrial Zones Management Board, establish investment promotion funds and inter-regional policies, and introduce policies to attract startup businesses. In addition, the province will strengthen exchange and cooperation with central agencies, embassies, counselors, the Vietnam Chamber of Commerce and Industry (VCCI), JICA, JETRO, KCCI, KOTRA and other agencies. It will regularly participate in conferences, forums and exhibitions to meet investors, and introduce the local investment and business environment. It will continue administrative reform, remove difficulties and obstacles for investors, improve the effectiveness of local investment promotion, and boost the province's reputation to businesses searching for business expansion and reinvestment.

Furthermore, Vinh Phuc province will further develop logistics and support services; develop social housing and worker housing projects, cultural, entertaining and recreational areas to provide a better working and living environment for domestic and foreign workers and experts. Doing so, the province will create an attractive investment environment, retain and attract strategic investors, boost local socioeconomic development and advance transition to its desired outcome.