Trang tiếng Việt
The nation’s IZs and EZs lure US$150 billion in FDI PDF Print
Saturday, 16 July 2016 14:35

VIETRADE – As of May 2016, the country’s industrial zones and economic zones have attracted 7,540 foreign-invested projects, capitalized at approximately US$150 billion, according to the Economic Zones Management Department under the Ministry of Planning and Investment.


During the reviewed period, the industrial zones (IZs) and economic zones (EZs) also lured US$52.7 billion investment from some 7,000 domestically-financed projects, the Department said.


In four months of this year alone, nearly US$3.5 billion of foreign direct investment (FDI) was pumped into 395 projects which were invested in the IZs and EZs nation-wide.


Along with foreign-funded projects, these zones also attracted nearly 350 domestic ones worth VND8.5 trillion (US$382.5 million), mainly in high-quality apparel products and support industries for mechanics and textiles.


The department forecasts that foreign and domestic investment into the zone would likely to increase to US$11 billion and VND85 trillion by the end of the year, respectively.


Of the total, IZs were expected to lure about US$9 billion in FDI and VND50 trillion (US$2.25 billion) while EZs would likely to draw about US$2 billion in FDI and VND35 trillion (US$1.57 billion) in domestic investment.


Currently, Vietnam is home to 313 IZs and 16 EZs which are covering a total area of about 89,000ha.


According to the department, these zones have made important and practical contributions to the socio-economic development of their local areas, as well as of the country as a whole.


They have contributed trillions of Vietnamese dong to the State budget each year and provided millions of jobs. Last year, they contributed VND90.3 trillion (more than US$4 billion) to the State budget and created 2.6 million jobs.


However, despite such encouraging statistics, the performance of these zones was still below its potential due to a number of factors, such as insufficient links between enterprises in the manufacturing and processing industry, and a number of scant production and processing bases in these zones, the department said.


Therefore, it is necessary to promote the development of key processing and manufacturing projects in IZs and EZs nationwide and cultivate strong links in production among businesses to bolster the operational efficiency of this model, it noted.


Top priority should be also given to speeding up the implementation of technical infrastructure projects and revising some regulations regarding corporate income tax, land lease prices, and businesses’ financial obligations.


Evaluating environmental impacts is equally important before granting investment licenses to businesses, the department said, proposing the building of a large-scale and internationally-competitive special EZs.


Experts also said that it is a must for IZs and EZs nation-wide to continue to attract FDI with a focus on large industrial corporations with advanced technology in processing and manufacturing.


They also emphasized the importance of perfecting investment incentives to develop supporting industries while promoting co-operation between enterprises in the domestic supporting industries and foreign-invested processing and manufacturing companies to better participate in global value chains.


There should be an increase in state budget allocations and mobilizing other funds to improve the technical infrastructure of these zones, they suggested.

Developing workers’ technical skills as well as advanced skills with a focus on strengthening links between educational institutions and enterprises should be also included, they recommended./.

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