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Industry insiders share view on how to develop Vietnamese industrial zones in a sustainable manner in the coming period.

>> IPs look to hi-tech projects

Truong Tu Phuong, general director of Dai An Joint Stock Company, developer of Dai An Industrial Zone in northern Hai Duong province

Vietnam currently faces an oversupply of industrial zones (IZs). IZs are crucial for development, but what makes sense is where and how to develop to optimise efficiency. Since the inception, Dai An IZ prioritises projects employing green technologies and eco friendly cutting-edge production lines.

We appreciate development based on quality rather than quantity. Investors doing business in Vietnam’s Zs could turn to other countries to settle down if in Vietnam their operations are hindered by rigid regulations. In the face of current market vulnerabilities, we hope more tax incentives will be ratified in the coming period.

Nguyen Thi Nguyet Huong, general director of VID Group

State policies are commonly applied in the country whereas investment climate differs from location to location. Hence, administrative procedures would be a top factor to lure investors into a location. Swift and simple procedures would help facilitate project implementation.

Besides, IZs should gear towards promoting specialisation focusing on reciprocal industries in the supply chain such as forming IZs catered to electronics, supporting industries development or the provision of construction and planning consultancy services.

Vu Van Hoa, head of Ho Chi Minh City Export Processing and Industrial Zones Authority

In the coming period, we will scale up efforts to foster investment with Japan like in 2011 and strive to form joint ventures with Japanese counterparts in developing Ho Chi Minh City’s infrastructure. This is a precondition before we set up a whole IZ catered to Japanese companies like with the Vietnam-Singapore IP.

Big Japanese firms doing business in Vietnam would help secure other investors from that country to Vietnam. In addition, we are mulling requiring investors set up shop in Vietnam’s IZ to pump money into building attached urban areas. Those unwilling to do so will not be allowed to operate in IZs.

Nguyen Duc Hai, party secretary of central Quang Nam province

In fact, Vietnam’s IZs could just provide shelters for investors to put up factories instead of creating a cluster IZ chain. This has loosened connectivity among IZ businesses whereas this could put IZs on a sustainable development footing. That was why foreign investors were hesitant climbing onboard Vietnam’s IZs.

Chu Lai open economic zone is taking the right steps. We expect Chu Lai model could yield dividends in the future and stand out as an icon to domestic and foreign investors.

Nguyen Tien Nhuong, deputy chairman of northern Bac Ninh province

Bac Ninh has attracted many investors to its IZs. Practical experiences show that IZs just concentrating into production while neglecting other life facets and satellite activities for firms could hardly withstand current conditions. Countries like Thailand, Taiwan, Japan and Germany all operate complete industrial cities. IZs now no longer stay isolated but their development is complemented by surrounding units like hi-tech parks, tariff-free areas, residential and commercial quarters with schools, hospitals, trade and entertainment centres.