Vietnam occupies a prominent position in the global semiconductor industry hierarchy.

DNHN - Professor Dr. Nguyen Mai, Chairman of the Association of Foreign Investment Enterprises, asserts that Vietnam's participation in the global semiconductor industry chain places it in an advantageous position alongside the United States

In pursuit of establishing ecological industrial parks

Industrial Parks and Economic Zones have undergone consistent development for over three decades, progressively solidifying their significance in the socio-economic development process of the nation. They have emerged as a catalyst for economic restructuring and urbanization, thereby altering the aesthetics of numerous localities throughout the country. As of October 2023, 413 industrial parks have been established in the country, of which 295 are operational.

The Nam Cau Kien industrial park in Hai Phong and the Phu My 3 specialised industrial park in Ba Ria-Vung Tau are two examples of intelligent and sustainable industrial park development. Commencing with the pilot Khanh Phu Industrial Park and Gian Khau Industrial Park in Ninh Binh, Hoa Khanh Industrial Park in Da Nang, and Tra Noc 1&2 Industrial Park in Can Tho are also transforming conventional to eco-industrial park models.

In addition, Vietnam intends to design and construct new eco-industrial parks.

At present, the preliminary outcomes of the transformation of the industrial park paradigm and the strategizing of eco-industrial park expansion are exceedingly positive. Nonetheless, this endeavor encounters numerous obstacles, including inadequate capital resources and green financial policies that have yet to materialize.

Furthermore, policies and mechanisms to encourage businesses to form industrial symbiotic links are scarce. Certain municipalities have yet to fully embrace sustainable development, the green economy, and the circular economy; the processes for establishing new industrial parks, including eco-industrial parks, remain intricate and time-consuming; and so forth.

About this matter, Professor Dr. Nguyen Mai, Chairman of the Association of Foreign Investment Enterprises, stated at the Forum "Vietnam Industrial Parks 2023" that investing in ecological industrial parks entails a protracted investment cycle, in contrast to investing in commercial industrial parks. Vietnam's primary investment sources have been Asia, North Asia, and Asia, with the United States and Europe contributing minimally thus far.

Professor Mai asserts that the economy will be marked by extreme difficulty in 2023. Vietnam does possess rare earths and tungsten, however. At this time, dozens of investors have gathered before the Prime Minister and engaged in discussions with the Ministry of Planning and Investment, pledging to increase rare earth exploitation. We anticipate extracting approximately 220,000 tonnes of rare earth annually in the years to come, from the 4,500 tonnes of rare earth that we will produce in 2022. This not only benefits the nation but also causes a restructuring of the global rare earth market.

Adversities and obstacles

According to Professor Dr. Nguyen Mai, our nation is in an advantageous position in the global semiconductor industry chain, alongside the United States, the European Union, and Korea. India and Indonesia are the two largest partners challenging us for FDI at this time. Hence, our failure to recognize this formidable obstacle and capitalize on the unique opportunities presented by the European Union and the United States will prevent us from surmounting it.

Mr. Mai, on the other hand, concluded that the greatest obstacle to the group's entry into Vietnam is that we have failed to satisfy their requirements, particularly regarding intellectual property rights, petty corruption, and complex investment procedures. Everything is contingent on administrative reform at the national level. We require a reform that is more synchronized and efficient.

Consistent with the aforementioned viewpoint, Dr. Can Van Luc, Chief Economist of BIDV Bank, stated that a survey was undertaken involving approximately thirty business investors in the zone, during which they identified ten primary challenges. The most challenging aspects of this pertain to administrative and legal procedures.

He acknowledged that there are still overlapping and unclear administrative procedures. Although Decree 35 is progressive, certain criteria remain ambiguous. Regarding the service urban area, for instance, a business is unable to visualize it precisely and requires a comprehensive guide.

"Businesses are also extremely interested in the transformation of existing industrial parks into urban service industrial parks," What will the preferential mechanism be at that juncture? Does it plan to persist? Next, concerning land rent and valuation. "Over the past two to three years, numerous companies desired to pay but were unable to," he disclosed.

As per Mr. Luc's information, amendments to Decree 44, which specify a distinct chapter on land valuation, are anticipated to be promulgated by the Prime Minister in November.

The following matter concerns procedures about school owner investments. Hundreds of hectares of a sizable undertaking will require companies to diversify their investment portfolios. Upon the conclusion of phase 1, organizations aim to streamline processes and transition to the subsequent phase without the need to reapply from the start.

Mr. Luc added that authorization and decentralization constitute an additional obstacle. Furthermore, the Prime Minister remains concerned about this matter due to the persistence of issues.

Finally, a "handbook" to guide the investment process is desired by many investors. It is necessary to publish both the Vietnamese and English versions of this manual online.

Nghe Nhan