Can Tho Export Processing and Industrial Zones Authority: 20 Years of Rising from Adversity

DNHN - After twenty years of planning, Can Tho City has created thirteen industrial parks (IPs) totalling about 7,473.23 hectares. The goal is to build IPs between 2021 and 2030, with plans to create seven more IPs totalling 6,485.75 hectares by 2050.

With an investment of more than VND 3,717 billion, VSIP Can Tho IP officially started construction in 2023, adhering to the model of a green, intelligent, and sustainable IP.

Rising from Adversity

The Prime Minister established the Can Tho Export Processing and Industrial Zones Authority (IPA) under Decision No. 749-TTg dated November 15, 1995. Immediately after its establishment, the IPA’s head office was located at 105 Tran Hung Dao Street, An Phu Ward, Ninh Kieu District, Can Tho City. Initially, despite facing challenges in terms of personnel, experience, and financial resources, the IPA still accelerated the construction progress of infrastructure while simultaneously promoting and calling for investment in Can Tho IPs. From there, the IPA’s personnel structure was gradually improved; facilities, equipment, and working tools were progressively enhanced to serve the IPA’s operations.

With inherent advantages in ports and airports, Can Tho IPs are strategically located near the economic, political, and cultural centre of Can Tho City and serve as a hub for trade, services, and science and technology in the Mekong Delta region.

Despite various obstacles in the national and international economies, Can Tho IPs attracted unprecedented amounts of investment capital in 2008–2009. To be more precise, the total registered investment capital in intellectual property (IPs) was USD 689 million in 2008 and USD 268 million in 2009. Many kinds of permissions or documentation for handling work for investors were considered during this time, and they were resolved one to three days ahead of schedule, with some permits being provided in just one day. The IPA's "one-stop, on-site" system was improved over time, and its officials and civil servants' professional credentials were greatly raised. As a result, this promoted the role of management under the "one-stop, on-site" mechanism outlined in Decree No. 35/2022/ND-CP, dated May 28, 2022, issued by the Government on the management of industrial parks and economic zones, and helped to create a favourable investment environment for investors and enterprises.

The year 2010 saw the opening of the Can Tho Bridge, the Can Tho International Airport, the Ho Chi Minh City - Trung Luong Motorway, and many other important projects that quickly brought about considerable improvements to the investment climate in Can Tho. Conferences and seminars on domestic and international investment promotion boosted the city's investment promotion efforts.

Notably, Can Tho City was able to successfully entice VSIP Group, a prominent investor in IP development in Vietnam, in 2022. VSIP Can Tho IP is a project that was launched on September 9, 2023, and is planned to be created using the principles of smart, sustainable, and environmentally friendly intellectual property.

Industrial Park Preferential Policies for 20 Years

All of Can Tho City's IPs are designed following the authorised plans for IP development in Vietnam. According to the Prime Minister's Dec. 2, 2023, Decision No. 1519/QD-TTg, which approved Can Tho City's development for the years 2021–2030 with an eye towards 2050.

Currently, 6 IPs have been established in the city, of which 5 are operational and 1 is currently undergoing infrastructure development, namely Vinh Thanh IP - Phase 1 (Vinh Thanh - VSIP Can Tho IP). These IPs are located in different districts (rural districts) with a total area of approximately 987.57 hectares. Specifically, Tra Noc 1 IP (area of 135 hectares) and Tra Noc 2 IP (area of 155 hectares) are located in Binh Thuy District, Thot Not IP (area of 74.87 hectares) is located in Thot Not District, Hung Phu 1 IP - comprising Cluster A and Cluster B (area of 262 hectares), and Hung Phu 2 IP (area of 67 hectares) are located in Cai Rang District.

The Can Tho Export Processing and Industrial Zones Authority's activity report states that between January 2023 and November 2023, two new investment projects totalling USD 4.25 million were drawn to the Can Tho IPs. This brought the total amount of attracted investment capital to USD 84.05 million, or 105% of the target.

As of November 2023, Can Tho IPs had 257 valid projects, leasing 342.82 hectares of industrial land, with a total registered investment capital of USD 1.910 billion; the actual investment capital amounted to USD 1.161 billion, accounting for 61% of the total registered investment capital. Of which: 227 domestic investment projects, with a total registered investment capital of USD 1.289 billion, and actual investment capital of USD 769.13 million, accounting for 60% of the registered capital; 29 foreign direct investment (FDI) projects with a total registered investment capital of USD 611.98 million, and actual investment capital of USD 382.38 million, accounting for 62% of the registered capital; and 1 ODA project in operation, with an investment capital of USD 9.49 million, and actual investment capital of USD 9.49 million, accounting for 100% of the registered capital. FDI enterprises in the IPs originate from various countries and territories, such as Thailand, Japan, Hong Kong, Singapore, Taiwan, Bahamas, Samoa, Seychelles, Marshall Islands, South Korea, China, and 5 joint ventures between Vietnam and other countries.

To create favourable conditions for the development of Can Tho IPs, the Central leadership, ministries, sectors, Party committees, and city authorities have over the years consistently demonstrated their concern, support, and active collaboration. These efforts have included developing a plentiful supply of labour and human resources, offering services to IPs, and developing preferential policies to entice businesses to invest in IPs. All of these actions have helped to successfully implement the goals outlined in Politburo Resolution No. 59-NQ/TW.

Hoang Nhi - Bich Lien