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“Hot” investment in industrial clusters

Recently, attracting enterprises to invest in industrial cluster infrastructure (CCN) is quite exciting. By the beginning of February 2017, there were 23/27 ICs receiving investment in infrastructure. ICs have attracted infrastructure investment companies thanks to the support through the province's incentive policy providing VND 15-20 billion / CCN.

 


According to the Department of Industry and Trade, after adjusting the plan, Dong Nai still retains 27 ICs with the total area of about 1.5 thousand hectares located throughout the province. Before the incentive policy was approved, attracting technical infrastructure investors was very challenging.

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​Pottery manufacturing facilities in Tan Vanward (Bien Hoa City) quickly delivered goods to customers to prepare for relocation into Tan Hanh pottery and ceramics industrial cluster (Tan Hanh commune, Bien Hoa city).

* Hot investment thanks to incentives
Dong Nai has established ICs with the objective of relocating, rearranging and attracting local small and medium enterprises, individuals and households to invest in production and business activities. However, there are ICs that have not been deployed for 5-7 years due to the failure toinvite infrastructure investment from enterprises.
Previously, infrastructure investors in high-cost industrial clusters were not entitled to incentives likethose in industrial zones, so they failed to attract investment. Therefore, the province has reviewed, discontinued the planning of unfeasible ICs and only decided to retain the ICs in accordance with the actual needs and promulgated regulations to support both infrastructure investors and secondary investors.
Mr. Duong Minh Dung, Director of Department of Industry and Trade, said: "In mid-2016, when the policy of providingVND 15-20 billionto supportenterprises investing in IC infrastructure went into effect, 10 ICs have found investors. But in order to increase incentives, speed up the progress of infrastructure construction of ICs, the province continues to petition the Central Government to exempt land rent from 11 up to 15 years; reduce the deposit to 50% instead of just 25% today. " If preferential policies for CCNs as well as industrial parks are provided, investors will "speed up" to complete the infrastructure soon and invite secondary investors. In addition, the Department of Industry and Trade is also petitioning the province to discontinue the procedure of applying for construction permits to create favorable conditions for secondary investors to invest in ICs.
"The district is planning 6 ICs which have found infrastructure investors. Infrastructure enterprises are supported by 50% investment of the works, which is a factor speeding up the construction of infrastructure. The problem that causes the infrastructure investorsdelay the implementation\ of the project is the prolonged process of compensation and land clearance, "- Chairman of VinhCuu district People's Committee Vo Van Phi said.
When the investor completes the compensation and land clearance and begin the construction of the ICs’ infrastructure, they will receive reimbursement. With an area of less than 30 hectares, the investor will be provided with about 15 billion, 20 billion for more than or equal to 30 hectares. Approximately 5 ICs in the province received infrastructure support. Mr. Le Van Minh, General Director of Do ThanhAutomobile Joint Stock Company, invester of Do ThanhIndustrual Cluster (Long Thanh District), said: "The Company is hurriedly completing investment procedures for Do ThanhIC which will soon come into operation. With the financial support of the province, investors have more capital to shorten the completion time of the infrastructure of the project. "
* Incentives for secondary investors
In addition to supporting enterprises investing in infrastructure, the province also promulgated regulations to support secondary investors from 60-300 million / facility, depending on the area of land lease when relocating their facilities to the ICs. The level of incentive includes: cost of dismantling, unloading, transportation, factory construction and infrastructure use fee. More specifically, a medium-sized enterprisewith land lease area of not more than 10,000 square meterswill receive 300 million dong / facility, small-sized enterprises with the land lease area of less than 5,000 square meters will receive150 million dong / facility and micro enterprises with the land lease area of less than 2,000 square meters will receive 60 million dong/facility. "Enterprises and factories, after relocating facilities into ICs, shall register with infrastructure investors for submission to the Industry and Trade Department and report to the council for consideration," said Mr. Duong Minh Dung.
Mr. Ngo The An, Chairman of Long Thanh District People's Committee, said: "Long Thanh has 5 ICs, but the infrastructure deploymentis carried out very slowly. Therefore, the relocation of enterprises, manufacturing and business facilitiesin residential areas into ICs cannot be finished. "
Although theincentivepolicy for enterprises and facilities relocating to ICswas promulgated in 2016, few are currently aware of the incentive procedures. Mr. Hua My Chieu, owner of Phong Son pottery factory (in Tan Van ward, Bien Hoa city), shared: "My facility is operating on 10,000 square meters of lease land in Tan Hanh industrial cluster (Tan Hanh commune, Bien Hoa city). Hoa) and is in the process of building the shop floor but I have no idea about the incentive policy to prepare for the procedures. "
According to Mr.Chieu, the province should provide information widely to enterprises and facilities subject to relocation to ICs. With the incentive policy, facilities will reduce some of the initial difficulties and relocation will be made faster. According to the list approved by the provincial People's Committee, there are 188 enterprises and manufacturing facilities in the industrial sector that have to move from the residential areas to the ICs. Many enterprises and facilities that are moving into CCNs expressed their wish for the procedures and documents to be simplified and quickly handled so that they can enjoy the incentives soon enough.


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