Hoa Binh: Many policies give priority to businesses investing in industrial zones and clusters

DNHN - The province of Hoa Binh will establish eight industrial zones with a total planning area of more than 1,500 hectares by the beginning of 2023.

Currently, there are two industrial zones, Luong Son Industrial Park and Song Da Left Bank Industrial Park, which have invested and completed technical infrastructure synchronously. The occupancy rate of these two industrial zones is greater than 80 percent. In the industrial zones of Yen Quang, Mong Hoa, Nam Luong Son, and Lac Thinh, investors are concentrating on site clearance, the construction of technical infrastructure (roads, electricity, wastewater treatment systems, etc.), and the creation of a clean land fund that is prepared to accept secondary investors.

The province of Hoa Binh has invested over VND 1,250 billion in industrial zone infrastructure development. Which has a central budget of 227.85 billion VND, a local budget of 354 billion VND, and an infrastructure investor's capital of 667 billion VND. Specifically, the Luong Son Industrial Park has attracted over 40 registered investment projects, including 18 foreign investment projects from Japan, Korea, and India. The projects cover a wide range of industries, including telecommunications equipment, apparel, steel, mechanics, auto parts, aluminum, and glass.

Hoa Binh has 21 industrial clusters (CCNs) with a combined area of 866,605 ha and eight industrial zones. 16/21 CCNs have been established by the Provincial People's Committee with a total area of 683,225 ha, and the total investment capital approved for the construction of technical infrastructure exceeds 4,862 billion VND. Numerous industrial zones, such as Tien Tien CCN (Hoa Binh City) and Phu Thanh II CCN (Lac Thuy), have rapid construction progress and complete technical infrastructure, attracting numerous secondary investors. Hoa Binh province's industrial zones have attracted more than 100 projects, including 26 foreign direct investment projects (representing 66.7% of FDI projects in the province) with a total registered capital of over 520 million USD and more than 80 projects. There are domestic investment projects with a total registered capital of greater than 13,600 billion VND. In industrial zones, 64 production and business projects are active. For industrial clusters in the province of Hoa Binh, there have been 28 secondary investment projects with a total registered capital of over 2,600 billion VND; the average occupancy rate of CCNs that have attracted secondary projects is close to 60%.

The industrial production value in industrial zones is projected to exceed VND 1,700 billion in 2022, creating over 1,300 jobs. Da Hop Trading Joint Stock Company has invested in Tien Tien Industrial Park (Hoa Binh City). This is the first model to be applied practically in Vietnam: a planned and invested industrial complex in the form of an industrial complex, with modern and synchronous infrastructure. Currently, more than ten businesses have invested in CCN Tien Tien. Over ninety percent of the land is utilized for industrial production.

In the coming years, the province of Hoa Binh will focus on attracting investment in the following sectors: high-quality, modern industrial production; the production and processing of agricultural, forestry, and aquatic products; the development of resort tourism; and ecologically conscious urban development. Exemption of land rent from 7 to 15 years (depending on the location of the industrial zones and clusters). For common projects, a preferential export tax of 17% for ten years, tax exemption for two years, and a reduction of 50% for the following four years. Or 10% preferential tax rate for one year; tax exemption for four years; 50% reduction for five to nine years; or 10% tax on tax exemption for the duration of the project. Moreover, projects are exempt from all machinery and equipment import taxes if Vietnam cannot produce them. In addition, Hoa Binh province supports enterprises in industrial zones employing 10 or more local workers with vocational training ranging from VND 300,000 to VND 1,000,000 per local worker; invests in necessary infrastructure such as roads, power supply, and plans construction at potential and advantageous locations to create favorable conditions for businesses to invest.

With the above preferential policies, Hoa Binh, particularly its industrial parks and industrial zones, will be an attractive destination for domestic and foreign investors.

Nguyen Hong Bai